Announcement

INTERIM: VGL: Solid Core Performance Supports Vista Cinema Transformation 08:34a.m. 
VGL  
29/08/2019 08:34  
INTERIM  
PRICE SENSITIVE  
REL: 0834 HRS Vista Group International Limited  
 
INTERIM: VGL: Solid Core Performance Supports Vista Cinema Transformation  
 
Solid Core Business Performance Supports Investment in Vista Cinema  
Transformation Project  
 
Financial Highlights  
 
o 19% growth in revenue over H12018 for the Vista Group core businesses -  
Vista Cinema and Movio.  
o 16% growth in EBITDA over H12018 for the Vista Group core businesses -  
Vista Cinema and Movio.  
o 35% growth in revenue for Movio over H12018 to $11.6m, resulting in 42%  
growth in EBITDA over H12018 to $2.3m.  
o 12% growth in Vista Group consolidated revenue over H12018 to $67.5m.  
o Vista Group EBITDA of $11.8m reduced 19% over H12018 impacted by a decline  
in movieXchange revenue, reduction in Vista China localisation revenue and  
adverse comparative FX.  
o Vista Group profit before tax of $6.2m.  
o Vista Group well positioned to capitalise on future opportunities with  
$24.8m available cash balance.  
o Vista Group to pay a fully imputed interim dividend of 1.2 cents per share  
for H12019 on Friday 27 September 2019 - the top end of the dividend policy  
range.  
 
Operational Highlights  
 
o Vista Cinema global market share of Enterprise segment (cinemas with 20+  
screens) reached 49.9% excluding China (39.4% including China).  
o Vista Cinema global market share of total cinema screens increased to 39%  
excluding China (30.3% including China).  
o 481 new Vista Cinema sites taking the total to 7,683 sites - including 89  
new sites in China.  
o 83 new Veezi (small cinema) sites taking the Veezi total to 984 sites.  
o Movio revenue per Active Moviegoer, grew 27% over H12018.  
o 14% increase in Vista Group recurring revenue over H12018 to $41m - 61% of  
total Vista Group revenue.  
 
Transformation of Vista Cinema to SaaS  
 
Vista Group is excited to announce that it has embarked on a transformational  
investment to migrate Vista Cinema to a pure SaaS future.  
 
Beginning in the second half of 2019, Vista Group will accelerate the process  
commenced in 2017 that has already delivered several Vista Cinema cloud  
solutions. The faster timeframe is being driven by demand from Vista's cinema  
exhibition customers and prospects. Vista Group's progress to date, and the  
market's realisation that the pace of innovation and ease of access that SaaS  
solutions deliver are transformative benefits for their operations, has  
resulted in a customer mindset shift from caution to support; Vista intends  
to respond accordingly.  
 
"Our goal is simple," commented Kimbal Riley, Group Chief Executive Officer  
of Vista Group; "to deliver a multi-tenant SaaS product for cinema circuits  
and cinemas of all sizes, in all countries, as fast as we can. Our teams are  
already immersed in the project and the excitement about our future is  
infectious. Vista Cinema has a long history of delivering on our promises and  
we have every intention of continuing that tradition."  
 
Vista Group aims to have 'Vista Cinema - SaaS' in the market during 2021,  
available to both new and existing customers. From a business transformation  
perspective, the project will achieve the most important goal of exceeding  
the expectations of Vista Cinema's customers; it will also allow deployment  
to customer locations more quickly, deliver functionality in real time, and  
create a new platform for operating leverage in future years.  
 
Group Overview  
 
Vista Cinema's strong first half was highlighted by the successful  
implementation and go-live of 90 sites with Marcus Theatres in the USA.  
Revenue expansion continues with the recent launch of new product innovations  
Serve, Horizon and very successful expansion of hardware and other  
third-party offerings.  
 
Movio's first half achievements included the implementation of Aeon, Movio's  
first Japanese cinema exhibitor. Regional growth of 43% in LATAM and 41% in  
EMEA has increased Movio Cinema's global footprint to 55 countries. Movio  
Media revenue was strong due to an increase in Research revenue and renewed  
contracts with Amazon, Warner Bros. and Viacom.  
 
Additional Group Companies (AGC) performance reflected modest revenue  
increases. Powster continues revenue growth from its showtimes platform,  
though creative projects targeted for H12019 have now been pushed to later in  
the year. Maccs' business had a strong first half. New deals signed in July  
2019, plus reporting expansion via collaboration with Vista Cinema in Europe,  
provides an encouraging outlook for Maccs. Flicks has obtained unique user  
growth in both Australia and New Zealand, with "Your Cinema" websites now  
being used by 97 cinemas across 13 countries.  
 
Early Stage Investments' (ESI) revenue was impacted by a one-off prior year  
transaction for Cinema Intelligence and revenue in movieXchange dropping due  
to the decline of MoviePass, a key ticketing partner for movieXchange tickets  
in 2018.  
 
Associate company Numero achieved strong revenue growth over the 2018  
corresponding period. Numero is now providing reporting services in multiple  
countries, global coverage has reached 22 territories.  
 
Vista China H12019 highlight was the addition of 89 new sites. Vista Group is  
in advanced negotiations to acquire a controlling stake in Vista China.  
 
JV company Stardust is not consolidated. It continues to focus on product  
enhancements to expand its reach to avid moviegoers.  
 
Kimbal Riley  
Group Chief Executive  
Vista Group International Ltd  
Contact: +64 9 984 4570  
End CA:00339997 For:VGL Type:INTERIM Time:2019-08-29 08:34:11  

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