Solid Core Performance Supports Vista Cinema Transformation
____________________________________________________________________________________________
Vista Group International Ltd, L3, 60 Khyber Pass Road, Newton, PO Box 8279, Symonds St, Auckland 1150, NZ
Market Announcement
29 August 2019, Vista Group International Ltd., Auckland, New Zealand
Solid Core Business Performance Supports Investment in
Vista Cinema Transformation Project
Financial Highlights
• 19% growth in revenue over H12018 for the Vista Group core businesses – Vista Cinema and
Movio.
• 16% growth in EBITDA over H12018 for the Vista Group core businesses – Vista Cinema and
Movio.
• 35% growth in revenue for Movio over H12018 to $11.6m, resulting in 42% growth in EBITDA over
H12018 to $2.3m.
• 12% growth in Vista Group consolidated revenue over H12018 to $67.5m.
• 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.
• Vista Group profit before tax of $6.2m.
• Vista Group well positioned to capitalise on future opportunities with $24.8m available cash balance.
• 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
• Vista Cinema global market share of Enterprise segment (cinemas with 20+ screens) reached
49.9% excluding China (39.4% including China).
• Vista Cinema global market share of total cinema screens increased to 39% excluding China (30.3%
including China).
• 481 new Vista Cinema sites taking the total to 7,683 sites – including 89 new sites in China.
• 83 new Veezi (small cinema) sites taking the Veezi total to 984 sites.
• Movio revenue per Active Moviegoer, grew 27% over H12018.
• 14% increase in Vista Group recurring revenue over H12018 to $41m – 61% of total Vista Group
revenue.
____________________________________________________________________________________________
Vista Group International Ltd, L3, 60 Khyber Pass Road, Newton, PO Box 8279, Symonds St, Auckland 1150, NZ
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
---
1
VISTA GROUP 2019HALFYEAR RESULTS
29 August2019
IMPORTANT NOTICE
2
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 notanofferor invitation for
subscriptionorpurchaseof, orsolicitationof anofferto buy or subscribe for,financial productsin Vista Groupor anyof its related
companies;
•does not constitutea recommendation orinvestmentor any other typeof advice, and may not be relied upon in connection with any
purchase or saleof financial products in Vista Group or anyof its related companies;
•should be read in conjunction with, and is subject to, Vista Group’s financial statements, market releases and informationavailableon
Vista Group’s website (www.vistagroup.co)and on NZX Limited’s website (www.nzx.com) under ticker code VGL;
•may include projections or forward-lookingstatements about Vista Groupand its related companiesand the environmentsin
whichtheyoperate. Such forward-looking statements are based onsignificant assumptions and subjective judgements which are
inherently subject torisks, uncertainties and contingencies outsideof Vista Group’s control. Although Vista Group’s managementmay
indicate and believe the assumptions underlying the forward-lookingstatements are reasonable, any assumptions could prove inaccurate
or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-lookingstatements will be
realised.Vista Group’s actual results or performance may differ materially from any suchforward lookingstatements;and
•may include statements relating tothepast performanceof Vista Group and/or its related companies, whichare not, andshould not be
regarded as,a reliable indicatorof future performance.
While all reasonable care has been taken in compiling this presentation, Vista Groupand its related companies, and their respective directors,
employees, agents and advisersaccept no responsibility for any errors or omissions.Noneof Vista Group or its related companies, or
anyof their respective directors, employees, agents or advisers makes any representation or warranty, express or implied, as tothe accuracy
or completenessof the information in this presentation or as to the existence, substance or materialityof any information omitted from this
presentation.
Unless otherwise stated, all information in this presentation isexpressedat the dateof this presentationand all currency amounts are in NZ
dollars.
AGENDA
3
VISTA GROUP SUMMARY
FINANCIAL RESULTS
OPERATIONAL HIGHLIGHTS
OUTLOOK
KIMBAL RILEY
GROUP CHIEF EXECUTIVE
WILL PALMER
CEO MOVIO
Q+A
VISTA CINEMA TRANSFORMATION
VISTA GROUP OPERATING SEGMENTS
4
ADDITIONAL GROUP COMPANIES(AGC)
CINEMA
MOVIO
ASSOCIATES/ JOINT VENTURES
EARLY STAGE INVESTMENTS(ESI)
CORE BUSINESSES
VISTA GROUP 1
ST
HALF 2019 SUMMARY
5
Continued excellent performance from Vista Group’s core businesses (Vista Cinema and Movio) over pcp
•19% increase in revenue for the core businesses
•16% increase in like for like
1
EBITDA
2
for the core businesses,as operating performance is sustained.
Reported Vista Group revenue of $67.5m (12% growth), impacted by:
•Decline in movieXchange revenue ($0.9m) due to the demise of MoviePass
•Known reduction in localisation revenue from Vista China ($1.9m).
Vista Group like for like
1
EBITDA
2
of $11.8m masks solid underlying performance with reported EBITDA,
1, 2
impacted by:
•MovieXchange revenue decline ($0.9m)
•Vista China revenue reduction ($1.9m)
•Adverse FX movement compared to pcp($0.8m).
14% increase in recurring revenue over pcpto $41m –61% of Vista Group revenue
1 In order to provide a like-for-like comparison, the prior year comparative period has been adjusted for the impact of NZ IFRS 16 Leases.
2 EBITDA is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition expenses, capital gains / losses, impairment losses and equity accounted results from associates and joint venture companies.
FINANCIAL HIGHLIGHTS
VISTA GROUP 1
ST
HALF 2019 SUMMARY
6
OPERATIONAL HIGHLIGHTS
•Strong balance sheet maintained - low debt and a solid cash position
•Vista Cinema globalmarket share of Enterprise (20+ screens)excluding China reaches 49.9%
(39.4% including China)
•Vista Cinemaglobalmarket shareof TOTAL screensincreased from 29.1% in December 2018 to
30.3% at the end of June 2019 (39.0% excluding China)
•Intense period of product innovation in all Vista Group companies: Vista Cinema, Movio, Powster,
Cinema Intelligence and Maccs
•Movio Media launched in the UK ahead of schedule and enjoying early successes
•Vista Group relocated to new premises in Los Angeles catering for growth.
FINANCIAL RESULTS
7
CORE FINANCIAL METRICS
RECURRING REVENUE
$41.1m
(up 14%over pcp)
OPERATING PROFIT
$8.0m
(down29% over pcp)
2
TOTAL REVENUE
$67.5m
(up 12%over pcp)
OPERATING CASHFLOW
$7.5m
(down40%over pcp)
INTERIMDIVIDEND
1.20
Cents per share
EBITDA
1
$11.8m
(down19% over pcp)
2
1
EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition expenses, capital gains /
losses, impairment losses and equity accounted results from associates and joint venture companies. Depreciation and amortisation in the current period is $3.7m (June
2018: $3.1m after adjusting for NZ IFRS 16).
2
In order to provide a like-for-like comparison, the prior year comparative period income statement has been adjusted for the impact of NZ IFRS 16 Leases.
8
REVENUE GROWTH
9
$- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50
Product
Maintenance
Services
Development
Hardware / Other
REVENUE GROWTH BY SOURCE OVER PCP
Jun-19Jun-18
$- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50
Cinema
Movio
AGC
ESI
Corporate
REVENUE GROWTH BY SEGMENT OVER PCP
Jun-19Jun-18
NZ$m
NZ$m
TRADING PERFORMANCE
1
EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition expenses, capital gains / losses, impairment losses and equity accounted results
from associates and joint venture companies. Depreciation and amortisation for the current period is$3.7m (June 2018: $3.1m after adjusting for NZ IFRS 16).
2
In order to provide a like-for-like comparison, the prior year comparative period has been adjusted for the impact of NZ IFRS 16 Leases.
10
Strong revenue growth from core
businesses.
Expenses up 20% chiefly comprising a
continued investment in staffing,
additional cost of sales (Cinema
hardware and Movio), and LTI programs
for key executives.
Core businesses EBITDA margin
sustained, but Vista Group profit and
EBITDA impacted by revenue reductions
from Vista China and MX and adverse
FX movement compared to pcp.
For six months ended
NZ$m30 Jun 201930 Jun 2018
2
% Change
Revenue
67.560.112%
Expenses59.549.620%
Foreign exchange gains-(0.8)
OPERATING PROFIT8.011.3(29%)
Net financing costs(0.4)(0.5)
Share of loss from associates and joint ventures(1.5)(1.7)
Capital gain – Stardust loss of control0.1-
PROFIT BEFORE TAX
6.29.1(32%)
PROFIT ATTRIBUTABLE TO SHAREHOLDERS
4.05.2(23%)
EBITDA
1
11.814.6(19%)
OPERATING SEGMENTS – H12019
11
2019 (NZ$m)
CinemaMovio
Additional Group
Companies
Early Stage
Investments
CorporateTotal
Revenue
45.811.67.81.31.067.5
EBITDA
1
15.72.30.6(1.0)(5.8)11.8
EBITDA margin34%20%7%(79%)18%
2018 (NZ$m)
2
Cinema
Movio
Additional Group
Companies
Early Stage
Investments
CorporateTotal
Revenue39.78.66.72.22.960.1
EBITDA
1
13.91.60.80.5(2.2)14.6
EBITDA margin
35%19%12%20%24%
Movio delivered a strong first half performance resulting in revenue growth of 35% and an EBITDA increase of 42%.
