Vista Group International Ltd · NZX:VGL
Vista Group International — FY2019 Earnings Presentation
28 slides from Vista Group International's earnings presentation, Feb 27, 2020
Slide 1: Vista Group 2019 Full Year Results
VISTA GROUP 2019 FULL YEAR RESULTS 27 February 2020
Slide 2: Important Notice
IMPORTANT NOTICE This presentation has been prepared by Vista Group International Limited (“Vista Group”). Information in this presentation: • is provided for general information purposes only, does not purport to be complete or comprehensive, and is not an offer or invitation for subscription or pu
Slide 3: Agenda
AGENDA VISTA GROUP SUMMARY KIMBAL RILEY GROUP CHIEF EXECUTIVE FINANCIAL RESULTS MATT CAWTE CHIEF FINANCIAL OFFICER OPERATIONAL HIGHLIGHTS KIMBAL RILEY GROUP CHIEF EXECUTIVE WILL PALMER CEO MOVIO OUTLOOK Q+A 3
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Slide 5: Vista Group Summary
VISTA GROUP SUMMARY Solid 2nd half performance underpins results in line with guidance. • Group revenue growth of 11% highlighted by 16% growth for core business • Solid underlying EBITDA performance • SaaS revenue now 33%, recurring revenue steady at 61% up $8m • Good revenue growth and a strong pr
Slide 6: Financial Results
FINANCIAL RESULTS 6
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS TOTAL REVENUE RECURRING REVENUE OPERATING PROFIT $144.5m $88.2m $21.3m (up 11%) (up 11%) (down 14%) EBITDA1 OPERATING CASHFLOW FINAL DIVIDEND $31.1m $15.5m 2.10 (down 5%) (down 44%) cents per share 1EBITDA is a Non-GAAP measure and is defined as earnings before net finance costs
Slide 8: Vista Group - Year Revenue
VISTA GROUP - 6 YEAR REVENUE 175. +$13.8M 150. +$24.1M 125. +$18.0M $ MILLIONS 100. 75. +$23.2M 25% CAGR 2014-2019 +$18.2M 50. 25. 0. 2014 2015 2016 2017 2018 2019 RECURRING REVENUE 8
Slide 9: Trading Performance
TRADING PERFORMANCE NZ$M (Twelve Months Ended) 31 Dec 2019 31 Dec 2018 % Change • Good top line growth, especially in core Revenue 144.5 130.7 11% • Expense growth higher with investment in team and global reach Expenses 123.3 107.0 15% • Performance from associates Foreign exchange losses / (gains)
Slide 10: Operating Segments
OPERATING SEGMENTS 2019 Additional Group Early Stage NZ$M Cinema Movio Corporate Total Companies Investments Revenue 96.3 25.7 17.6 2.9 2.0 144.5 EBITDA1 30.9 6.8 3.3 (1.3) (8.6) 31.1 EBITDA % of revenue 32% 26% 19% n/a n/a 22% 2018 Additional Group Early Stage NZ$M Cinema Movio Corporate Total Comp
Slide 11: Financial Position
FINANCIAL POSITION • Strong balance sheet maintained NZ$M 31 Dec 2019 31 Dec 2018 % Change • 2018 cash benefited from $7m customer prepayments Cash & short term deposits 19.5 34.4 -43% • IFRS16 Lease accounting increases both sides of balance sheet and Other Current Assets 58.2 62.2 -6% impacts tax
Slide 12: Cash Flow
CASH FLOW NZ$M 31 Dec 2019 31 Dec 2018 % Change • Collections in line with prior year, adjusting for 2018 pre-payments Receipts from customers 143.6 132.4 8% • Working capital up versus prior year • Underlying cash generation in line with Payments to suppliers & staff (118.0) (96.0) 23% previous yea
Slide 13: Dividend Proposal
DIVIDEND PROPOSAL • The Board have resolved to pay a final dividend at the top of the policy range (50%) and that the dividend will carry full imputation credits • The value of the final dividend will be 2.10 cents per share representing a total payment of $3.5m • The record date for the dividend is
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS 14
Slide 15: Cinema Segment
CINEMA SEGMENT $96.3M GROWTH +17% $30.9M GROWTH +9% REVENUE EBITDA Vista Cinema provides cinema management software to the world’s largest cinema exhibitors • 857 new sites in 2019 (including 143 sites in China) • Total now 8,059. Total in China now 1,101 • Overall, Vista and Veezi now have customer
