Vista Group upgrades revenue guidance on box office growth
Interim Report
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Management commentary
The following consolidated unaudited interim
financial statements for Vista Group International
Limited (Company) and its subsidiaries
(collectively, Vista Group) are for the six months
ended 30 June 2022 and represent the half year
results for Vista Group. Comparisons are to the
first six months of 2021.
Guidance update
Vista Group upgrades its revenue guidance for
the year ended 31 December 2022 to $123-128m.
Vista Group had previously projected revenue of
$118-123m.
Financial highlights
• Total revenue of $62.4m, an improvement of
39% on the first half of 2021, and recurring
revenue up 43%
• EBITDA
1
of $3.1m and positive operating
cashflow of $5.1m
• Accelerated investment across the SaaS
platform, with monthly cash burn of only $0.1m
over the last 12 months
• Loss for the period of $18.0m, including $13.8m
of non-cash impairment charges (predominantly
related to Vista China), equity accounted losses
and acquisition costs.
Operating highlights
• First major enterprise cinema circuit signed to
Vista Cloud with over 300 sites
• Strong customer interest in the SaaS platform
• Maintained 51% market share of the estimated
global enterprise market (20+ screens),
excluding China.
Industry overview
Box office
Hollywood blockbusters are back! Content is
flowing globally, cinemas are open with limited
restrictions and audiences are voting with their
feet and wallets. As expected, titles such as To p
Gun: Maverick, Doctor Strange in the Multiverse
of Madness and Jurassic World Dominion have
culminated in a first half global box office of
US$13.4 billion, with over US$3.0 billion relating
to these three titles alone. The recovery is well
underway with June 2022 Domestic box office at
84% of pre-pandemic levels.
Segment overview
Cinema
Vista Cinema's revenue was up 39% to $43.7m
on the first half of 2021. Recurring revenue was
up 46% due to the improved box office. EBITDA1
of $7.8m was up on the first half of 2021, after
excluding the $3.4m prior year favourable
movements from the expected credit loss
provision.
Market share data remains difficult to confirm,
but Vista Group estimates that Vista Cinema
has retained 51% share of the estimated global
enterprise market (20+ screens), excluding China.
Vista Cloud is live with two customers, including
the transition of our first US customer from the
Retriever platform. A third customer has now
been signed up with the major Latin American
enterprise customer expected to transition
over 300 sites to Vista Digital, and then Vista
Cloud over time. The SaaS platform focused
developments continue to represent the majority
of Vista Group’s innovation spend.
Movio
Movio revenue was up 38% to $9.0m against the
first half of 2021, as variable fees increase with
the strength of the global box office. EBITDA1 of
$2.0m was up 100% from the first half of 2021.
Although non-recurring revenue recovery in
Movio Media remains slower than expected, Movio
Cinema continues to be in high usage with 3.9b
connections in the trailing twelve months, up 70%
from 31 December 2021.
There has been significant interest in Movio
Cinema's new product which is now in beta with
customers having been demonstrated widely in
2022. This will largely complete the transformation
of its core technology that was started in mid-
2020. Driven by the mantra, ‘faster, simpler,
smarter’, this will enable customers to access
improved insights across their moviegoer data
sets.
Additional Group Companies
This segment comprises Numero, Maccs, Powster
and Flicks. Revenue from the segment was up
41% against the first half of 2021, with EBITDA1
improving to $0.3m.
The Numero and Maccs businesses had a good
first half with revenue up 19% and 25 customers
now live on mica. The geographic expansion of
flash and electronic box office reporting continues
to support strong and stable revenue growth.
Powster’s revenue was up 91% on the first half
of 2021, with a rebound of the global box office
increasing demand for Powster's Showtimes
platform and creative services, including expanded
relationships with both Netflix and Twitch.
Flicks’ revenue was up 16% on the first half of 2021,
with strong advertising and its continued growth
in Australia and the United Kingdom. Unique users
are now approaching 2m across their platform.
Flicks continues to cement its role as a cinema and
streaming discovery platform.
Corporate
Cost management across Vista Group remains a
key focus, with the $1.7m increase in corporate
costs correlating to increased investment in the
sales pipeline, primarily travel and marketing.
Financial overview
Vista Group's reported revenue of $62.4m was
up 39% on the first half of 2021, with recurring
revenue up 43%. Vista Group’s EBITDA1 of $3.1m
was up 11% on the first half of 2021 (adjusting for
expected credit loss movements).
Vista Group’s loss for the period of $18.0m was
primarily due to $13.8m of non-cash impairment
charges (predominantly related to Vista China),
equity accounted losses and acquisition costs.
China’s ‘zero-covid’ public health response has
continued to negatively impact the local cinema
industry and box office. With the majority of Vista
China's revenue being directly related to box office
performance, such continued uncertainty has led
to Vista Group recognising a non-cash impairment
charge against its investment in Vista China.
Vista Group’s balance sheet remains strong with
cash of $51.9m (or $33.5m net of borrowings)
and the extension of the ASB debt facilities. Vista
Group generated $5.1m cashflow from operating
activities, including $1.5m from settling one-
off US sales tax provisions. Investing cashflow
increased from the first half of 2021 with the
asset acquisition of Retriever and accelerated
development of the SaaS product.
Collections continue to improve, while revenue
was up 39%, trade receivables were in line with
the prior year. Monthly cash burn was $0.6m in the
first half of 2022 (after adjusting for the Retriever
acquisition and one off US sales tax payments), or
$0.1m over the last year.
1 EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, “other gains and
losses” (see section 4.4 of the interim report) and share of equity accounted results from associates and joint ventures.
Management commentary • 32
The above statement should be read in conjunction with the accompanying notes.The above statement should be read in conjunction with the accompanying notes.
Income statement
For the six months ended 30 June 2022
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
Restated
1
CONTINUING OPERATIONSSECTIONUNAUDITEDUNAUDITED
Total revenue2.1, 3.362.4 44.9
Cost to serve4.1(24.0)(16.8)
Gross profit38.4 28.1
Sales and marketing costs4.1(6.8)(4.2)
Research and development costs4.1(12.6)(10.3)
General and administration costs4.1(15.7)(7.3)
Foreign currency (losses) / gains(0.2)0.1
Total operating expenses(35.3)(21.7)
EBITDA
2
3.3, 3.43.1 6.4
Amortisation
11.1(5.7)(4.0)
Depreciation(2.7)(3.4)
Finance costs(1.1)(1.1)
Finance income0.3 0.3
Share of equity accounted loss from associates and JVs9.3(2.7)(0.3)
Other gains and losses4.4(11.1)(0.4)
Loss before tax (19.9)(2.5)
Taxation1.9 (0.6)
Loss for the period (18.0)(3.1)
Loss for the period is attributable to:
Owners of the parent(17.8)(3.3)
Non-controlling interests(0.2)0.2
Loss for the period(18.0)(3.1)
Basic and diluted earnings per share (cents)13.1($0.08)($0.01)
1 See section 15.1 for information of restatement of prior period US sales tax obligations.
2 EBITDA is a non-GAAP measure which is defined as earnings before net finance costs, income tax, depreciation, amortisation, “other gains and losses”
(see section 4.4) and share of equity accounted results from associates and joint ventures.