Cinema segment revenueand EBITDAgrew 15% and 13%respectively, demonstrating sustained growth.
Sustained EBITDA margins in core businesses, Cinema 34%, Movio 20%.
China localisationrevenue, which was completed in 2018,is reported in the Corporate segment. The only remaining revenue in this segment relates to maintenance
revenue from Vista China.
1
EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition expenses, capital gains / losses, impairment losses and equity accounted results
from associates and joint venture companies. Depreciation and amortisation for the current period is$3.7m (June 2018: $3.1m after adjusting for NZ IFRS 16).
2
In order to provide a like-for-like comparison, the prior year comparative period has been adjusted for the impact of NZ IFRS 16 Leases.
FINANCIAL POSITION
12
Strong balance sheet maintained, giving
capacity to take advantage of new
opportunities and development, as well as
support the dividend program.
Contributors to the decrease in cash balance
include the settlement of the intercompany
balances with Vista China, fit-out costs for the
new Los Angeles office, and the
deconsolidation of the Stardust cash.
Per IFRS16 lease assets and liabilities have
been recognisedfor the first time in 2019, with
a $0.2m adverse impact to net assets at 30
June 2019.
Increase in intangibles driven by further
capitalisationof internally generated software,
offset by the derecognition of Stardust
balances.
Associates and joint ventures now includes
Stardust, with its results no longer being
consolidated.
NZ$m30 Jun 201931 Dec 2018
CURRENT ASSETS84.796.6
Cash
24.834.4
Trade & other receivables59.962.2
NON CURRENT ASSETS
134.4124.5
Property, plant& equipment5.65.4
Lease assets
4.7-
Investment in associates & joint ventures
32.231.9
Intangible assets86.684.4
Deferred tax asset5.32.8
TOTAL ASSETS
219.1221.1
Current liabilities41.443.7
Non-current borrowings11.711.9
Other non-current liabilities7.06.1
TOTAL LIABILITIES
60.161.7
NET ASSETS
158.9159.4
Share capital61.659.4
Retained earningsand other reserves
86.186.8
Non controlling interests11.213.2
TOTAL EQUITY
158.9159.4
CASH FLOW
13
22% increasein receipts from customers
driven byincreased revenues and the one-off
receipt of the Vista China receivable.
Increased payments to suppliers and staff
includes increased hardware cost of sales,
the one-off payment of Vista China payables,
and VAT paid on 2018 receivables.
Continued investmentin internally generated
software– primarily new products.
Other investing activities includes $2.4m
property plant and equipment, primarily
related to the fit-out of the new Los Angeles
office.
The fully imputed 2018final dividendof 2.10
cents per share was paid in March,
representing a 21% increase from the 2017
final dividend.
NZ$m30Jun201930 Jun2018
CASHFLOWS FROM OPERATING ACTIVITIES
7.512.5
Receipts from customers
74.461.2
Payments to suppliersand staff(60.5)(42.8)
Tax & interest(6.4)(5.9)
CASHFLOWSFROM INVESTING ACTIVITIES
(11.0)(4.6)
Investments in internally generated software(5.8)(4.0)
Derecognition of Stardust cash balances(1.5)-
Other investing activities(3.7)(0.6)
CASHFLOWSFROM FINANCING ACTIVITIES
(6.1)(3.2)
Reduction of lease liability
(1.9)-
Dividends paid to VGL shareholders
(3.5)(2.9)
Other financing activities(0.7)(0.3)
NET MOVEMENT IN CASH
(9.6)4.7
Cash at beginning of the period34.421.0
Foreign exchange differences-0.6
CASH AT END OF THE PERIOD
24.826.3
INTERIM DIVIDEND
14
•The company will pay an interim dividend of 1.2 cents per share, carrying full New
Zealand imputation credits, representing a total payment of $2.0m
•The dividend is at the top of Vista Group’s dividend policy range (50% of NPAT)
•The record date for the dividend will be5pm on Friday, 13 September 2019
•The payment date for the dividend will be Friday, 27 September 2019.
15
OPERATIONAL HIGHLIGHTS
CINEMA SEGMENT
16
$45.8 M
REVENUE
GROWTH +15%
7%
GROWTH IN TOTAL
SITES TO 7,683
34%
EBITDA%
$15.7M
EBITDA
1
GROWTH +13%
'-
300
600
900
1,200
2013201420152016201720182019 HY
NEW SITES ADDED
existing customersnew customersacquisitions
0
2,000
4,000
6,000
8,000
10,000
2013201420152016201720182019
TOTAL SITE COUNT
0
99
COUNTRIES
Vista Cinema provides cinema management software to the world’s largest
cinema exhibitors
•481new sites in H1 2019(including 89 sites in China), totalnow 7,683 sites
•Enterprise (+20 screens) market share 39.4% – excluding China 49.9%
•Total Market share (all cinemas) 30.3% - excluding China 39.0%
•Continued new product innovation – Serve (handheld server app), Horizon (full fidelity data warehouse)
and CXM (full digital offering)
•Additional revenue stream from 3
rd
parties $2.5m
•Agreements reached to transition reseller arrangements in Spain and South-East Asia
•Opportunities of scale in Brazil, Germany, Japan, and Eastern Europe.
49.9%
+20 MARKET SHARE.
EXCLUDING CHINA
1
In order to provide a like-for-like comparison, the prior year comparative period has been adjusted for the impact of NZ IFRS 16 Leases.
16% CHINA
6,728/41,476 screens
97% AUSTRALASIA
1,899/1,960 screens
34% EUROPE
7,016/20,401 screens
96% AFRICA
821/854 screens
39% SOUTH AMERICA
2,449/6,418 screens
98% CENTRAL AMERICA
7,386/7,556 screens
86% CANADA
2,082/2,436 screens
49% USA
16,897/34,512 screens
60% MIDDLE EAST
1,775/2,957 screens
39.4% WORLD WIDE
52,223/132,701 screens
36% ASIA (excl. CHINA)
5,120/14,131 screens
49.9 %
Excluding China
VISTA CINEMA WORLD SHARE
Vista Cinema percentage of the worldwide Enterprise segment (cinema exhibition companies with 20+ screens)
17
CINEMA SEGMENT - CONTINUED
18
266
CUSTOMERS
USING VGC
24%
REVENUE
GROWTH
Provides cinema management software to the world’s independent cinema
exhibitors
•83new sites bring total site numbers to 984– including China
•Revenue/site slightly lower at $581 per month – sensitive to Box Office variation
•USA growth driven by wins against generic POS
•Veezi now present in 45countries.
0
250
500
750
1,000
1,250
2013201420152016201720182019 HY
VEEZI –TOTAL SITE COUNT
$-
$150
$300
$450
$600
$750
2013201420152016201720182019
AVERAGE REVENUE PER MONTH
NZ$
19
$2.3 M$11.6 M
EBITDA GROWTH
4
+42%
REVENUE GROWTH
+35%
Movio Cinema
•Successful implementation of Aeon, Movio’s first Japanese cinema exhibitor
•Regional growth in LATAM of 43% and EMEA of 41% over pcp, increasing global footprint to 55 countries
•Adoption of Innovation Pricing
1
contracts increased from 25 to 47 during H1.
Movio Media
•Research revenue increased 118% over pcp, with the renewed contracts with Amazon, Warner Bros. and Viacom
•UK rollout ahead of schedule, with the Digital, Direct and Research product offerings all live in market, with STX signed.
Global leader in data-driven marketing, providing products and services to
exhibitors, studios and film advertising specialists
H1 highlights
H1 2019 v H1 2018 performance metrics
73%
Growthin Movio
Media revenue
9%
Growthin Connected
Moviegoers
2
to 9M
14%
Growthin Movio Cinema
revenue
24%
Growth in Connections
3
to
1.3B
1 Innovation Pricing provides Movio Cinema latest innovation for a fixed annual increase of circa 7%.
2 Connected Moviegoers are the subset of Active Moviegoers available for digital campaigns.
3 Connections are all SMS, mobile push, email and programmatic digital communications generated by Movio.
4 In order to provide a like-for-like comparison, the prior year comparative period has been adjusted for the impact of NZ IFRS 16Leases.
20
Active moviegoers
(Millions)
rev/Active moviegoers
(NZ cents)
RegionH12018H1 2019GrowthH1 2018H12019Growth
USA
20200%283940%
Rest of World
222617%14156%
Global
42468%202527%
Increase volume –Active Moviegoers
2
•Research confirmed cinema exhibitors using Movio Cinema saw global box office uplift of USD227M in 2018
1
•Implementation of the recently deployed non-member solution allowing exhibitors to build moviegoer profiles based on online ticket
purchases of non-loyalty members.
Increase Revenue per Active Moviegoer
2
•Global adoption of ‘Innovation Pricing’
•Continued iteration and territory expansion of the Movio Media Digital Campaign platform, enabling rapid deployment of digital marketing
campaigns already available in the US and UK.
