Vista expects 'meaningful revenue' for Movio unit in Screenvision deal
Vista Group International expects to generate "meaningful revenue" for its Movio analytics division after signing US cinema advertiser Screenvision Direct as a customer.
The Auckland-based company's Movio division provides marketing data analytics and campaign management software for movie theatres, film distributors and studios, giving them real-time information for about 34 million moviegoers' activity and transactions, of which more than 14 million are in the US.
The deal boosts Movio's market share of onscreen advertising, with Screenvision operating programmes across 15,000 screens in 2400 US theatres.
"With this growth Movio's share of the cinema on-screen advertising business in the USA it should provide an impetus in other markets where cinema screen advertising is prevalent," Vista says.
"This contract will add a meaningful revenue stream to Movio and further validates the value of the moviegoer data that can be accessed via Movio Media."
Last month, Vista said the Movio cinema division lifted annual revenue 42% with "notable growth" in South Africa, Norway, Denmark and the United Arab Emirates, and increased contracted customers from 47% to 50%. The Movio media side of the business signed new multi-year deals with Sony, Warner Bros and Lionsgate and was seen as holding "significant opportunities" from the rise of digital media.
Vista shares last traded at $5.46 and have slipped 1.6% over the past 12 months.