Statement of other comprehensive income
For the six months ended 30 June 2022
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
Restated
UNAUDITEDUNAUDITED
Items that may be reclassified subsequently to the income statement¹
Translation of foreign operations3.6 1.3
Items that will not be reclassified to the income statement
Excess income tax (expense) / benefit on share-based payments(0.2)0.4
Total other comprehensive income3.4 1.7
Loss for the period(18.0)(3.1)
Total comprehensive loss for the period(14.6)(1.4)
Total comprehensive loss for the period is attributable to:
Owners of the parent(14.6)(1.7)
Non-controlling interests-0.3
Total comprehensive loss for the period(14.6)(1.4)
1 Items of other comprehensive income will be reclassified to the income statement when specific conditions are met.
Interim financial statements • 54
The above statement should be read in conjunction with the accompanying notes.The above statement should be read in conjunction with the accompanying notes.
Statement of changes in equity
For the six months ended 30 June 2022
SIX MONTHS ENDED 30 JUNE 2022SECTION
CONTRIBUTED
EQUITY
NZ$m
RETAINED
EARNINGS
NZ$m
FOREIGN
CURRENCY
RESERVE
NZ$m
SHARE-
BASED
PAYMENT
RESERVE
NZ$m
TOTAL EQUITY
ATTRIBUTABLE
TO OWNERS
NZ$m
NON-
CONTROLLING
INTERESTS
NZ$m
TOTAL
EQUITY
NZ$m
UNAUDITED
Balance at 1 January 2022131.3 23.3 1.7 1.7 158.0 1.8 159.8
Total comprehensive income movement:
Loss for the period-(17.8)--(17.8)(0.2)(18.0)
Other comprehensive income
2
(0.2)-3.4 -3.2 0.2 3.4
Total comprehensive (loss) / income(0.2)(17.8)3.4 -(14.6)-(14.6)
Transactions with owners:
Retriever acquisition53.2 ---3.2 -3.2
Share-based payments0.9 --1.0 1.9 -1.9
Balance at 30 June 2022135.2 5.5 5.1 2.7 148.5 1.8 150.3
SIX MONTHS ENDED 30 JUNE 2021
UNAUDITED
Balance at 1 January 2021126.0 34.4 (0.5)1.3 161.2 1.9 163.1
Prior period adjustments
1
15.1-(1.3)--(1.3)-(1.3)
Restated balance at 1 January 2021126.0 33.1 (0.5)1.3 159.9 1.9 161.8
Total comprehensive income movement:
Restated loss for period
1
15.1-(3.3)--(3.3)0.2 (3.1)
Other comprehensive income
2
0.4 -1.2 -1.6 0.1 1.7
Total comprehensive income / (loss) 0.4 (3.3)1.2 -(1.7)0.3 (1.4)
Transactions with owners:
Share-based payments0.6 --2.4 3.0 -3.0
Balance at 30 June 2021127.0 29.8 0.7 3.7 161.2 2.2 163.4
1 See section 15.1 for information of restatement of prior period US sales tax obligations.
2 Items of other comprehensive income will be reclassified to the income statement when specific conditions are met.
Statement of financial position
As at 30 June 2022
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
SECTIONUNAUDITEDAUDITED
CURRENT ASSETS
Cash51.960.4
Trade and other receivables7.137. 336.5
Net investment in sublease8.1-0.5
Income tax receivable 0.92.2
Total current assets90.199.6
NON-CURRENT ASSETS
Property, plant and equipment4.24.0
Lease assets13.315.6
Net investment in sublease8.11.72.2
Investment in associates and JVs9.2-11.6
Goodwill1057. 555.7
Other intangible assets11.150.939.8
Deferred tax asset18.314.6
Total non-current assets 145.9143.5
Total assets 236.0243.1
CURRENT LIABILITIES
Borrowings - related parties6.20.50.6
Trade and other payables18.818.7
Lease liabilities5.04.8
Deferred revenue21.720.5
Contingent consideration53.3-
Provisions12.21.32.8
Income tax payable 0.10.2
Total current liabilities50.747. 6
NON-CURRENT LIABILITIES
Borrowings - external6.217.916.2
Lease liabilities15.317.8
Deferred revenue0.60.4
Provisions12.20.40.4
Deferred tax liability 0.80.9
Total non-current liabilities 35.035.7
Total liabilities85.783.3
Net assets 150.3159.8
EQUITY
Contributed equity13.2135.2131.3
Retained earnings5.523.3
Foreign currency reserve5.11.7
Share-based payment reserve
2.71.7
Total equity attributable to owners of the parent148.5158.0
Non-controlling interests1.81.8
Total equity 150.3159.8
For, and on behalf, of the Board who approved these interim financial statements for issue on 27 August 2022.
James Miller
Chair Audit and Risk Committee
Susan Peterson
Chair
Interim financial statements • 76
The above statement should be read in conjunction with the accompanying notes.
Statement of cashflows
For the six months ended 30 June 2022
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
SECTIONUNAUDITEDUNAUDITED
CASHFLOWS FROM OPERATING ACTIVITIES
Receipts from customers63.445.6
Payments to suppliers and employees(57.2)(43.1)
Pandemic related wage subsidies-3.1
Pandemic related tax deferrals-(2.2)
Taxes paid(0.2)(1.6)
Interest paid(0.9)(0.8)
Net cash inflow from operating activities6.15.11.0
CASHFLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment(0.7)(0.3)
Purchase of internally generated software and other intangibles11.1(7.6)(5.8)
Interest received-0.2
Payment of contingent consideration-(0.4)
Retriever acquisition, net of cash acquired5(3.3)-
Net cash applied to investing activities (11.6)(6.3)
CASHFLOWS FROM FINANCING ACTIVITIES
Lease payments - principal elements(2.5)(1.6)
Loan repayment - HSBC PPP6.2-(2.8)
Loan drawdown - related parties6.2-0.6
Loan repayment - related parties6.2(0.1)-
Net cash applied to financing activities (2.6)(3.8)
Net decrease in cash (9.1)(9.1)
Cash at beginning of period60.467.1
Foreign exchange differences0.60.1
Cash at period end 51.958.1
Notes to the financial statements
1. Basis of preparation
The consolidated interim financial statements of Vista Group have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand (NZ GAAP). Vista Group is a for-profit entity for the purposes of
complying with NZ GAAP. The consolidated interim financial statements comply with NZ IAS 34 Interim Financial
Reporting, and are not required to include all the notes presented in the Annual Report. Accordingly, this report is to
be read in conjunction with the 2021 Annual Report.
With exception to the below notes, 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 2021 Annual
Report.
Taxes on income in the interim periods are accrued using the tax rate that would have been applicable in respect of
the total annual profit or loss.
The prior period comparatives have been restated to include the material US sales tax obligations that were identified
in the 2021 economic nexus sales tax study, which was completed in the second half of 2021. See section 15.1 for more
details. This restatement was also applied in the 2021 Annual Report.
2. Revenue
Vista Group recognises revenue when performance obligations have been settled. A performance obligation is settled
when the customer has received all the benefits associated with the performance obligation.
2.1 Revenue by category
30 JUNE 2022 30 JUNE 2021
NZ$m%NZ$m%
UNAUDITEDUNAUDITEDUNAUDITEDUNAUDITED
SaaS revenue18.0 12.1
Non-SaaS revenue35.5 25.2
Recurring revenue53.5 86%37. 3 83%
Perpetual software1.9 2.3
Hardware2.9 0.6
Services & development - one off4.0 4.5
Other revenue0.1 0.2
Non-recurring revenue8.9 14%7. 6 17%
Total revenue162.4 100%44.9 100%
1 No individual customer exceeded 10% of revenue in either the current or prior comparative period.
Recurring and non-recurring revenues are non-GAAP financial measures that the Chief Operating Decision Maker
(CODM) uses to help evaluate the financial performance of Vista Group and its operating segments. Recurring
revenue is the portion of revenues that are expected to give rise to recurring cash receipts that will continue until the
service is cancelled. Unlike non-recurring revenues, these revenues are predictable, stable and can be expected to
occur at regular intervals going forward with a relatively high degree of certainty.