Critical kpi’s & growth drivers
1 Research validated by Professor Donald Rubin, Emeritus Professor of Statistics, Harvard University.
2 Active Moviegoer is a moviegoer who has purchased at least one ticket to a movie from a participating exhibitor during the most recent rolling 12-month period.
ADDITIONAL GROUP COMPANIES (AGC) SEGMENT
21
World leading film marketing products
•Slow start – 8% revenue growth over pcp
•Created 19% more movie destination sites in
H1 2019
•Increase of 46% in views of sites over pcp
•'Trailered’ site launched to strong interest
•Strong pipeline of Facebook ‘Messenger’
opportunities.
Worldleading theatrical distribution software
•30% revenue growth over pcp– close to
break-even EBITDA
•More new customers signed in H1 2019 than
in all of 2018
•Joint sales propositions with Numero /
MaccsBox.
Movie and cinema review and showtime guide
•Unique visitors up 24% across New
Zealand and Australiaover pcp
•Revenue increase 24% over pcp
•Extending the lead as the largest
independent movie site in Australasia.
$7.8M
REVENUE
GROWTH+16%
$0 .6 M
EBITDA
1
DOWN29%
1
In order to provide a like-for-like comparison, the prior year comparative period has been adjusted for the impact of NZ IFRS 16 Leases.
EARLY STAGE INVESTMENTS(ESI) SEGMENT
22
Software to optimise film forecasting and
scheduling
•Slow start to 2019 with key projects slipping
into H2
•Penetration of Vista Cinema customer base
at 6%– big runway ahead
•Key integrations with Vista Cinema products
complete – with Film Manager and
MovieTeam.
A platform to share film digital assets & enable
new cinema ticketing sales channels
•MX Film good progress – servicing 10,000
screens with content – and integrating with
group companies to deliver consistent film
database
•Drop in MX Tickets revenue due to demise of
MoviePass.
$1.3M
REVENUE
DOWN44%
($1.0 M)
EBITDA
LOSS
ASSOCIATEAND JOINT VENTURE COMPANIES
Box office tracking and reporting product
•Overall business approaching break-even
•International dashboards nowlive in21 countries
•USA coverage significantly increased
•Revenue growth 44% over pcp
•Numero requires ongoing support from Vista Group –provision made for all advances
during 2019.
23
Social app to share video reaction to movies and TV shows
•Stardust became associate company in February 2019
•Continued development of features to grow user count.
Performance
•Revenue of NZD9.1m, 4% up on the pcp, profitable at EBITDA level (operating loss after prior period tax
adjustment)
•89 new sites added – 41% from existing customers. Total sites now 1,047
•Vista China market share of Enterprise segment estimated as 16.2%
•Top 5 circuit Stellar rolloutongoing.
China film industry
•Continued domination by 3
rd
party ticket sellers – Maoyanand Tao Piaopiaoremain the top 2
•3,492 new cinema screens were built in 1
st
half 2019, taking the total to nearly 65,000.
Update on structure
•We are in advanced negotiations with Weying (our partner) to purchase an increased stake in Vista China
•This will enable consolidation of Vista China into the Vista Group’s results
•We anticipate increasing our banking facilities in order to fund this purchase
•Transactions are subject to reaching final agreement and obtaining regulatory approvals – timing
uncertain.
24
VISTA CHINA
ASSOCIATE AND JOINT VENTURE COMPANIES
25
OUTLOOK
•We are targeting revenue growth for the core businesses – Vista Cinema and
Movio combined – to be in the region of 14-18% for 2019 with a continuation of the
strong H1 EBITDA performance
•We are targeting overall Vista Group revenue growth for 2019 to be in the region
of 10-12% chiefly influenced by the continuation of reduction in revenue from
movieXchange and Vista China, and the delay in consolidation of Numero
•Over time we will be targeting Vista Group revenue growth in the region of 13% to
18% as the business grows (excluding any acquisitions)
•We expect Vista Chinato continue perform well in a challenging market
•The Executive Team and Board are unanimous in their support for accelerating
the transformation of Vista Cinema to a pure SaaS future.
26
TRANSFORMATION OF VISTA CINEMA TO SAAS
We are very pleased to have the unanimous support of the Executive Team and Board in accelerating the
transformation of Vista Cinema to a pure SaaS future
•Vista Cinema is committed to investing to significantly accelerate the transformation to SaaS
•The acceleration is being driven by strong demand from customers and prospects
•Significant engineering, commercial, and organisational change is under way and will continue
•The faster we achieve the transformation – the faster the benefits accrue – for our customers, for our people, for
Vista Group, and for our shareholders.
Our goal is to deliver a multi-tenant SaaS product
for cinema circuits and cinemas of all sizes.
DEFINITIONS
27
ConceptLicense TypeWhere is the software
Who manages the
software
Copies of the softwareIncremental Revenue for Vista
On PremisesPerpetualCustomer premisesCustomerOne per customerNo
SubscriptionRight to useVariesCustomerOne per customerYes – over time
HostedVariesPublic or private cloudCustomerOne per customerNo
ManagedVariesPublic or private cloudVistaOne per customerYes – immediately
SaaSRight to usePublic or private cloudVistaOne per customerYes – immediately
SaaS Multi-tenantRight to usePublic or private cloudVistaOne per many customersYes – immediately
Year
What we said
Milestones
Work
2017
Offer customers
choice – on
premises or
hosted
Back Office
converted to
browser
Convert C/S apps
to Browser
Engineering for
Hosting
2018
Application is
Hostable
First Customers
live – hosted
Convert C/S apps
to Browser
Engineering for
Hosting
2019
Application
Hostable &
Managed
First customers
live – managed.
12% of sites on
subscription.
Convert C/S apps
to Browser
Engineering for
Hosting
BACKGROUND – PROGRESS TO DATE
•Our initial objective was to
offer customers choice
•The project was initiated on
a BAU basis –i.e. in
parallel with ‘normal’
business. This has still
been the case in H1 2019
•We have not been working
to a specific timeframe as
initial indications were that
customers were uncertain.
They are now very
supportive
•We have made significant
progress since early 2017
with transformation of a
large number of Client
Server (C/S) apps and a lot
of underlying engineering.
28
BENEFITS OF MOVING TO CLOUD/SAAS
29
INNOVATION
CLOUD / SAAS
Increased
velocity of
product changes
BENEFIT TO
CLIENTS
Speed of
updating delivers
innovation
constantly
BENEFIT TO
VISTA CINEMA
Investment in
innovation
valued more
highly
BENEFIT TO
VISTA CINEMA
Much easier to
upgrade and
cross sell
modules
ON PREMISES
Implementing
innovation requires
upgrade
BENEFITS OF MOVING TO CLOUD/SAAS
30
ACCESSIBILITY
CLOUD / SAAS
Access for new
cinemas and
users can be as
simple as a
browser
BENEFIT TO
CLIENTS
Able to expand
use more easily
BENEFIT TO
VISTA CINEMA
Customers able
to expand use
more easily
BENEFIT TO
VISTA CINEMA
New customers
can get live
faster
ON PREMISES
Implementation
requires new
equipment and
software downloads
OUR TIMETABLE
31
2019
• Resource additional project teams
• Resource management teams
• Build pipeline of managed service
prospects – both new and existing
• Continue engineering.
2020
• Continue Engineering – including
some outsourced
• Complete browser / app
transformation
• Prioritisesubscription based
managed services offers
• Year of maximum investment in
transformation.
2021
• Multi-tenant SaaS in market during
2021
• Encourage SaaS as first choice with
customers and prospects
• Review low cost offering for
independent cinemas.
TRANSFORMATION OF VISTA CINEMA
32
The benefits of a multi-tenant SaaS product offering are well understood, they include:
•It creates the platform for operating leverage for Vista Cinema. We expect
ongoing improvement in EBITDA quality
•It will enable customers to benefit much more quickly from Vista Cinema
innovation
•It will increase the ease with which customers can sign up to other Vista Group
company offerings
•It will enable Vista Cinema to continue to attract top technical and design talent.
We are investing to accelerate delivery of these benefits and to provide greater certainty
in timing for our customers.
33
• Our core businesses (Vista Cinema and Movio) are in excellent shape,
and the outlook for them is strong
• We are setting a timetable and commitment to transform Vista Cinema to
a pure SaaS future as quickly as we can
• We are very pleased at the prospect of Vista China ‘re-joining the family’
• We have a strong balance sheet, strong client relationships, and a great
future with new products and the transformation of Vista Cinema.
SUMMARY
QUESTIONS
34
THANK YOU
35
---
vistagroup.co
INTERNATIONAL LIMITED
INTERIM
REPORT
2019
VISTA GROUP
01 Management Commentary
03 Statement of Comprehensive Income
04 Statement of Changes in Equity
05 Statement of Financial Position
06 Statement of Cashflows
07 Notes to the Financial Statements
TABLE OF
CONTENTS
MANAGEMENT COMMENTARY
The following consolidated interim financial statements for Vista Group International Limited (the ‘Company’ and
its subsidiaries, collectively ‘Vista Group’), are for the six months ended 30 June 2019 and represent the half year
results for Vista Group.
