Vista first-half profit more than doubles as acquisitions lift revenue 49%

Friday 26th August 2016

Vista Group International more than doubled first-half profit as the cinema software developer's series of recent acquisitions bolstered revenue.

Net profit rose to $2.7 million, or 3 cents per share, in the six months ended June 30, from $1.3 million, or 2 cents, a year earlier, the Auckland-based company said in a statement. Revenue climbed 49 percent to $40.7 million, which it said left it on track to boost annual sales by 20-to-30 percent, while earnings before interest, tax depreciation and amortisation climbed 47 percent to $5.3 million.

The bottom line was dragged down by a $782,000 foreign exchange loss as currency markets went through a period of turbulence in the wake of the UK vote to quit Europe in late June and the kiwi dollar's strength persisted, it said.

"Vista Group's trading performance in the first half of FY2016 represents a solid increase from FY2015 in terms of revenue and ebitda, which represented both the expanded nature of Vista Group and the improved performance of the operating businesses," it said. Even with the unrealised currency movements, "Vista Group still shows an increase in operating profit for the first half."

The cinema software firm has been bolting on new acquisitions since it went public in 2014 and the latest period includes purchases of a 50 percent stake in London-based marketing firm Powster, a half-share of Dutch software developer Share Dimension, and 100 percent of New Zealand's flicks.co.nz, which provides information about movie sessions.

The company's Vista Cinema segment has increased its site numbers by 490 to 5,200 in the half, with key deals signed in China, South Africa and the Middle East. Its Veezi software-as-a-service unit added 79 contracted sites, taking it to 429 at June 30, while the Movio analytics segment lifted revenue 85 percent as it signed major contracts with NCM, Sony and Warner Bros. The MACCS film distribution segment increased revenue 33 percent due to a deal with Warner Bros.

Vista's operating cash flow shrank to $1.8 million in the half from $7.5 million a year earlier, while its merger and acquisition activity lifted the cash outflow on investing to $11.1 million from $8.8 million. The company had cash and equivalents fo $16.2 million as at June 30.

After the June 30 balance date, Vista crossed the last regulatory hurdle in a new joint venture with China's Beijing Weying Technology Co (WePiao), whose backers include the Wechat/Tencent Group, which it says will help grow its presence in the Chinese film-going market, the fastest-growing in the world.

Vista shares last traded at $6.70, and have gained 16 percent this year.

BusinessDesk.co.nz

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