SaaS revenues are those derived from subscription-based cloud-hosted software, with the software located on
externally provided servers.
Non-SaaS revenues are those derived from recurring revenue streams that are not cloud-hosted software.
8Notes to the interim financial statements • 9
2.2 Revenue process and policy
The following details Vista Group’s approach to categorising revenue:
REVENUE CATEGORYREVENUE TYPESEGMENTDESCRIPTIONTIMING OF REVENUE RECOGNITION
SaaS revenue
Recurring revenue
Vista recurring
subscriptions
– annual fee
Vista CinemaA subscription for the
right to access the Vista
Cinema cloud-hosted
software.
Over time
Benefits are simultaneously
received and consumed;
revenue is recognised over
the contract term.
Vista recurring
subscriptions
– variable fee
Vista CinemaVariable revenue based
on the number of tickets
sold.
Point in time
Variable fees recognised
at the end of each month
once usage-based
quantities are known.
Movio Cinema
– annual fee
MovioMovio Cinema
cloud-hosted data,
marketing and analytics
platform. Customers
are charged an annual
access fee to the
platform plus a variable
component (see below).
Over time
Platform access is
recognised over time as
benefits are simultaneously
received and consumed.
Movio Cinema
– variable fee
MovioVariable revenue based
on the number of active
members managed
and the number of
promotional messages
sent during a given
period.
Point in time
Variable license revenue
is recognised at the end
of each month once
usage-based quantities
are known.
Movio Research
– platform fee
MovioMovio Research
cloud-hosted data,
marketing and analytics
platform.
Over time
Platform access is
recognised over time as
benefits are simultaneously
received and consumed.
Maccs platforms
– annual fee
AGC (Maccs)A subscription for
the right to access
the Maccs platforms,
including MaccsBox,
DCHub and MaccsCore.
Over time
Platform access is
recognised over time as
benefits are simultaneously
received and consumed.
Maccs platforms
– variable fee
AGC (Maccs)Variable revenue based
on the use of Maccs
platforms, including
MaccsBox, DCHub and
MaccsCore.
Point in time
Variable license revenue
is recognised at the end
of each month once
usage-based quantities
are known.
Numero platformAGC (Numero)A subscription for the
right to access
cloud-hosted regular
box office reporting.
Over time
Platform access is
recognised over time as
benefits are simultaneously
received and consumed.
REVENUE CATEGORYREVENUE TYPESEGMENTDESCRIPTIONTIMING OF REVENUE RECOGNITION
Non-SaaS revenue
Recurring revenue
On-premise
subscription fees
Vista Cinema A subscription for
the right to access
on-premise software
(i.e. not hosted on the
cloud). This service
includes the right to
basic support and
any enhancements
or upgrades in the
software.
Over time
Benefits are simultaneously
received and consumed;
revenue is recognised over
the subscription term.
MaintenanceVista Cinema /
AGC (Maccs &
Numero)
Basic support and
any enhancements
or upgrade to the
software.
Over time
Benefits are simultaneously
received and consumed;
revenue is recognised over
the maintenance term.
Services &
development
- recurring
Vista Cinema
/ Movio / AGC
(Maccs)
Annually committed
bespoke development
of software.
Over time
Recognised when the
service or development is
complete or on a stage of
completion basis.
Showtimes
platform
AGC (Powster)Website and marketing
platform for feature
films, incorporating
Showtimes data.
Point in time
Recognised when the
platform is made available
to the customer.
Non-recurring
revenue
Perpetual
software
Vista Cinema /
AGC (Maccs)
Perpetual ERP software
license targeted at
larger cinema circuits.
Point in time
Recognised at the point
in time when the software
goes live, which is when the
customer can benefit from
using the software.
Movio Media
– targeted
campaigns
Movio Targeted marketing
campaigns, digital
advertising and reports.
Point in time
Revenue is recognised when
the campaigns and reports
are completed.
Website
development
AGC (Powster)Creation of websites for
new films about to be
released.
Point in time
Recognised when the
website has been delivered
to the customer.
Services &
development
– one off
Vista Cinema
/ Movio / AGC
(Maccs)
Fees charged for one
off value-add services,
implementation
services and bespoke
development of
software.
Over time
Recognised when the
service or development is
complete or on a stage of
completion basis.
HardwareVista CinemaRevenue from the one-
off sale of hardware.
Point in time
Recognised at a point in
time when delivery has
been made.
Notes to the interim financial statements • 1110
2.3 Revenue provisioning (significant judgement / estimate)
As a result of the pandemic, there has been an increased risk that Vista Group is not able to recover all amounts
billed due to the financial distress of its customers. As NZ IFRS 15 Revenue from Contracts with Customers only
permits revenue to be recognised when it is probable that Vista Group will collect the consideration, significant
judgement has been applied with revenue recognised after 1 March 2020 (the month that pandemic forced worldwide
cinema closures).
Judgements made when provisioning for revenue include:
• Concession discounts: Many of Vista Group’s core customers are located in regions which have been affected by
the pandemic (such as North America, Europe and Asia), where the majority of cinemas were closed during 2020
and the first quarter of 2021. To ensure timely payment, or to facilitate support to customers, Vista Group granted
concessions to payment terms or discounts to recurring fees. Vista Group has worked closely with its customer
base to provide appropriate relief, whilst seeking to reserve its position in respect of amounts contractually owed.
Concession discounts are recognised as a reduction to revenue when they have been agreed, or where the
customer has a reasonable expectation of being entitled to a discount. At 30 June 2022, Vista Group has applied
judgement when determining the customers who have a reasonable expectation to receive a concession discount.
For agreed concession discounts, reductions in revenue and trade receivables were recognised throughout
the period. For expected concession discounts, a reduction in revenue was recognised with a corresponding
recognition of a concession discount provision, as presented in section 7.5.
• Credit risk provision (core businesses): Vista Group applied judgement by classifying all revenues recognised after
1 March 2020 as ‘variable consideration’, meaning that only the cash consideration estimated to be received is
permitted to be recognised as revenue. This judgement was made because on average the amount of consideration
that Vista Group ultimately expected to collect would be less than the price stated in the contract.
Such revenue provisioning estimates require significant judgement, with any under/over estimation in the
consideration received being recognised as an adjustment to revenue in a subsequent reporting period. In doing
this, Vista Group assesses each of its customers for any known risk that may impact the ability to collect the
associated consideration and their ability to pay the amounts invoiced. Where these facts are known, judgement
has been applied to assess the amount that is likely to be collected.
At 1 July 2021, Vista Group determined that the health of the cinema industry had improved, with the risk of
worldwide closures being considered less likely. Accordingly, Vista Group determined revenue would cease being
treated as ‘variable consideration’, with any risk of default being encompassed in the expected credit loss (ECL)
provision (recognised as an expense on the income statement). The only exception being where revenue is
recognised for customers who are deemed to be a liquidation risk.
For revenues recognised between 1 March 2020 and 30 June 2021, a credit risk provision remains. This is calculated
as a reduction in revenue and trade receivables (as presented in section 7.5) until all associated invoices have been
cleared.
