VGL
28/08/2015 08:32
HALFYR
PRICE SENSITIVE
REL: 0832 HRS Vista Group International Limited
HALFYR: VGL: VGL - Half Year Interim Report
Market Announcement
28th August 2015, Vista Group International Ltd, Auckland, New Zealand
Vista Group - solid first half trading and well positioned for continued
growth
Highlights
o Revenue up $10.0m (56%) on 2014 at $27.3m
o Forecast to meet PFI revenue with a strong second half expected
o EBITDA up $2.5m (100% ) on 2014 at $5.0m
o Operating cash flow strong at +$7.4m
o Progress with commercialisation of Movio Media and the customer expansion
of the base Movio cinema analytics platform
o MACCS secured the contract for Warner Brothers in the USA
o Investments to promote growth have been concluded with additional active
opportunities being pursued.
Vista Group (NZSX: VGL, ASX: VGI) has today announced its half year results
for the 6 months to 30 June 2015. Overall, performance is well up on the 2014
half year. An expected strong second half, based on a solid revenue pipeline,
will see the business achieve its 2015 full year PFI revenue targets.
Divisional overview
Vista Entertainment Solutions' had a solid performance. Site numbers
increased by over 200 against the full year forecast of just over 500.
Maintenance and recurring revenues were strong and the sales pipeline for the
2nd half of 2015 indicates that forecasts will be exceeded. The integration
of Ticketsoft and the benefits of the new distribution agreements in France
and Japan provide additional growth opportunities.
Veezi reached 250 installed sites by 30 June. Revenue is tracking well and
should exceed the 2015 PFI forecasts by year end. Opportunities to expand
other markets, especially France, China and India are well advanced.
Movio has added new customers for its core cinema analytics product and a key
focus has been the release and commercialisation of its Movio Media platform.
This has taken a little longer to achieve than anticipated however the recent
signing of NCM and the marketing campaigns run by several major film studios
in the USA has it strategically well placed to achieve its future growth
objectives.
The core business for MACCS performed to expectation. The signing of the
contract with Warner Brothers in the USA was the key highlight. While this
was achieved later in the period than expected the outlook for MACCS going
forward is strong.
Financial overview
Vista Group's trading performance in the first half of 2015 represented a
significant increase from 2014 which represented both the enlarged nature of
Vista Group post the August 2014 IPO and the improved performance of the
operating businesses.
The financial position of Vista Group remains strong and with cash reserves
at $29.4m it is well placed to take advantage of strategic opportunities that
have been identified and are being actively pursued.
The result for the 2015 half year includes a restatement of the treatment of
the deferred consideration on the acquisition of Virtual Concepts Limited.
Previously this was recognised as a liability at the time of the acquisition
but after review of NZ IFRS 3 it has been determined that it must be
recognised as an employee cost over the earn out period. This has resulted in
a restatement of the opening balance at 31 December 2014 and the recognition
in these financial accounts of the expense accrual required by NZ IFRS 3.
Outlook
The existing businesses within Vista Group are strategically well placed in
each of their markets and the sales pipeline for each of them looks strong
for both the second half of 2015 and the 2016 year.
Vista Group is also looking at additional investments and opportunities to
grow core revenue and achieve new market entries and a number of specific
strategic opportunities have been identified and are being actively pursued.
Contact:
Brian J Cadzow
Director - Finance and Legal
Email - [email protected]
Phone - +64 9 984 4570
End CA:00269223 For:VGL Type:HALFYR Time:2015-08-28 08:32:09