FINANCIAL HIGHLIGHTS
• Continued excellent performance from Vista Group’s core businesses (Vista Cinema and Movio), with 19% growth
in revenue and 16% growth in like for like
(1)
EBITDA
(2)
over previous corresponding period (pcp)
• Consolidated Vista Group revenue of $67.5m (12% growth over pcp), impacted by a reduction in movieXchange
revenue ($0.9m) due to the decline of MoviePass, and the reduction in localisation revenue from Vista China ($1.9m)
• $11.8m Vista Group EBITDA
(2)
, a 19% reduction (like for like)
(1)
over pcp, impacted by the decline in movieXchange
revenue ($0.9m), the reduction in localisation revenue from Vista China ($1.9m), and an adverse foreign
exchange comparative ($0.8m)
• Profit before tax of $6.2m, a 32% reduction (like for like)
(1)
over pcp
• $24.8m available cash balance, puts Vista Group in a strong position to capitalise on future opportunities
• Vista Group to pay a fully imputed interim dividend of 1.2 cents per share on Friday 27 September 2019. This is
at the top end of the range of the dividend pay-out policy.
OPERATING HIGHLIGHTS
• Vista Cinema global market share of Enterprise (20+ screens) excluding China reached 49.9% (39.4% including China)
• Vista Cinema global market share of total screens
(3)
increased to 30.3% as at 30 June 2019 (39.0% excluding China)
• 481 new Vista Cinema sites (including 89 sites in China), total now 7,683 sites
• 14% increase in Vista Group recurring revenue over pcp to $41.1m — representing 61% of total revenue
• 83 new Veezi sites, total now 984 sites
• Movio revenue per Active Moviegoer
(4)
grew by 27% over pcp to NZ$0.25
• Movio Media revenue grew by 73% over pcp.
OPERATIONAL AND PRODUCT OVERVIEW
Cinema
Vista Cinema delivered a strong first half, highlighted by the successful implementation and go-live of 90 sites
with Marcus Theatres in the US. Vista Cinema now has customers in 99 countries worldwide. Revenue expansion
continues with the launch of new products Serve, Horizon and expansion of our hardware offering. Serve allows
our exhibitors to sell food and beverages in seated areas of cinemas and Horizon provides customers with a next-
level business intelligence experience delivering real-time operational data insights that enable cinemas to make
informed decisions faster.
Movio
Movio Cinema increased its global footprint to 55 countries, growing revenue 14% in the process. Achievements
included the successful implementation of Aeon, Movio’s first Japanese cinema exhibitor; regional growth in LATAM
of 43% and in EMEA of 41%. Movio Media revenue delivered another strong performance due to an increase in
Research revenue and renewed contracts with Amazon, Warner Bros. and Viacom. Movio Media’s expansion into
the UK is ahead of schedule, with the Digital, Direct and Research product offerings live in that market.
Additional Group Companies (AGC)
Performance in the AGC’s was mixed, with revenues increasing modestly, but the like for like
(1)
EBITDA
(2)
slightly
down. Powster continues to steadily obtain revenue growth from their showtimes platform, though creative
projects targeted for the first half are now pushed to later in the year. Although small in the Group context, the
Maccs business had a strong first half and good order books in the near term. New deals signed in July 2019 as well
as exhibitor reporting expansion via collaboration with Vista Cinema in Europe provides an encouraging outlook
for the second half of the year. 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.
01
VISTA GROUP INTERNATIONAL LIMITED
Early Stage Investments (ESI)
Revenue from ESI fell back from the pcp, with revenue from Cinema Intelligence dropping due to a one-off prior
year transaction and revenue in movieXchange dropping due to the decline of MoviePass, a key ticketing partner
for movieXchange tickets. Consequently, EBITDA
(2)
reduced with a loss for the half. Cinema Intelligence is expected
to have an improved second half of 2019.
ASSOCIATES AND JOINT VENTURES
Numero achieved strong revenue growth over pcp. The business has launched the PreSales reporting platform and
has also started providing services in multiple countries, bringing their global coverage up to 22 territories.
Vista China continues to perform satisfactorily, despite a drop in both the local box office and admissions in
1H2019. Revenue was 4% up over pcp and good cost management delivered a positive EBITDA
(2)
result. The 1H2019
highlight was the addition of 89 new sites. Vista Group is in advanced negotiations with its fellow shareholder to
acquire a controlling stake in Vista China, expected to be funded from working capital and bank facilities.
Stardust is not consolidated due to a change in the composition of its Board and Vista Group no longer exercising
control over the business. It continues to focus on product enhancements to expand its reach to avid moviegoers.
TRANSFORMATION OF VISTA CINEMA TO SAAS
Vista Group will embark on a transformational investment beginning in the second half of 2019 to migrate Vista
Cinema to a pure SaaS future. The investment will accelerate the process begun in 2017. Our goal is simple — to
deliver a multi-tenant SaaS product for cinema circuits and cinemas of all sizes, in all countries, as fast as we can.
We aim to have this in market in 2021, with both new and existing customers transitioning. This will drive our vision
to help transform the entire film industry, deploy to customers more quickly, deliver functionality in real-time and
create the platform for operating leverage in future years.
IMPACT OF NEW LEASE ACCOUNTING STANDARD
NZ IFRS 16 Leases is effective for reporting periods beginning on or after 1 January 2019. In accordance with the
standard, the prior period comparative has not been restated. Full disclosure of the impact of this standard on
both the current and prior periods, on both a consolidated and segmental basis, are included within section 9
of the following interim financial statements.
OVERALL SUMMARY AND OUTLOOK
In summary, our core businesses continue to perform strongly with potential for improvement in AGC in the second
half of the year. Vista Group is targeting:
• Revenue growth for Vista Group’s core businesses (Vista Cinema and Movio) to be in the region of 14-18% for
2019 with a continuation of the 1H2019 EBITDA
(2)
performance;
• Vista Group consolidated revenue growth to be in the region of 10-12% for 2019, mainly influenced by
the reduction in movieXchange revenue, the reduction in revenue from Vista China, and the delay in the
consolidation of Numero; in the longer term, Vista Group revenue to be in the region of 13-18% annually
as it grows (excluding any acquisitions).
(1) To enable a like for like comparison, 1H2018 has been adjusted to include the impact of NZ IFRS 16. See section 9 of the following interim
financial statements for full details on the impact of adopting NZ IFRS 16 on both the current and prior periods.
(2) EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition
costs, capital gains/losses, impairment losses and equity accounted results from associates and joint venture companies.
(3) Global market share of screens is the percentage of all screens globally in respect of which Vista Cinema software is used.
(4) Active Moviegoer is a moviegoer who has purchased at least one ticket to a movie from a participating exhibitor during the most recent
rolling 12-month period.
02
INTERIM FINANCIAL STATEMENTS 2019
STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS ENDED 30 JUNE 2019
30 JUNE 201930 JUNE 2018
NZ$’000NZ$’000
SECTIONUNAUDITEDUNAUDITED
Total revenue167,511 60,112
Sales and marketing expenses5,486 4,507
Operating expenses31,606 27,570
Administration expenses22,387 17,633
Acquisition expenses59 93
Foreign currency gains (16)(829)
Total expenses 59,522 48,974
Operating profit7,989 11,138
Finance costs(679)(509)
Finance income290 185
Share of loss from associates and joint ventures2(1,562)(1,731)
Capital gain — Stardust2119 -
Profit before tax6,157 9,083
Tax expense (2,057)(3,313)
Profit for the period 4,100 5,770
Profit for the period is attributable to:
Owners of the parent4,030 5,214
Non-controlling interests 70 556
Profit for the period 4,100 5,770
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations, net of tax (353)1,658
Total comprehensive income for the period 3,747 7,428
Total comprehensive income for the period is attributable to:
Owners of the parent3,678 6,721
Non-controlling interests 69 707
Total comprehensive income for the period 3,747 7,428
Earnings per share for profit attributable to the equity holders of the parent
Basic (cents per share)$0.02 $0.03
Diluted (cents per share) $0.02 $0.03
The above statement should be read in conjunction with the accompanying notes.