• Credit risk provision (Additional Group Companies): Customers in this segment are predominantly studios,
each of whom have more diversified revenues (i.e. video on demand, television etc.). These customers have
predominantly continued settling their invoices during the pandemic and are not anticipated to have the same level
of collectability issues. Accordingly, only minimal provisioning has been required on a customer-by-customer basis
(within the specific ECL provision).
See section 7.5 for further details of the revenue provisions at 30 June 2022, including how these provisions add
to the ECL provisions to show the proportion of total provisions against trade receivables and accrued revenues. A
sensitivity analysis of credit risk is also available in section 7.5.
3. Operating segments
Vista Group operates in the vertical cinema/film market via three reportable segments and a corporate segment.
The Chief Executive and Board of Vista Group are collectively considered to be the 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.
• Cinema segment: Software associated with cinema management via the Vista software suite of products, plus
the cloud based Veezi product for smaller scale cinemas. This segment also includes movieXchange and Share
Dimension and the recent acquisition of the customer relationships of Retriever (see section 5). It also includes
revenues from Vista China, which is an associate company of Vista Group (see section 15.2).
• Movio segment: Includes the Movio Cinema and Movio Media products, both of which provide data analytics and
campaign management.
• Additional Group Companies segment (AGC): An aggregation of Maccs, Powster, Flicks and Numero. None of
these businesses individually exceed the 10% threshold for segment revenue or profitability that would require
separate disclosure under NZ IFRS 8.
• Corporate segment: The shared services functions associated with Vista Group, being legal, finance and senior
management.
3.1 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.
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
SECTION UNAUDITEDUNAUDITED
New Zealand 13.7 8.9
United States 23.6 13.2
United Kingdom 15.3 13.2
Mexico 4.6 4.9
Other
1
5.2 4.7
Total revenue2.162.4 44.9
1 The other category includes entities in Australia, Brazil, Germany, Malaysia, Netherlands, Romania and South Africa.
3.2 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 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
New Zealand 62.8 62.1
United States 28.3 18.2
United Kingdom 9.7 11.6
Mexico
12.6 11.5
Other
1
14.2 13.9
Non-current assets²127.6 117.3
1 The other category includes entities in Australia, Brazil, Germany, Malaysia, Netherlands, Romania and South Africa.
2 As required by NZ IFRS 8, non-current operating assets in the table above excludes deferred tax assets and investments in associates and joint ventures.
Notes to the interim financial statements • 1312
3.3 Operating segment performance
SIX MONTHS ENDED 30 JUNE 2022 (UNAUDITED)
CINEMAMOVIOAGCCORPORATETOTAL% OF
REVENUE
NZ$mNZ$mNZ$mNZ$mNZ$m
SaaS revenue6.7 8.2 3.1 -18.0
Non-SaaS revenue29.8 0.4 5.3 -35.5
Recurring revenue36.5 8.6 8.4 -53.5
Non-recurring revenue7. 2 0.4 1.3 -8.9
Total revenue43.7 9.0 9.7 -62.4
Cost to serve(17.2)(3.1)(3.7)-(24.0)
38%
Gross profit26.5 5.9 6.0 -38.4
Gross profit %161%66%62% 62%
Sales and marketing costs(4.2)(1.4)(1.2)-(6.8)
11%
Research and development costs(8.8)(1.8)(2.0)-(12.6)
20%
General and administration costs(4.7)(0.9)(3.1)(7.1)(15.8)
25%
ECL benefit0.1 ---0.1
Foreign currency (losses) / gains(1.1)0.2 0.6 0.1 (0.2)
EBITDA17. 8 2.0 0.3 (7.0)3.1
EBITDA margin118%22%3% 5%
SIX MONTHS ENDED 30 JUNE 2021 (UNAUDITED)
SaaS revenue3.6 6.2 2.3 -12.1
Non-SaaS revenue21.4 0.1 3.7 -25.2
Recurring revenue25.0 6.3 6.0 -37. 3
Non-recurring revenue6.5 0.2 0.9 -7. 6
Total revenue31.5 6.5 6.9 -44.9
Cost to serve(11.9)(2.3)(2.6)-(16.8)
37%
Gross profit19.6 4.2 4.3 -28.1
Gross profit %162%65%62% 63%
Sales and marketing costs(2.3)(1.2)(0.7)-(4.2)
9%
Research and development costs(6.9)(1.7)(1.7)-(10.3)
23%
General and administration costs(2.8)(0.9)(2.0)(5.3)(11.0)
24%
ECL benefit3.4 0.2 0.1 -3.7
Foreign currency (losses) / gains(0.1)0.2 --0.1
EBITDA
1
10.9 0.8 -(5.3)6.4
EBITDA margin
1
35%12%0% 14%
1 EBITDA is a non-GAAP financial measure and is defined below. Gross profit % and EBITDA margin are calculated as gross margin over total revenue and
EBITDA over total revenue, respectively.
3.4 Non-GAAP financial measures
EBITDA is a non-GAAP financial measure that the CODM uses to evaluate the financial performance of Vista Group
and its operating segments, because it closely correlates to operating cashflows. It is defined as earnings before net
finance costs, income tax, depreciation, amortisation, “other gains and losses” (see section 4.4) and share of equity
accounted results from associates and joint ventures. A reconciliation is provided on the income statement.
4. Expenses and other income
4.1 Classification of expenses on the income statement
Cost to serve is the direct costs incurred in deriving Vista Group’s revenue. Examples of such costs include hosting,
technical staff, transaction fees and the cost of hardware.
Sales and marketing costs are those costs incurred by Vista Group in directly selling or marketing its products,
including associated personnel costs, sales commissions, trade shows and customer conferences.
Research and development costs include staffing and supplier costs directly associated with the researching,
developing and maintaining Vista Group’s software platforms. These costs are net of development costs which meet
the criteria of being capitalised as an intangible asset.
General and administration costs are the overhead costs incurred by Vista Group that are not directly associated
with cost to serve, sales and marketing costs, or research and development costs. Amortisation and depreciation are
separated from this category to improve a reader’s understanding of the financial statements.
4.2 Total cost to serve and operating expenses
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
SECTIONUNAUDITEDUNAUDITED
Direct cost of sales (excl. hardware and personnel) 7. 2 5.0
Hardware cost of sales¹2.4 0.5
Personnel costs39.0 32.5
Share-based payment expense1.9 3.0
Defined contribution plans and employee insurances3.9 3.0
Capitalised development11.1(7.6)(5.8)
Government grants4.5(0.2)(4.1)
Computer equipment and software2.5 1.5
Marketing costs1.4 0.2
Travel related costs1.2 0.2
ECL benefit7. 4(0.1)(3.7)
Bad debt expense7. 40.4 0.7
Foreign currency losses / (gains)0.2 (0.1)
Auditor's remuneration0.3 0.3
Other operating expenses6.8 5.3
Total cost to serve and operating expenses 59.3 38.5
1 Hardware cost of sales solely relate to the Cinema segment.
4.3 Personnel Costs
Accruals for personnel costs, including non-monetary benefits, commissions and annual leave expected to be settled
within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date.
They are measured at the amounts expected to be paid using the remuneration rate expected to apply at the time
of settlement, on an undiscounted basis. Expenses for non-accumulating sick leave are recognised when the leave is
taken and are measured at the rates paid or payable.
Vista Group has pension obligations in respect of various defined contribution plans. Vista Group pays contributions
to publicly or privately administered pension insurance plans on a mandatory or contractual basis. Vista Group has no
further payment obligations once the contributions have been paid. The contributions are recognised as an employee
entitlement expense when they are due.
