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UPDATE: Vista boosts first-half profit 24%, eyes more acquisitions

Net profit rose to $1.26 million in the six months ended June 30.

Paul McBeth
Fri, 28 Aug 2015

UPDATEDVista Group International [NZX: VGL], the cinema software and analytics firm, boosted first-half profit 24% and is still on the hunt for new acquisitions as it grows its global market share and extends its reach into new territory.

Net profit rose to $1.26 million in the six months ended June 30, from $1.01 million a year earlier, the Auckland-based company said in a statement. Revenue climbed 57% to $27.3 million, and the company expects to meet forecast sales of $61.5 million in calendar 2015.

Vista generated an operational cash inflow of $7.5 million in the half, which covered its acquisition of Dallas-based cinema software firm TicketSoft. It paid $6.2 million in cash up-front, and has earmarked another $1.76 million in earn-outs for the purchase, which was completed on April 1. The company had cash and equivalents of $29.4 million as at June 30.

Chief executive Murray Holdaway told BusinessDesk the company still has cash from last year's $92 million initial public offering and is looking at a number of potential acquisitions and investment opportunities.

"There are one or two complementary-type products, and another (acquisition) that is more about gaining a firmer hold in the market," Holdaway said. "We're still in early days."

Vista's technology is used to manage cinema operations in more than 60 countries, and this month it made its first foray into Japan, signing a software distribution agreement with Vinx Corp.

Holdaway said the expansion into Japan was one that they've been trying to do for some time, given the country boasts the world's third-biggest box office take.

He's upbeat on the outlook for the rest of the year, with the upcoming James Bond and Star Wars films expected to drive attendance in the second half.

"Cinema is having a very, very good year with a sequence of very good movies out," Holdaway said. "Most companies in the market are having one of their best years of the past decade."

Today's accounts include a restatement of the previous year's after reassessment of the goodwill value attached to Virtual Concepts. The restatement increased Vista's 2014 net profit to $7.95 million from the $3.73 million previously stated.

Vista said its Vista Entertainment Solutions business increased its global market share to 40% from 38% as at December 31, with new customers gained in Norway, the UK, US, China, Taiwan, Australia and India, and is expected to beat expectations in the second half of the year.

Its Veezi software-as-a-service unit installed 250 sites by June 30, up from 150 sites six months earlier, and was also on track to beat expectations for the financial year.

The Movio analytics segment was running behind schedule in the release and commercialisation of its product, while the MACCS film distribution division performed in line with expectations.

Vista doesn't intend on paying a dividend through the prospectus forecast period.

The shares fell 4.4% to $5.40 and have climbed 49% this year. Vista sold shares at $2.35 in its IPO last year.

(BusinessDesk)

BusinessDesk receives funding to help cover the commercialisation of innovation from Callaghan Innovation.

Paul McBeth
Fri, 28 Aug 2015
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UPDATE: Vista boosts first-half profit 24%, eyes more acquisitions
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