03
VISTA GROUP INTERNATIONAL LIMITED
ATTRIBUTABLE TO THE OWNERS OF THE PARENT
CONTRIBUTED
EQUITY
RETAINED
EARNINGS
FOREIGN
CURRENCY
RESERVE
SHARE-BASED
PAYMENT
RESERVETOTAL
NON-
CONTROLLING
INTERESTS
TOTAL
EQUITY
SECTIONNZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITED
Balance at 31 December 201859,37880,8373,2022,795146,21213,184159,396
Accounting policy change9-(357)--(357)(62)(419)
Restated total equity59,37880,4803,2022,795145,85513,122158,977
Profit for the period-4,030--4,030704,100
Other comprehensive income--(352)-(352)(1)(353)
Total comprehensive income-4,030(352)-3,678693,747
Non-controlling interest change-----(1,299)(1,299)
Share-based payments2,211--(497)1,714-1,714
Dividends paid7-(3,476)--(3,476)(725)(4,201)
Balance at 30 June 201961,58981,0342,8502,298147,77111,167158,938
UNAUDITED
Balance at 31 December 201757,82175,2062,1011,749136,87711,224148,101
Accounting policy change-(1,295)--(1,295)(40)(1,335)
Restated total equity57,82173,9112,1011,749135,58211,184146,766
Profit for the period-5,214--5,2145565,770
Other comprehensive income--1,507-1,5071511,658
Total comprehensive income-5,2141,507-6,7217077,428
Issue of equity-----100100
Share-based payments841--3941,235(1)1,234
Dividends paid7-(2,861)--(2,861)(563)(3,424)
VCL share based
payment589--(524)65-65
Balance at 30 June 201859,25176,2643,6081,619140,74211,427152,169
The above statement should be read in conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
SIX MONTHS ENDED 30 JUNE 2019
04
INTERIM FINANCIAL STATEMENTS 2019
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
SECTIONUNAUDITEDAUDITED
CURRENT ASSETS
Cash24,81834,353
Trade and other receivables458,09061,353
Income tax receivable 1,821919
Total current assets84,72996,625
NON-CURRENT ASSETS
Property, plant and equipment5,5975,358
Lease assets64,743-
Investment in associates and joint ventures232,22131,879
Goodwill363,81363,947
Other intangible assets522,70620,441
Deferred tax asset5,2722,836
Total non-current assets 134,352124,461
Total assets 219,081221,086
CURRENT LIABILITIES
Trade and other payables12,66218,602
Lease liabilities62,446-
Deferred revenue24,30421,396
Borrowings related party223-
Income tax payable 1,7463,729
Total current liabilities41,38143,727
NON-CURRENT LIABILITIES
Borrowings related party659868
Borrowings external11,03211,076
Lease liabilities63,012-
Deferred revenue1,2214,491
Provisions528508
Deferred tax liability 2,3101,020
Total non-current liabilities 18,76217,963
Total liabilities 60,14361,690
Net assets 158,938159,396
EQUITY
Contributed equity61,58959,378
Retained earnings81,03480,837
Foreign currency reserve2,8503,202
Share-based payment reserve 2,2982,795
Total equity attributable to owners of the parent147,771146,212
Non-controlling interests 11,16713,184
Total equity 158,938159,396
For and on behalf of the Board who authorised these financial statements for issue on 29 August 2019.
Kirk Senior Chairman Susan Peterson Chair Audit and Risk Committee
The above statement should be read in conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
05
VISTA GROUP INTERNATIONAL LIMITED
30 JUNE 201930 JUNE 2018
NZ$’000NZ$’000
SECTIONUNAUDITEDUNAUDITED
CASHFLOWS FROM OPERATING ACTIVITIES
Receipts from customers74,410 61,213
Interest received-185
Payments to suppliers(60,536)(42,834)
Taxes paid(5,989)(5,741)
Interest paid (398)(323)
Net cash inflow from operating activities 7,487 12,500
CASHFLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment(2,433)(1,480)
Internally generated software and other intangibles5(5,788)(4,032)
Proceeds from disposal of intangibles5-1,388
Related party loan advance — Numero2(644)(667)
Funding provided to associates and joint ventures(543)-
Derecognition of Stardust cash balances(1,545)-
Proceeds from Vista China transaction -165
Net cash applied to investing activities (10,953)(4,626)
CASHFLOWS FROM FINANCING ACTIVITIES
Reduction of lease liability6(1,861)-
Loans and borrowings-261
Dividends paid to non-controlling interest(725)(563)
Dividends paid to the owners of the parent7(3,476)(2,861)
Net cash applied to financing activities (6,062)(3,163)
Net (decrease)/increase in cash (9,528)4,711
Cash at the beginning of the period34,353 20,954
Foreign exchange differences (7)631
Cash at the end of the period 24,818 26,296
The above statement should be read in conjunction with the accompanying notes.
STATEMENT OF CASHFLOWS
SIX MONTHS ENDED 30 JUNE 2019
06
INTERIM FINANCIAL STATEMENTS 2019
1. OPERATING SEGMENTS
Vista Group operates in the vertical cinema/film market via four operating segments and a corporate segment.
The Chief Executive and the Board of Vista Group are considered to be the Chief Operating Decision Maker
(CODM) in terms of NZ IFRS 8 Operating Segments. These segments have been defined based on the reports
regularly reviewed by the CODM to make strategic decisions.
The Cinema segment includes software associated with cinema management via the Vista software suite of
products, plus the cloud based Veezi product for smaller scale cinemas. The Movio segment includes Movio
Cinema and Movio Media that provide data analytics and campaign management. The Additional Group
Companies segment is an aggregation of the Maccs, Powster and Flicks businesses, none of which individually
exceed the 10% threshold for segment revenue or profitability that would require disclosure under NZ IFRS 8.
The Early Stage Investments segment includes businesses that are in the start-up phase of their life cycle.
This segment includes MovieXchange, Share Dimension (Cinema Intelligence) and Stardust until 25 February 2019,
at which date the entity no longer meets the requirements for control (see section 2). Similar to the Additional
Group Companies segment, none of the businesses included in this segment individually exceed the 10% threshold
for segment revenue or profitability that would require disclosure under NZ IFRS 8. The Corporate segment
contains the shared services functions associated with Vista Group International, being legal, finance, and senior
management. Revenue received from the associate company Vista Entertainment Solutions (Shanghai) Limited
(Vista China) was recognised within the corporate segment.
The CODM does not regularly review segment assets and liabilities and therefore no such details are provided below.
30 JUNE 2019 UNAUDITED
CINEMAMOVIO
ADDITIONAL
GROUP
COMPANIES
EARLY STAGE
INVESTMENTS
(1)
CORPORATETOTAL
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
Timing of revenue recognition
At a point in time19,538 4,204 1,357 741 -25,840
Over time26,294 7,394 6,430 520 1,033 41,671
Total revenue45,832 11,598 7,787 1,261 1,033 67,511
Operating expenses(21,427)(5,000)(3,820)(1,266)(93)(31,606)
Sales, marketing and admin expenses(8,753)(4,316)(3,356)(986)(6,716)(24,127)
Foreign currency gains/(losses)16 26 (42)(1)17 16
EBITDA
(2)
15,668 2,308 569 (992)(5,759)11,794
30 JUNE 2018 UNAUDITED
CINEMAMOVIO
ADDITIONAL
GROUP
COMPANIES
EARLY STAGE
INVESTMENTSCORPORATETOTAL
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
Timing of revenue recognition
At a point in time16,0853,3428951,849-22,171
Over time23,6175,2235,8253922,88437,941
Total revenue39,7028,5656,7202,2412,88460,112
Operating expenses(19,360)(3,892)(3,440)(785)(93)(27,570)
Sales, marketing and admin expenses(8,620)(3,220)(2,734)(1,036)(4,646)(20,256)
Foreign currency gains/(losses)1,075702337(376)829
EBITDA
(2)
12,7971,523569457(2,231)13,115
NOTES TO THE FINANCIAL STATEMENTS
(1) Includes results of Stardust until 25 February 2019, at which date the entity no longer meets the requirements for control (see section 2).
(2) EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition
expenses, capital gains/losses, impairment losses and equity accounted results from associates and joint venture companies.
07
VISTA GROUP INTERNATIONAL LIMITED
Reconciliation of EBITDA to profit before tax
30 JUNE 201930 JUNE 2018
NZ$’000NZ$’000
UNAUDITEDUNAUDITED
EBITDA
(2)
11,794 13,115
Depreciation and amortisation(3,746)(1,884)
EBIT
(3)
8,048 11,231
Finance income290 185
Finance costs
(679)
(509)
Acquisition expenses(59)(93)
Share of loss from associates and joint ventures(1,562)(1,731)
Capital gain — Stardust119 -
Profit before tax6,157 9,083
Revenue by source
30 JUNE 201930 JUNE 2018
NZ$’000NZ$’000
UNAUDITEDUNAUDITED
Product33,729 28,788
Maintenance22,634 20,940
Services6,456 5,525
Development2,055 3,375
Hardware2,533 -
Other104 1,484
Total revenue67,511 60,112
Revenue by domicile of entity
Vista Group recognises revenue within entities across several jurisdictions. Revenue is allocated to geographical
regions based on where the sale is recorded by each operating entity within Vista Group. Independent resellers are
used to promote Vista Group’s products in multiple jurisdictions. The revenues recognised via these independent
resellers are not allocated geographically, rather they are shown within the New Zealand and United Kingdom
jurisdictions based on the location of the transacting Vista Group entity.
The Other category in the tables below include entities in the Netherlands, Germany, Romania and South Africa.
The comparatives below have been restated to separately disclose Mexico.
30 JUNE 2019
RESTATED
30 JUNE 2018
NZ$’000NZ$’000
UNAUDITEDUNAUDITED
New Zealand 13,37015,970
United States 28,03619,687
United Kingdom 15,68713,144
Mexico 6,4377,727
Other 3,9813,584
Total revenue 67,51160,112
(2) EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition
expenses, capital gains/losses, impairment losses and equity accounted results from associates and joint venture companies.
(3) EBIT is a non-GAAP measure and is defined as earnings before net finance costs, income tax, acquisition expenses, capital gains/losses,
impairment losses and equity accounted results from associates and joint venture companies.