Notes to the interim financial statements • 1514
4.4 Other gains and losses
‘Other gains and losses’ are excluded from operating expenses and EBITDA because they result from non-cash
activities, or are not derived in the ordinary course of business. They have been disclosed separately in order to
improve a reader’s understanding of the financial statements.
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
Restated
SECTIONUNAUDITEDUNAUDITED
Acquisition expenses5 (0.2)-
Impairment charges - Vista China investment9.4(8.9)-
Impairment charges - Vista China intangibles11.2(1.1)-
Impairment charges - Sublease asset8.1(0.9)-
Sales tax expense15.1-(0.4)
Total other gains and losses (11.1)(0.4)
Impairment charges in 2022 all relate to the cinema segment.
Vista Group completed a US sales tax economic nexus study in 2021 which revealed sales taxes should have been
charged to US-based customers (see section 15.1 for further details). The associated cost is considered one-off and
exceptional in nature, as it would not have been incurred if Vista Group collected the taxes from the customers.
4.5 Government grants (significant judgement / estimate)
Government grants are recognised when there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. Government grants are recognised in the income statement within operating
expenses on a systematic basis over the periods in which Vista Group recognises the related costs that the grants are
intended to compensate. Grants relating to capitalised development are included within the cost of the developed
intangible asset recognised.
Vista Group recognised $0.2m of government grants in the income statement during the period (30 June 2021:
$4.1m). Details of these grants are as follows:
• Research & development grants: Vista Group enrolled to receive the New Zealand Research & Development Tax
Incentive (RDTI) in 2021. Vista Group continue to believe it is entitled to this grant, however the cash is expected to
be received in late 2022 or early 2023. Estimates of the amount to be received under the RDTI have evolved as new
facts are known, and the financial statements have been prepared on the following basis:
30 June 2021: Accrued $1.3m ($1.0m to the income statement, $0.3m to capitalised development).
31 December 2021: Accrued $2.3m ($2.1m to the income statement, $0.2m to capitalised development).
30 June 2022: No change to the $2.3m accrued at 31 December 2021.
Predominantly all of the 2021 RDTI claim relates to the Transitional Support Payment, which is no longer available
in 2022. Vista Group are currently assessing whether it will be eligible for a 2022 RDTI grant for work completed
on the Vista Cloud and Movio EQ projects – however at 30 June 2022 no amounts have been accrued due to
management not yet having reasonable assurance Vista Group will be eligible.
• HSBC PPP loan: In 2020, Vista Group entered into a US$2.0m loan arrangement with HSBC as part of the
US Government paycheck protection program (PPP). This loan was a US Government designed incentive for
businesses impacted by the pandemic to keep staff employed. Vista Group was entitled to apply for this loan to be
forgiven if all employees were kept on the payroll for at least eight weeks and the money was used for payroll, rent,
mortgage interest, or utilities.
Forgiveness of this loan was obtained in H1 2021. Accordingly, the NZ$2.8m loan was de-recognised in 2021 with
the associated credit being classified as a government grant within other income.
• Wage subsidies: Vista Group received $0.2m during the period from various governments (30 June 2021: $0.3m).
The purpose of these subsidies were to help incentivise businesses to retain as many employees as possible.
5. Retriever acquisition (significant judgement / estimate)
On 16 February 2022, Vista Group announced it had acquired the assets of US entertainment software company
Retriever Software Inc. (‘Retriever’). Vista Cinema acquired Retriever’s software and customer relationships, with
an offer of employment to all current employees. This transaction resulted in Vista Cinema adding over 100 new
customers – further strengthening its market share in the US and cementing its position as the leading cinema
software provider in that market.
After applying a concentration test the transaction was classified as an asset acquisition. Accordingly, it was
determined all of Retriever’s fair value was attributed to the customer relationships.
The fair value of the net assets acquired, along with the components that form consideration, are as follows:
NZ$m
SECTIONUNAUDITED
Fair value of the net assets acquired
Customer relationships9.6
Net assets acquired 9.6
Total consideration satisfied by:
Cash consideration3.3
VGL share consideration13.23.2
Contingent cash consideration3.1
Total consideration 9.6
On the date of acquisition, 1,529,987 shares in Vista Group were issued to the vendors of Retriever.
Contingent cash consideration of $3.1m is assumed to be 100% earned and is comprised of the following two
earn-outs.
• Between US$0.5m and US$1.0m contingent cash consideration payable before 30 April 2023, based on specific
post-completion revenue targets; and
• Up to US$1.125m contingent cash consideration payable based on the retention and integration of key customers
over the 24 month period post completion.
At 30 June 2022, the contingent consideration liability had increased to $3.3m due to movements in the USD
exchange rate.
Acquisition costs in this transaction were $0.2m, which have been included on the income statement within other
gains and losses (see section 4.4).
Notes to the interim financial statements • 1716
6. Cash flows and borrowings
6.1 Reconciliation of net profit to operating cash flows
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
Restated
SECTIONUNAUDITEDUNAUDITED
Loss for the period (18.0)(3.1)
Non-cash items:
Amortisation 11.15.7 4.0
Depreciation2.7 3.4
Impairment charges4.410.9 -
Share-based payment expense1.9 3.0
Deferred tax expense(4.0)(1.4)
Non-cash finance charges0.2 0.3
Share of equity accounted loss from associates and JVs9.32.7 0.3
Unrealised foreign currency gains0.2 0.9
ECL benefit7. 4(0.1)(3.7)
Movement in revenue provision - concession discounts7. 5(0.7)(3.7)
Movement in revenue provision - credit risk7. 5(1.9)2.8
Movement in other provisions12.2(1.5)0.2
Net non-cash items 16.1 6.1
Movements in working capital:
Increase / (decrease) in related party trade and other payables0.1 (0.5)
Increase in related party trade and other receivables, net of deferred revenue(1.2)(0.5)
Decrease in trade and other payables(0.5)(3.5)
Decrease in trade and other receivables, net of deferred revenue7. 2 2.5
Decrease in net taxation receivable1.4 -
Net change in working capital 7.0 (2.0)
Net cash inflow from operating activities 5.1 1.0
6.2 Borrowings
Borrowings are initially recognised at fair value less directly attributable transaction costs and subsequently measured
at amortised cost using the effective interest method. Borrowing costs are expensed as incurred.
The table below details the movement in borrowings during the period:
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Balance at 1 January16.8 18.1
Repayments during the period(0.1)-
Drawdowns during the period-0.6
PPP loan forgiveness during the period-(2.8)
Movement in foreign exchange1.7 0.9
Total borrowings at period end18.4 16.8
Represented by:
Borrowings - external17.9 16.2
Borrowings - related parties0.5 0.6
Total borrowings at period end18.4 16.8
A schedule of all debt facilities is shown below:
EXPIRY DATE
CURRENT
LIMIT
(NZ$m)
INTEREST RATEDEBT DRAWN (NZ$m)
FACILITY PROVIDERREASON FOR LOAN30-Jun-2231-Dec-2130-Jun-2231-Dec-21
ASB - revolving creditGeneral commercial /
Future acquisitions
Jan 202640.01.78%1.57%17.9 16.2
ASB - overdraftWorking capitalOn demand 2.0 6.48%4.78%--
Related partiesWorking capitalOn demand0.5 4.00%4.00%0.5 0.6
Total borrowings at period end 42.5 18.4 16.8
A line fee of 1.45% is also paid on the credit limit of the ASB revolving credit facility.