Slide 16: Vista Market Share
VISTA MARKET SHARE Vista Cinema percentage of the world market – for cinema exhibition companies with 20+ screens 86% CANADA 2,081/2,435 screens 36% EUROPE 7,377/20,728 screens 50% USA 16% CHINA 17,209/34,779 screens 6,529/40,636 screens 37% ASIA (excl. CHINA) 98% CENTRAL AMERICA 63% MIDDLE EAST 5,3
Slide 17: Cinema Segment - Continued
CINEMA SEGMENT - CONTINUED Provides cinema management software to the world’s independent cinema exhibitors • 161 new sites bring total site numbers to 1,062 – including China • China now with 88 sites • 3% increase in revenue per month per site compared to 2018 • Revenue from eco system may become
Slide 18: Movio Segment
CORE REVENUE EBITDA $25.7 M GROWTH +13% $6.8 M GROWTH +6% Global leader in data-driven marketing, providing products and services to exhibitors, studios and film advertising specialists. Movio Cinema • Global revenue grew 19%, increasing footprint to 57 countries. • Regional growth in EMEA of 38%, w
Slide 19: Critical KPIs & Growth Drivers
Critical KPI’s & Growth Drivers Increase volume – Active Moviegoers Increase revenue per Active Moviegoer • Continued innovation and investment in Movio Cinema. • Expanding existing US Research deals. • Focus on growth in EMEA region and exploring opportunities in Japan. • Growth of Research and Med
Slide 20: Additional Group Companies
ADDITIONAL GROUP COMPANIES $17.6M GROWTH +17% $3.3M GROWTH +57% REVENUE EBITDA Provides world leading theatrical Box Office Reporting World leading film marketing Movie and cinema review and distribution software products showtime guide • Good revenue growth • Good revenue growth 21% and (35%), albe
Slide 21: Early Stage Investments
EARLY STAGE INVESTMENTS $2.9M ($1.3M) REVENUE EBITDA GROWTH - 36% Software to optimise film A platform to share film digital forecasting and scheduling assets & enable new cinema ticketing sales channels • Modest revenue growth (13%) • Stronger second half • movieXchange Tickets • Increasingly key c
Slide 22: Associate Companies
ASSOCIATE COMPANIES Vista China Operating Performance • 2019 revenue of $19.2m down 7% on 2018 • EBITDA result small loss for 2019 • Percentage of revenue based on share of online ticket sales reached 80% by year end • Strategy fine tuned to focus on luxury top end cinemas with partner relationships
Slide 23: Update on Vista Cinema SaaS Transformation
UPDATE ON VISTA CINEMA SAAS TRANSFORMATION Key Milestones • Detailed internal program reporting established • Program manager appointed • Commercial program established and resourced • First outsource partner engaged and underway • 25 additional SaaS focused technologists engaged. 23
Slide 24: Vista Group Themes: Simplify and Scale, Increase TAM, Innovation
VISTA GROUP THEMES SIMPLIFY AND SCALE INCREASE TAM INNOVATION • Cinema Intelligence and • Transformation to SaaS under • Mica released by MACCS to movieXchange now integrated way for Vista Cinema target small distributors into Vista Cinema • Offices opened in Kuala • Serve sold 1m items in the last
Slide 25: Vista Group Themes: Top Customers, Recurring Revenue
VISTA GROUP THEMES TOP 10 CUSTOMERS RECURRING REVENUE UNDERSTAND MOVIEGOERS • Top 10 customers accounted • Impact of transition to SaaS • Upcoming release of Movio Cinema for 33% of revenue (up from post 2021 enhanced AI capabilities 29%) • Positive trends in Veezi, • Movio Research is expanding the
Slide 26: Outlook
OUTLOOK • We expect revenue growth in the region of 13-18% in 2020 (excluding consolidation of Vista China) and to maintain underlying EBITDA margin percentage(1,2) • Industry analysts predict a solid box office performance (excluding China) for 2020 with a broad range of exciting films • We are ple
Slide 27: Questions
QUESTIONS 27
Slide 28: Thank You
THANK YOU 28
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