08
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
Non-current assets by domicile of entity
Non-current operating assets by location of the reporting entity are presented in the following table:
30 JUNE 2019
RESTATED
31 DECEMBER 2018
NZ$’000NZ$’000
UNAUDITEDAUDITED
New Zealand 43,98241,558
United States 10,1558,531
United Kingdom 10,3838,788
Mexico 11,41611,370
Other 20,92319,499
As required by NZ IFRS 8, the table above excludes deferred tax assets (the comparatives have been restated
accordingly). Investment in associates and joint ventures have also been excluded as they are not consolidated.
2. ASSOCIATES AND JOINT VENTURE COMPANIES
STARDUST
On 25 February 2019, Vista Group entered into agreements that resulted in Stardust Solutions Limited (Stardust)
no longer meeting the requirements for control under NZ IFRS 10 Consolidated Financial Statements. Under
the terms of the amended shareholders’ agreement, Vista Group no longer have an entitlement to appoint a
majority of the Directors, nor to solely appoint the CEO. Holding two Board seats out of four enables Vista Group
to exercise significant influence over Stardust and therefore classifies this entity as a joint venture. Vista Group
ceased to consolidate Stardust as of 25 February 2019 with its shareholding remaining unchanged at 58.88%.
On 25 February 2019, the carrying value of Stardust’s net assets were $3.2m. The fair value of the retained 58.88%
shareholding in Stardust required management judgement with the intellectual property being calculated using
a “cost to replace” valuation model (a level 3 fair value measurement technique). Vista Group recognised a $0.1m
gain on deconsolidation, calculated as follows:
30 JUNE 2019
NZ$’000
UNAUDITED
Fair value of the 58.88% of Stardust retained by Vista Group1,978
Less: carrying value of net assets of Stardust (3,157)
Add: carrying value of non-controlling interests1,298
Capital gain on deconsolidation of Stardust 119
Income tax expense-
Capital gain on deconsolidation of Stardust 119
09
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Carrying values
VISTA CHINASTARDUST
30 JUNE 201931 DECEMBER 201830 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDAUDITEDUNAUDITEDAUDITED
Opening net assets 24,57528,725--
Net assets of Stardust at 25 February 2019 --3,157-
Loss for the period (1,341)(4,150)(477)-
Dividends declared (1,512)---
Closing net assets21,72224,5752,680-
Vista Group interest 47.50%47.50%58.88%-
Vista Group share 10,31811,6731,578-
Goodwill20,20620,206119-
Carrying values 30,52431,8791,697-
Stardust was consolidated as a subsidiary for the period through 25 February 2019. During this period the entity
contributed no revenue and $0.1m loss after tax. Vista Group recognised an equity accounted loss for the period
after which Stardust ceased to be consolidated of $0.3m.
The carrying value of Numero at 30 June 2019 was $nil (31 December 2018: $nil). The following disclosures do not
include Numero as it is not deemed to be a material associated company of Vista Group.
Summarised financial positions
A summarised Statement of Financial Position as at 30 June 2019 is presented below:
VISTA CHINASTARDUST
30 JUNE 201931 DECEMBER 201830 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDAUDITEDUNAUDITEDAUDITED
Cash16,66526,3661,5281,545
Trade and other receivables8,25511,5821628
Total current assets24,92037,9481,6901,553
Total non-current assets5,0771,3156,0551,901
Total assets29,99739,2637,7453,454
Total current liabilities(6,800)(13,221)(5,054)(125)
Total non-current liabilities(263)(18)--
Total liabilities(7,063)(13,239)(5,054)(125)
Effect of translation(1,212)(1,449)(11)(31)
Net assets21,72224,5752,6803,298
On 30 January 2019, Vista China provided a retention accommodation loan of $4.3m to the CEO of Vista China.
This loan is interest free, secured against equity in Vista China and matures on 30 January 2022.
10
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
Summarised trading results
A summarised Statement of Comprehensive Income and a reconciliation to the equity accounted loss recognised
in Vista Group is detailed below for the six months ended 30 June 2019. This has been amended to reflect
adjustments made to align the associates and joint venture company accounting policies to Vista Group
accounting policies.
VISTA CHINASTARDUST
30 JUNE 201930 JUNE 201830 JUNE 201930 JUNE 2018
NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITED
Revenue9,0858,720--
Total expenses(10,426)(11,411)(477)(347)
Loss for the period(1,341)(2,691)(477)(347)
Vista Group equity accounted interest 47.50%39.53%58.88%0.00%
Vista Group equity accounted loss for the period(637)(1,064)(281)-
Related parties
The associates and joint venture company related party balances are detailed in the table below:
NUMEROVISTA CHINASTARDUST
30 JUNE 201931 DECEMBER 201830 JUNE 201931 DECEMBER 201830 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDAUDITEDUNAUDITEDAUDITEDUNAUDITEDAUDITED
Related party receivable--5716,8383,354-
Related party payable--(44)(4,791)(2,291)-
Related party loan9,0308,386----
Provision for impairment(3,617)(2,973)----
Net receivable5,4135,4135272,0471,063-
Related party transactions for the 6 months ended 30 June 2019 were as follows:
NUMEROVISTA CHINASTARDUST
30 JUNE 201930 JUNE 201830 JUNE 201930 JUNE 201830 JUNE 201930 JUNE 2018
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITED
Development fees315253-1,851--
License fees203221----
Maintenance fees--1,0331,033--
Interest on loan219130----
Dividend to Vista Group--719---
Other advances(93)63644611-
Total recharges6446671,8162,888611-
During the period, Vista Group recognised $1.0m of revenue from Vista China (30 June 2018: $2.9m). At the end
of the period, a further $0.3m remains as deferred revenue (30 June 2018: $4.4m).
11
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
3. GOODWILL
The amount of goodwill initially recognised is dependent on the allocation of the purchase price to the fair value
of the identifiable assets acquired and the liabilities assumed. The determination of the fair value of the assets and
liabilities, particularly intangible assets is based, to a considerable extent, on management’s judgement.
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
UNAUDITEDAUDITED
Gross carrying amount
Balance at 1 January 67,50166,398
Exchange differences (134)1,103
Gross carrying amount at period end 67,36767,501
Accumulated impairment
Balance at 1 January (3,554)(3,554)
Accumulated impairment at period end (3,554)(3,554)
Goodwill at period end 63,81363,947
Goodwill has been allocated to the following Cash Generating Units (CGU):
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
UNAUDITEDAUDITED
Vista Entertainment Solutions Limited (VESL) 24,39324,414
Virtual Concepts Limited (VCL) — (Movio) 16,97016,970
Maccs International BV (Maccs) 12,47312,564
Share Dimension BV (Cinema Intelligence) 1,9561,972
Powster Limited (Powster) 7,4177,423
Flicks.co.nz Limited (Flicks) 604604
Goodwill at period end 63,81363,947
This is the lowest level at which goodwill is monitored for internal management reporting purposes. Value in use
calculations are used in determining the recoverable amount of each CGU. Management has projected the cash
flows for each CGU over a five-year period based on approved budgets for the first year. Determination of
appropriate post-tax cash flows, terminal growth rates and discount rates for the calculation of value in use is
subjective and requires a number of assumptions and estimates to be made, including growth in revenue and net
profit, timing and quantum of future capital expenditure, working capital, long term growth rates and the selection
of discount rates to reflect the risks involved.
12
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
4. TRADE AND OTHER RECEIVABLES
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
SECTIONUNAUDITEDAUDITED
Trade receivables 35,28644,293
Sundry receivables 4,4543,877
Accrued revenue 7,8284,853
Prepayments 4,0462,917
Related party loan — Numero25,4135,413
Related party loan — Stardust 1,063-
Total trade and other receivables 58,09061,353
Vista Group has recognised a loss of $0.1m (31 December 2018: $0.2m) in respect of bad debts during the period.
The impairment allowance included in trade receivables was $0.8m (31 December 2018: $0.8m). The related party
loan to Numero is presented net of the $3.6m provision for impairment (31 December 2018: $3.0m), see section
2 for further details. Included within trade receivables is $0.5m receivable from Vista China (31 December 2018:
$6.8m), see section 2 for further details.
The following table summarises the impact of doubtful debts and expected credit loss provision on the trade
receivables balance.