With the ASB revolving credit facility due for maturity in January 2023, Vista Group agreed to new terms in June
2022. The facility has been extended by three years with a reduced credit limit of $42.0m (including the overdraft
facility). Details are provided in the table above.
ASB facilities are secured by an interest in Vista Group's tangible assets. Agreed covenants include:
• Gearing ratio of not greater than 2.5 times
• Interest cover of equal or greater than 3.0 times
• A rolling 12 month normalised EBITDA of the charging group not being less than 80% of Vista Group.
Vista Group has been compliant with all ASB covenants for both the current and prior reporting periods.
The related party loan has been provided by the co-shareholder of Powster. This is unsecured, incurs interest at 4%
per annum and is repayable on demand.
Notes to the interim financial statements • 1918
7. Trade and other receivables
7.1 Carrying value of trade and other receivables
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
SECTIONUNAUDITEDAUDITED
Trade receivables 36.2 38.9
Accrued revenues7. 37. 2 4.6
Revenue provision - concession discount2.3(0.7)(1.4)
Revenue provision - credit risk2.3(7.0)(8.9)
ECL provision7. 4(4.7)(4.6)
Sundry receivables 3.3 4.2
Prepayments 2.5 3.3
Vista China acquisition deposit 0.5 0.4
Total trade and other receivables 37. 3 36.5
7.2 Trade receivables
Included within trade receivables is a receivable from Vista China of $2.4m (31 December 2021: $nil).
7.3 Accrued revenues
Accrued revenues are contract assets related to revenue that are recognised on customer contracts where Vista
Group’s performance obligations have been fully satisfied, but billing is not contractually due until a subsequent date.
The movement in accrued revenues during the period was as follows:
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Balance at 1 January 4.6 5.9
Amounts included in opening balance released in the current period(3.0)(5.0)
Additional accrued revenues recognised during the period 5.4 3.5
Exchange movements 0.2 0.2
Accrued revenues at period end 7. 2 4.6
7.4 ECL provisioning (significant judgement / estimate)
For trade receivables and accrued revenues, Vista Group applies the simplified approach permitted by NZ IFRS 9
Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the
receivables.
Trade receivables and accrued revenues are written off when there is no reasonable expectation of recovery.
Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to
engage in a repayment plan with Vista Group and a failure to make contractual payments for a period of greater than
180 days past due.
To measure ECL, trade receivables and accrued revenues have been grouped and reviewed based on the number of
days past due. The ECL has been calculated by considering the impact of the following characteristics:
• The baseline characteristic considers the age of each invoice and applying an increasing ECL estimate as the trade
receivable ages.
• The aging and write off characteristics consider the history of write off related to the specific customer and the
relative size of aged debt to current debt. If the trade receivable aged over 180 days makes up more than 45% of
the total trade receivable for a specific customer, a further provision for ECL is added.
• The country, customer and market characteristics consider the relative risk related to the country and / or region
within which the customer resides and assesses the financial strength of the customer and the market position that
Vista Group has achieved within that market.
The pandemic has resulted in a significant level of risk that Vista Group is not able to recover all trade receivables
and accrued revenues due to its customers' financial distress, including where those customers suffer insolvency.
Accordingly, Vista Group applied additional judgement in determining the ECL provision at 30 June 2022.
• Specific provision: All customer invoices and accrued revenues have been reviewed with a specific provision made
for customers that are known to have liquidity / solvency issues, or where the debt is older than 180 days.
At 31 December 2021, Vista Group included a 10% insolvency risk assumption for all Cinema or Movio segment
customers. Although the pandemic continues, there have been no further developments since 31 December 2021
that the Board believe would change the outlook for Vista Group. Accordingly, at 30 June 2022, Vista Group
applied judgement by keeping the insolvency risk for all Cinema or Movio segment customers unchanged at 10%.
• General provision: Vista Group applies an ECL matrix to its trade receivables and accrued revenues to determine its
general ECL provision. This matrix was prepared using historical loss rates, updated to also include both the current
and future economic environment (both of which are largely unknown).
To avoid double counting, the specific and general ECL provisions are calculated after deducting the associated
amount recognised as a revenue provision (see section 2.3 for more details). The movement in the ECL provision
during the period was as follows:
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Balance at 1 January4.67.7
Bad debts written off(0.4)(0.7)
Change in provision0.3(2.4)
Exchange differences0.2-
ECL provision at period end4.74.6
Notes to the interim financial statements • 2120
The table below illustrates how the carrying value of the ECL has been derived:
30 JUNE 2022 (UNAUDITED)
0-90 days
NZ$m
91-180 days
NZ$m
181-270 days
NZ$m
271-360 days
NZ$m
361+ days
NZ$m
TOTAL
NZ$m
Net trade receivables and accrued revenues
1
26.6 5.2 1.5 1.5 1.4 36.2
Baseline0.4 0.1 - - - 0.5
Aging, write offs and collection--0.1 0.1 0.1 0.3
Country, customer and market0.1 -- --0.1
ECL - general provision0.5 0.1 0.1 0.1 0.1 0.9
ECL - specific provision1.2 1.2 0.1 0.2 1.1 3.8
Total ECL provision1.7 1.3 0.2 0.3 1.2 4.7
General provision effective rate1.9%1.9%6.7%6.7%7.1 %2.5%
31 DECEMBER 2021 (AUDITED)
Net trade receivables and accrued revenues¹25.44.01.31.11.833.6
Baseline0.50.10.10.1-0.8
Aging, write offs and collection----0.10.1
Country, customer and market0.1----0.1
ECL - general provision0.60.10.10.10.11.0
ECL - specific provision1.90.50.1-1.13.6
Total ECL provision2.50.60.20.11.24.6
General provision effective rate2.4%2.5%7.7 %9.1%5.6%3.0%
1 Net trade receivables and accrued revenue excludes the impact of concession discounts and credit risk provisioning.
7.5 Total revenue and ECL provisioning
The below table highlights the proportion of total provisioning made against trade receivables and accrued revenues.
Vista Group considers the cumulative ECL and revenue provisions of 28.6% were a reasonable level to provide against
trade receivables and accrued revenues.
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
SECTIONUNAUDITEDAUDITED
Trade receivables and accrued revenues 43.4 43.5
Revenue provision - concession discounts2.30.7 1.4
Revenue provision - credit risk2.37.0 8.9
ECL provision7. 44.7 4.6
Total provisioning 12.4 14.9
Total provisioning effective rate 28.6%34.3%
One of the key judgements was that 10% of core business receivables may not be collectible. The following illustrates
the sensitivity of this judgement.
30 JUNE 2022 (UNAUDITED)
5% JUDGEMENT
NZ$m
10% JUDGEMENT
NZ$m
15% JUDGEMENT
NZ$m
Revenue provision - concession discount0.7 0.7 0.7
Revenue provision - credit risk6.8 7.0 7. 2
ECL provision4.0 4.7 5.9
Total provisioning 11.5 12.4 13.8
Total provisioning effective rate26.5%28.6%31.8%
8. Net investment in sublease
8.1 Carrying amount of investment in sublease asset
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Balance at 1 January 2.7 -
Additions during the period -2.7
Impairment charges (0.9)-
Lease payments received (including interest) (0.1)(0.1)
Exchange differences -0.1
Net investment in sublease at period end 1.7 2.7
Represented by:
Current portion -0.5
Non-current portion 1.7 2.2
Net investment in sublease at period end 1.7 2.7
Vista Group reviewed the sublease asset for impairment at 30 June 2022 as the subtenant vacated the premises
with 4 years of the sublease term remaining. Vista Group has rights under the lease agreement, which it intends to
vigorously pursue, including the ability to enforce continued payment of rent until a new subtenant is found and
recovery of associated costs.
