Vista boosts first-half profit 24%, grabbing market share with expanded group
By Paul McBeth
Aug. 28 (BusinessDesk) - Vista Group International, the cinema software and analytics firm, boosted first-half profit 24 percent as the expanded group beefed up its share of the global market and extended 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 percent to $27.3 million, and the company expects to meet forecast sales of $61.5 million in calendar 2015.
"Vista group's trading performance in the first half of 2015 represented a significant increase from 2014, which represented both the enlarged nature of Vista Group post the August 2014 IPO and the improved performance of the operating business," the company said. "The existing businesses within Vista Group are strategically well-placed in each of their markets and the sales pipeline for each of them looks strong for both the second half of 2015 and the 2016 year."
The firm'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.
Today's accounts include the restatement of its 2014 annual statements after it reassessed 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.
The accounts also show Vista paid $6.2 million in cash and up to $1.76 million in further earn-outs for Dallas-based cinema software firm TicketSoft, which was acquired on April 1 of this year. The unit added $320,000 of revenue and profit of $60,000 to Vista's earnings in the current period.
Vista said its Vista Entertainment Solutions business increased its global market share to 40 percent from 38 percent as at Dec. 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, and the company is actively pursuing acquisition opportunities and investments to accelerate revenue growth.
The shares last traded at $5.65 and have climbed 49 percent this year. Vista raised $92 million in an initial public offering at a price of $2.35 last year.