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
UNAUDITEDAUDITED
Trade receivables — gross 36,46846,191
Expected credit loss provision (415)(1,086)
Doubtful debts provision (767)(812)
Trade receivables — net of provisions 35,28644,293
The movement in the provision for doubtful debts during the period was as follows:
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
UNAUDITEDAUDITED
Balance at 1 January (812)(976)
Bad debts written off 111179
Change in provision (66)(15)
Provision for doubtful debts at period end (767)(812)
13
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
5. OTHER INTANGIBLE ASSETS
30 JUNE 2019 UNAUDITED
INTERNALLY
GENERATED
SOFTWARE
SOFTWARE
LICENSES
INTELLECTUAL
PROPERTY
CUSTOMER
RELATIONSHIPSTOTAL
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
Gross carrying amount
Balance at 1 January17,7292,6262,1814,86627,402
Internally generated software5,606---5,606
Additions--182-182
Disposals(2,121)(15)--(2,136)
Exchange differences(3)(13)(7)(27)(50)
Balance at period end21,2112,5982,3564,83931,004
Accumulated amortisation
Balance at 1 January(1,886)(1,239)(996)(2,840)(6,961)
Amortisation(814)(84)(136)(326)(1,360)
Disposals-4--4
Exchange differences(1)631119
Balance at period end(2,701)(1,313)(1,129)(3,155)(8,298)
Carrying amount at 30 June 201918,5101,2851,2271,68422,706
31 DECEMBER 2018 AUDITED
INTERNALLY
GENERATED
SOFTWARE
SOFTWARE
LICENSES
INTELLECTUAL
PROPERTY
CUSTOMER
RELATIONSHIPSTOTAL
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
Gross carrying amount
Balance at 1 January9,7622,6452,1367,80822,351
Internally generated software7,888---7,888
Additions--26-26
Disposals---(3,076)(3,076)
Exchange differences79(19)19134213
Balance at year end17,7292,6262,1814,86627,402
Accumulated amortisation
Balance at 1 January(626)(1,068)(725)(3,871)(6,290)
Amortisation(1,261)(182)(257)(780)(2,480)
Disposals---1,7661,766
Exchange differences111(14)4543
Balance at year end(1,886)(1,239)(996)(2,840)(6,961)
Carrying amount at 31 December 201815,8431,3871,1852,02620,441
On 23 March 2018, Vista Group announced the termination of the French market distribution agreement with Cote
Cine Group (CCG). This resulted in the disposal of the customer relationship previously recognised. A settlement
payment of $1.4m was received. A net gain on disposal of $29,000 was recognised within administrative expenses.
14
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
6. LEASE ASSETS AND LIABILITIES
Recognition and measurement of Vista Group’s leasing activities
Vista Group predominantly leases property for fixed periods of 1-7 years, but may have extension options.
These extension options are usually at the discretion of Vista Group and are included in the measurement of the
lease asset if management intends to exercise the extension. Lease terms are negotiated on an individual basis
and contain a variety of terms and conditions. However, these lease agreements do not impose any covenants.
Prior to 31 December 2018, leases of property, plant and equipment were classified as either finance or operating
leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to
profit or loss on a straight-line basis over the period of the lease.
From 1 January 2019, leases are recognised as a right of use asset (lease asset) and a corresponding liability at
the date at which the leased asset is available for use by Vista Group. Each lease payment is allocated between
the liability and finance cost. The finance cost is charged to profit or loss over the lease period. The lease asset
is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payments that are based on an index or a rate
• amounts expected to be payable by the lessee under residual value guarantees
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the lessee’s incremental borrowing rate, being the rate that the lessee
would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.
Lease assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability
• any lease payments made at or before the commencement date less any lease incentives received
• any initial direct costs, and
• restoration costs.
See section 9 for more information on adjustments recognised on adoption of NZ IFRS 16 Leases, practical
expedients applied and the impact of first-time adoption of NZ IFRS 16 on these financial statements.
Lease assets
Vista Group lease assets predominantly comprising property leases. Key movements relating to lease balances
are presented below:
30 JUNE 2019
NZ$’000
UNAUDITED
Balance at 1 January -
Additions due to first-time adoption of NZ IFRS 16 6,130
Additions during the year 57
Depreciation charges (1,467)
Exchange differences 23
Lease assets at period end 4,743
15
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Lease liabilities
The maturity of the lease liabilities is as follows:
30 JUNE 2019
NZ$’000
UNAUDITED
Less than one year 2,446
One to five years 2,656
More than five years 356
Total lease liabilities 5,458
The total interest expense on lease liabilities and the total cash outflow for the six months ended 30 June 2019 was
$0.2m and $1.9m, respectively.
7. DIVIDENDS
During the period Vista Group paid the final dividend related to the 2018 financial year of $3.5m (2017: $2.9m).
8. GENERAL INFORMATION
Vista Group International Limited (the ‘Company’ and its subsidiaries, collectively ‘Vista Group’) is a company
incorporated and domiciled in New Zealand, and whose shares are publicly traded on the New Zealand Stock
Exchange (NZX) and the Australian Securities Exchange (ASX).
The principal activity of Vista Group is the sale, support and associated development of software for the film industry.
These consolidated interim financial statements are not audited and were approved for issue on 29 August 2019.
9. BASIS OF PREPARATION OF HALF YEAR REPORT
The consolidated interim financial statements of Vista Group have been prepared in accordance with Generally
Accepted Accounting Practice New Zealand (NZ GAAP). They comply with NZ IAS 34 Interim Financial Reporting
and IAS 34 Interim Financial Reporting. The interim financial statements do not include all the notes of the type
normally included in an Annual Report. Accordingly, this report is to be read in conjunction with the Annual Report
for the financial year ended 31 December 2018.
The accounting policies and methods of computation and presentation adopted in the consolidated interim
financial statements are consistent with those described and applied in the Annual Report for the year ended
31 December 2018, with the only exception being the adoption of NZ IFRS 16, as set out below. No other changes
in accounting standards resulted in a material change to Vista Group’s accounting policies.
Taxes on income in the interim periods are accrued using the tax rate that would have been applicable to expected
total annual profit or loss.
NZ IFRS 16 Leases — impact of adoption
NZ IFRS 16 is effective for annual reports beginning on or after 1 January 2019. Vista Group has adopted
NZ IFRS 16 using the modified retrospective transition approach. Under this approach, the cumulative effect of
initially applying NZ IFRS 16 is recognised as an adjustment to retained earnings at 1 January 2019. Comparative
figures for the year ended 31 December 2018 are not restated but instead continue to reflect the accounting
policies under NZ IAS 17 Leases.
16
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
Adjustments recognised on adoption of NZ IFRS 16
On adoption of NZ IFRS 16, Vista Group recognised lease liabilities in relation to leases which had previously been
classified as ‘operating leases’ under the principles of NZ IAS 17. These liabilities were measured at the present value
of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 January 2019.
The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 5.4%.
Vista Group held no finance leases at 31 December 2018.
A reconciliation of operating lease commitments at 31 December 2018 to the lease liability recognised at 1 January
2019 is shown below:
NZ$’000
UNAUDITED
Operating lease commitments disclosed at 31 December 2018 24,370
Discounted using the lessee’s incremental borrowing rate at the date of initial application(650)
Different treatment of leases yet to commence (18,329)
Different treatment of extensions and incentives 1,752
Lease liabilities recognised as at 1 January 2019 7,143
Classified as:
Less than one year 3,323
One to five years 3,340
More than five years 480
Lease liabilities recognised as at 1 January 2019 7,143
The lease assets predominantly comprise property leases which were measured on a retrospective basis as if the
new rules had always been applied.
Vista Group have committed to a 7 year property lease in Los Angeles which will be available for use after 30 June
2019. Should the lease have commenced on 30 June 2019, Vista Group would have recognised an additional $13.7m
lease asset and liability.
Practical expedients applied
In applying NZ IFRS 16 for the first time, Vista Group has used the following practical expedients permitted
by the standard:
• use of a single discount rate to leases with reasonably similar characteristics;
• use of hindsight in determining a lease term;
• reliance on previous assessments on whether leases are onerous; and
• exclusion of initial direct costs for the measurement of the lease asset at the date of initial application.
Vista Group has also elected not to reassess whether a contract contains a lease at the date of initial application.
Instead, for contracts entered into before the transition date, Vista Group relied on its assessment made applying
NZ IAS 17 Leases and IFRIC 4 Determining whether an arrangement contains a lease.
17
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Impact of NZ IFRS 16 on these financial statements
STATEMENT OF FINANCIAL
POSITION (EXTRACT)
30 JUNE 201931 DECEMBER 2018
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
EXCLUDING
NZ IFRS 16
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
AS PREVIOUSLY
REPORTED
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDAUDITED
Cash24,818-24,81834,353-34,353
Other current assets59,911-59,91162,272-62,272
Total current assets84,729-84,72996,625-96,625
Property, plant and equipment5,597-5,5975,358-5,358
Lease assets4,7434,743-6,1306,130-
Deferred tax asset5,2721,3483,9244,6191,7832,836
Other non-current assets118,740-118,740116,267-116,267
Total non-current assets134,3526,091128,261132,3747,913124,461
Total assets219,0816,091212,990228,9997,913221,086
Trade and other payables12,662(257)12,91918,317(285)18,602
Lease liabilities2,4462,446-3,3233,323-
Income tax payable1,746(79)1,8253,673(56)3,729
Other current liabilities24,527-24,52721,396-21,396
Total current liabilities41,3812,11039,27146,7092,98243,727
Lease liabilities3,0123,012-3,8203,820-
Deferred tax liabilities2,3101,1751,1352,5501,5301,020
Other non-current liabilities13,440-13,44016,943-16,943
Total non-current liabilities18,7624,18714,57523,3135,35017,963
Total liabilities60,1436,29753,84670,0228,33261,690
Net assets158,938(206)159,144158,977(419)159,396
Contributed equity61,589-61,58959,378-59,378
Retained earnings81,034(124)81,15880,480(357)80,837
Foreign currency reserve2,850-2,8503,202-3,202
Share-based payment reserve2,298-2,2982,795-2,795
Total equity attributable to
owners of the parent147,771(124)147,895145,855(357)146,212
Non-controlling interests11,167(82)11,24913,122(62)13,184
Total equity158,938(206)159,144158,977(419)159,396
18
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
STATEMENT OF
COMPREHENSIVE INCOME
(EXTRACT)
SIX MONTHS 30 JUNE 2019SIX MONTHS 30 JUNE 2018
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
EXCLUDING
NZ IFRS 16
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
AS PREVIOUSLY
REPORTED
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITED
Total revenue67,511-67,51160,112-60,112
Operating expenses31,606-31,60627, 570-27, 570
Administration expenses22,387(364)22,75117,443(190)17,633
Other expenses5,529-5,5293,771-3,771
Total expenses59,522(364)59,88648,784(190)48,974
Operating profit7,9893647,62511,32819011,138
Finance costs (679)(151)(528)(691)(182)(509)
Finance income290-290185-185
Share of loss from associates
and joint ventures(1,562)-(1,562)(1,731)-(1,731)
Capital gain — Stardust119-119---
Profit before tax6,1572135,9449,09189,083
Tax expense(2,057)-(2,057)(3,313)-(3,313)
Profit for the period4,1002133,8875,77885,770
Other comprehensive income(353)-(353)1,658-1,658
Total comprehensive income
for the period3,7472133,5347,43687,428
Earnings per share for profit
attributable to the equity
holders of the parent
Basic (cents per share)$0.02 -$0.02 $0.03 -$0.03
Diluted (cents per share)$0.02 -$0.02 $0.03 -$0.03
Other than the reclassification of the principal portion of operating lease payments to financing activities,
NZ IFRS 16 had no other significant impact to the cash flow statement.