The recoverable amount under this sublease was calculated using a probability-weighted evaluation of the most
probable outcomes. The recoverable amount is sensitive to the length of time it may take to find a replacement
subtenant, along with the rental amount per square foot achieved. The range of impairment charges that could
be recognised under all likely scenarios was $nil to $1.4m, meaning any delta from the $0.9m recognised is not
anticipated to be material.
8.2 Maturity of net investment in sublease asset
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Less than one year -0.6
One to five years 2.0 2.3
More than five years --
Total undiscounted lease payments receivable 2.0 2.9
Unearned finance income (0.3)(0.2)
Net investment in sublease at period end 1.7 2.7
Notes to the interim financial statements • 2322
9. Investment in associates and joint ventures
9.1 Holdings in associates and joint ventures
INVESTMENT TYPE
COUNTRY OF
REGISTRATION
COUNTRY OF
BUSINESS
HOLDING PERCENTAGE
NAME OF ENTITY30-Jun-2231-Dec-21
Vista Entertainment Solutions (Shanghai) LimitedAssociateChinaChina47.5% 47.5%
The following disclosures have been reduced from prior reporting periods as Vista Group no longer consider
Vista China to be a material component of Vista Group's market capitalisation.
9.2 Carrying value of associates and joint ventures
VISTA CHINA
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Opening net assets 10.7 14.9
Loss for the period(5.7)(4.2)
Closing net assets 5.010.7
Vista Group weighted average shareholding47.5%47.5%
Share of closing net assets2.45.1
Goodwill20.220.2
Accumulated impairment charges(22.6)(13.7)
Carrying value of associates and JVs at period end -11.6
9.3 Share of equity accounted losses
VISTA CHINA
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
UNAUDITEDUNAUDITED
Loss for the period (5.7)(0.6)
Vista Group weighted average shareholding47.5%47.5%
Vista Group share of equity accounted losses (2.7)(0.3)
9.4 Impairment of Vista China (significant judgement / estimate)
The Chinese Government's continued 'zero-covid' public health response, including broad based lockdowns across
many major cities, has continued to negatively impact the cinema industry and box office in China. The majority of
Vista China's revenue is directly related to box office performance, and as a result was significantly reduced for the
second quarter of 2022. At the beginning of June 2022 lockdowns were eased with the box office in China showing
early signs of recovery. However, the situation in China remains uncertain and, based on the forecast box office
through to the end of 2023, Vista China is expected to continue to face significant challenges going forward.
At 30 June 2022, Vista Group has reviewed its investment in Vista China for objective evidence of impairment. In
accordance with IAS 28 Investments in Associates and Joint Ventures, Vista Group has concluded that this definition
was met due to there being a 'significant financial difficulty of the associate or joint venture' (subsection 41A(a)).
Based on the information available and the continued uncertainty in the market in China, Vista Group has estimated
the recoverable amount of its investment in Vista China at 30 June 2022 to be nil. An impairment charge of $8.9m has
been recognised on the income statement during the period (see section 4.4).
10. Goodwill
Vista Group reviewed the carrying value of its goodwill for indicators of impairment at 30 June 2022. No such
indicators were noted. In accordance with NZ IAS 36 Impairment of Assets, no impairment review was performed
at 30 June 2022.
11. Other intangible assets
11.1 Carrying amount of intangible assets
30 JUNE 2022 (UNAUDITED)
INTERNALLY
GENERATED
SOFTWARE
NZ$m
SOFTWARE
LICENSES
NZ$m
INTELLECTUAL
PROPERTY
NZ$m
CUSTOMER
RELATIONSHIPS
NZ$m
TOTAL
NZ$m
Gross carrying amount
Balance at 1 January50.6 4.6 2.6 6.0 63.8
Additions7. 6 --9.6 17.2
Disposals(1.3)(0.1)--(1.4)
Impairment charges(1.3)---(1.3)
Exchange differences0.1 -(0.1)0.8 0.8
Balance at period end55.7 4.5 2.5 16.4 79.1
Accumulated amortisation
Balance at 1 January(15.7)(2.4)(1.8)(4.1)(24.0)
Current period amortisation(4.4)(0.4)(0.1)(0.8)(5.7)
Disposals1.3 0.1 --1.4
Impairment charges0.2 ---0.2
Exchange differences-0.1 0.1 (0.3)(0.1)
Balance at period end(18.6)(2.6)(1.8)(5.2)(28.2)
Intangible assets at 30 June 202237.1 1.9 0.7 11.2 50.9
31 DECEMBER 2021 (AUDITED)
Gross carrying amount
Balance at 1 January38.1 4.9 2.7 6.8 52.5
Additions12.6 ---12.6
Disposals (0.1)(0.1)(0.1)(0.8)(1.1)
Exchange differences-(0.2)--(0.2)
Balance at period end50.6 4.6 2.6 6.0 63.8
Accumulated amortisation
Balance at 1 January(9.4)(2.1)(1.7)(4.2)(17.4)
Current period amortisation(6.4)(0.5)(0.2)(0.7)(7.8)
Disposals0.1 0.1 0.1 0.8 1.1
Exchange differences-0.1 --0.1
Balance at period end(15.7)(2.4)(1.8)(4.1)(24.0)
Intangible assets at 31 December 202134.92.20.81.939.8
Cash additions for the period were $10.9m including $3.3m cash consideration transferred for the Retriever customer
relationships (31 December 2021; $11.9m).
11.2 Impairment testing of internally generated software
Vista Group reviewed the carrying value of its internally generated software assets for indicators of impairment at
30 June 2022 and determined all intangible assets owned by Vista Group relating to Vista China specific software
was fully impaired. An impairment charge of $1.1m has been recognised on the income statement during the period
(see section 4.4). No other indicators of impairment were noted.
Notes to the interim financial statements • 2524
12. Provisions
A provision is a liability of uncertain timing or amount and is recognised when Vista Group has a present obligation
(legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.
12.1 Carrying amount of provisions
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
SECTION UNAUDITEDAUDITED
US sales taxes 12.31.3 2.8
Lease dilapidations0.40.4
Total provisions at period end 1.73.2
Represented by:
Current1.32.8
Non-current0.40.4
Total provisions at period end 1.73.2
12.2 Movement in provisions
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
SECTION UNAUDITEDAUDITED
Balance at 1 January3.23.9
US sales taxes12.3(1.5)0.8
Organisation restructuring-(0.1)
Movement in lease dilapidations-(0.1)
Onerous contracts-(0.8)
Other-(0.5)
Total provisions at period end 1.73.2
12.3 US sales tax provision
One of the primary markets for Vista Group’s products is the United States. Sales tax obligations in the United States
can arise in individual states where Vista Group is deemed to have a sales tax nexus. With the assistance of external
US sales tax experts, Vista Group completed an economic nexus study during H2 2021. This involved a full review of all
sales in each state from the end of 2018 (the date when states were able to first legislate nexus testing) to determine
if an economic sales tax nexus was triggered.
The result of the economic nexus review was that Vista Group had an obligation to register and collect sales tax
in some states. The total obligation was estimated to be $2.8m (of which $1.3m relates to 2019, $0.7m relates to
2020 and $0.8m relates to 2021). Vista Group are finalising voluntary disclosure agreements with all relevant state
departments with $1.3m still expected to be paid.