A reconciliation of EBITDA to profit before tax for the period is as follows:
SIX MONTHS 30 JUNE 2019SIX MONTHS 30 JUNE 2018
ADJUSTED FOR
IFRS 16
IMPACT OF
IFRS 16
EXCLUDING
IFRS 16
ADJUSTED FOR
IFRS 16
IMPACT OF
IFRS 16
AS PREVIOUSLY
REPORTED
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITED
EBITDA11,7941,8319,96314,5591,44413,115
Depreciation & amortisation(3,746)(1,467)(2,279)(3,138)(1,254)(1,884)
EBIT8,0483647,68411,42119011,231
Finance income290-290185-185
Finance costs(679)(151)(528)(691)(182)(509)
Acquisition expenses(59)-(59)(93)-(93)
Share of loss from associates
and joint ventures(1,562)-(1,562)(1,731)-(1,731)
Capital gain — Stardust119-119---
Profit before tax6,1572135,9449,09189,083
If NZ IFRS 16 was implemented for the 12 months ended 31 December 2018, profit before tax and EBITDA would
have been $21.4m and $32.6m respectively.
19
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
A reconciliation of segmental EBITDA for the period is as follows:
SIX MONTHS 30 JUNE 2019SIX MONTHS 30 JUNE 2018
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
EXCLUDING
NZ IFRS 16
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
AS PREVIOUSLY
REPORTED
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITED
Cinema15,6681,38214,28613,9001,10312,797
Movio2,3081272,1811,6301071,523
Additional Group Companies569322247803234569
Early Stage Investments(992)-(992)457-457
Corporate(5,759)-(5,759)(2,231)-(2,231)
Vista Group EBITDA11,7941,8319,96314,5591,44413,115
If NZ IFRS 16 was implemented for the 12 months ended 31 December 2018, EBITDA by segment would have been
$28.1m for Cinema, $6.5m for Movio, $2.1m for Additional Group Companies, $0.4m for Early Stage Investments
and ($4.5m) for Corporate.
A reconciliation of non-current assets by domicile of entity is as follows:
30 JUNE 2019 31 DECEMBER 2018
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
EXCLUDING
NZ IFRS 16
ADJUSTED FOR
NZ IFRS 16
IMPACT OF
NZ IFRS 16
AS PREVIOUSLY
REPORTED
NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000NZ$’000
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDUNAUDITEDAUDITED
New Zealand43,98268843,29442,7671,20941,558
United States10,1551,7568,39910,9432,4128,531
United Kingdom10,3831,9088,47511,2322,4448,788
Mexico11,4166111,35511,4548411,370
Other20,9231,67819,24521,2631,76419,499
10. FINANCIAL INSTRUMENTS
Financial instruments by category
30 JUNE 201931 DECEMBER 2018
NZ$’000NZ$’000
UNAUDITEDAUDITED
Financial assets measured at amortised cost
Cash24,81834,353
Trade receivables35,28644,293
Sundry receivables3,2173,343
Related party loan — Numero5,4135,413
68,73487,402
Financial liabilities measured at amortised cost
Trade payables7055,824
Sundry accruals4,1843,978
Borrowings11,91411,944
16,80321,746
20
INTERIM FINANCIAL STATEMENTS 2019
NOTES TO THE FINANCIAL STATEMENTS
Fair values
Vista Group’s financial instruments that are measured subsequent to initial recognition at fair values are grouped
into levels based on the degree to which the fair value is observable:
Level 1 Fair value measurements derived from quoted prices in active markets for identical assets.
Level 2 Fair value measurements derived from inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly or indirectly.
Level 3 Fair value measurements derived from valuation techniques that include inputs for the asset or liability
which are not based on observable market data.
During the year, there have been no transfers between levels or changes in the valuation methods used to
determine the fair value of Vista Group’s financial instruments. At 30 June 2019, no financial assets or liabilities
were held at fair value using level 3 measurements. Vista Group did however use a level 3 measurement during
the year to determine the fair value of Stardust (see section 2), however at 30 June 2019 Vista Group’s stake in
Stardust is equity accounted.
11. OTHER DISCLOSURES
Contingent liabilities
There were no contingent liabilities for Vista Group at 30 June 2019 (at 31 December 2018: $nil).
Capital commitments
There were no capital commitments for Vista Group at 30 June 2019 (at 31 December 2018: $nil).
Related parties
Related parties are materially consistent with those disclosed in the 2018 Annual Report. See section 2 for further
details of Vista Group’s associates and joint ventures.
Events after balance date
Los Angeles lease
Vista Group have agreed a 7 year property lease through to July 2026 in Los Angeles, with these premises being
available for use in July 2019. Should these premises have been available at 30 June 2019, Vista Group would have
recognised a lease asset of $13.7m, a current lease liability of $1.0m and a non-current lease liability of $12.7m.
Approval of interim dividend
On 29 August 2019, the Directors approved a fully imputed final dividend of 1.2 cents per share. The dividend
record date is 13 September 2019 and the payment date 27 September 2019.
21
VISTA GROUP INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
VISTA GROUP INTERNATIONAL LIMITED
Level 3, 60 Khyber Pass Road,
Auckland 1023, New Zealand
+64 9 984 4570
info@vistagroup.co.nz
vistagroup.co
---
Vista Group International Limited
Results Announcement
Results for Announcement to the Market
Name of issuer Vista Group International Limited (NZX & ASX:VGL)
Reporting Period 6 months to 30 June 2019
Previous Reporting Period 6 months to 30 June 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$67,511 12.31%
Total Revenue $67,511 12.31%
Net profit/(loss) from continuing
operations
$4,100 -28.94%
Total net profit/(loss) $4,100 -28.94%
Interim Dividend
Amount per Quoted Equity
Security
$0.01200000
Imputed amount per Quoted
Equity Security
$0.00466667
Record Date 13 September 2019
Dividend Payment Date 27 September 2019
Current period Prior comparable
period
Net tangible assets per Quoted
Equity Security
$0.43532936 $0.42313484
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
This announcement should be read in conjunction with
the interim financial statements for the six month period
ended 30 June 2019 that accompany this
announcement.
Authority for this Announcement
Name of person authorised to
make this announcement
Kelvin Preston – General Counsel & Company Secretary
Contact person for this
announcement
Kelvin Preston – General Counsel & Company Secretary
Contact phone number
09 967 4113
Contact email address
kelvin.preston@vista.co
Date of release through MAP
29 August 2019
Unaudited interim financial statements accompany this announcement.
---
Vista Group International Limited
Distribution Notice
Section 1: Issuer Information
Name of issuer Vista Group International Limited (NZX & ASX:VGL)
Financial product name/
description
Ordinary Shares
NZX ticker code VGL
ISIN NZVGLE0003S1
Type of distribution
Full Year Quarterly
Half Year X Special
DRP
applies
Record date 13 September 2019
Ex-Date 12 September 2019
Payment date 27 September 2019
Total monies associated with the
distribution
$1,996,254
Source of distribution Retai ned earnings
Currency NZD
Section 2: Distribution Amounts per Financial Product
Gross distribution $0.01666667
Total cash distribution $0.01200000
Excluded amount $nil
Supplementary distribution
amount
$nil
Section 3: Imputation Credits and Resident Withholding Tax
Is the distribution imputed Fully imputed X
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
$0.00466667
Resident Withholding Tax per
financial product
$0.00083333
Section 4: Distribution Re-investment Plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
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Section 5: Authorit y for this Announcement
Name of person authorised to
make this announcement
Kelvin Preston – General Counsel & Company
Secretary
Contact person for this
announcement
Kelvin Preston – General Counsel & Company
Secretary
Contact phone number
09 967 4113
Contact email address
kelvin.preston@vista.co
Date of release through MAP
29 August 2019
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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