The following represents the provision (net of any reasonably expected penalty or tax waivers):
30 JUNE 202231 DECEMBER 2021
NZ$mNZ$m
UNAUDITEDAUDITED
Balance at 1 January2.82.0
Sales tax expense(0.2)0.5
Use of money interest(0.1)0.1
Repayments during the period(1.3)-
Exchange differences0.10.2
US sales tax provision at period end 1.32.8
13. Capital structure
13.1 Earnings per share
Vista Group presents basic and diluted earnings per share (EPS) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to owners of the parent by the weighted average
number of ordinary shares in issue during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to owners of the parent and the weighted
average number of ordinary shares in issue during the period for the effects of all dilutive potential ordinary shares,
which for Vista Group comprise share rights and performance rights. Potential ordinary shares are treated as dilutive
when their conversion to ordinary shares would decrease EPS or increase the loss per share.
NUMBER OF SHARES (MILLIONS)
30 JUNE 202230 JUNE 2021
Restated
UNAUDITEDUNAUDITED
Weighted average ordinary shares for basic EPS (millions)232.6228.7
Effect of dilution:
Share options and awards (millions)4.85.0
Weighted average ordinary shares adjusted for the effect of dilution237.4233.7
Loss for the period attributable to owners of the parent (NZ$m)(17.8)(3.3)
Basic and diluted EPS (cents)($0.08)($0.01)
13.2 Contributed capital
At 30 June 2022, there were 233,192,093 shares in issue (31 December 2021: 231,225,495). The following reflects
where these shares were allocated:
MILLIONS OF SHARESNZ$m
30 JUNE 202231 DECEMBER 202130 JUNE 202231 DECEMBER 2021
UNAUDITEDAUDITEDUNAUDITEDAUDITED
Share issued and fully paid:
Balance at 1 January231.2228.6131.3126.0
Ordinary shares issued during the period:
Shares issued as a part of Retriever asset
acquisition
1.5-3.2-
Employee incentives0.52.60.94.7
Tax on share-based payments--(0.2)0.6
Total contributed equity at period end233.2231.2135.2131.3
Vista Group issued 1,529,987 shares on 16 February 2022 which formed part of the consideration transferred for the
Retriever asset acquisition (see section 5).
Notes to the interim financial statements • 2726
14. Financial instruments
14.1 Financial instruments by category
30 JUNE 2022 (UNAUDITED)
FINANCIAL ASSETS
AT AMORTISED COST
NZ$m
FINANCIAL
INSTRUMENTS
AT FAIR VALUE
THROUGH P&L
NZ$m
FINANCIAL LIABILITIES
AT AMORTISED COST
NZ$m
TOTAL
NZ$m
Cash51.9 - - 51.9
Trade receivables23.8--23.8
Sundry receivables3.3--3.3
Net investment in sublease1.7--1.7
Total financial assets80.7--80.7
Borrowings - external - -17.9 17.9
Borrowings - related parties - -0.5 0.5
Trade payables - -4.7 4.7
Sundry payables - -4.6 4.6
Lease liabilities - -20.3 20.3
Contingent consideration -3.3 -3.3
Total financial liabilities-3.348.051.3
31 DECEMBER 2021 (AUDITED)
Cash60.4--60.4
Trade receivables24.0--24.0
Sundry receivables4.2--4.2
Net investment in sublease2.7--2.7
Total financial assets91.3--91.3
Borrowings - external--16.216.2
Borrowings - related parties--0.60.6
Trade payables--2.12.1
Sundry payables--5.95.9
Lease liabilities--22.622.6
Total financial liabilities--47. 447. 4
Vista Group's financial instruments that are measured after initial recognition at fair value 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 current period, there have been no transfers between fair value measurement levels. The contingent
consideration of the Retriever asset acquisition is subsequently fair valued using level 3 measurements, such as
the probability Vista Group deem the earn-outs are likely to be earned and movements in exchange.
15. Other disclosures
15.1 Restatement of prior period errors
Vista Group completed a US economic nexus sales tax study in H2 2021 (see section 12.3). The result of the study was
that Vista Group had an obligation to register and collect sales tax in some states. The total obligation was estimated
to be $2.8m (of which $1.3m relates to 2019, $0.7m relates to 2020 and $0.8m relates to 2021).
These interim financial statements have been restated as the prior period adjustment of $1.3m on the statement of
changes in equity at 1 January 2021 is considered to be a material prior period error.
The following table below shows the restated income statement and statement of other comprehensive income.
30 JUNE 2021
Previously Reported
Adjustment
30 JUNE 2021
Restated
SECTION NZ$m NZ$mNZ$m
Other gains and losses4.4-(0.4)(0.4)
Taxation expense(0.5)(0.1)(0.6)
Loss for the period (2.6) (0.5)(3.1)
15.2 Related parties
Related parties are materially consistent with those disclosed in the 2021 Annual Report. The following table
represents transactions with related parties excluding key management personnel.
AMOUNTS OWED BY RELATED PARTIESAMOUNTS OWED TO RELATED PARTIES
30 JUNE 202231 DECEMBER 202130 JUNE 202231 DECEMBER 2021
NZ$mNZ$mNZ$mNZ$m
UNAUDITEDAUDITEDUNAUDITEDAUDITED
Associates and joint ventures2.4 -(1.3)(1.2)
Vista Group's associate and joint venture related party transactions were as follows:
ASSOCIATES AND JOINT VENTURES
30 JUNE 202230 JUNE 2021
NZ$mNZ$m
UNAUDITEDUNAUDITED
Receiving of services-(0.2)
Rendering of services2.4 2.3
Total related party transactions2.42.1
Vista Group recognised $0.9m of maintenance revenue from Vista China during the period (30 June 2021: $1.1m), with
$1.5m being provisioned from the total amount due.
Notes to the interim financial statements • 2928
Vista Group International Limited
Shed 12, City Works Depot
90 Wellesley St West
Auckland 1010
New Zealand
+64 9 984 4570
info@vistagroup.co.nz
vistagroup.co
15.3 Going concern
These consolidated interim financial statements have been prepared on a going concern basis, which requires the
Board to have reasonable grounds to believe that Vista Group will be able to pay their debts as and when they
become due. The minimum requirement by NZ IAS 1 Presentation of Financial Statements being at least, but not
limited to, twelve months from the end of the reporting period.
Vista Group has prepared cash flow projections factoring in the current market, covering a period of at least twelve
months after these consolidated interim financial statements have been authorised for issue. This takes into account
forecast revenue, operating cash flows, forecast capital expenditure and Vista Group’s liquidity position.
At 30 June 2022, Vista Group had $76.0m in liquidity, with $51.9m in cash and $24.1m of undrawn ASB revolving
credit and overdraft facilities. In addition to this, Vista Group’s EBITDA and operating cash flows for the half year have
remained positive. The ASB facilities have also been renewed and are now due to mature in January 2026.
Due to the above, the Board determined that the going concern basis of accounting was appropriate in the
preparation of these consolidated interim financial statements.
15.4 Other notices
There were no significant capital commitments or contingent liabilities for Vista Group at 30 June 2022
(31 December 2021: $nil). There were no dividends declared or paid to shareholders during the period
(31 December 2021: $nil).
15.5 Events after balance date
On 22 August 2022, Vista Group released a NZX/ASX market announcement responding to media speculation
regarding a major customer based in the United Kingdom and United States potentially entering into a bankruptcy
process. Vista Group is continuing to monitor the situation closely, but does not expect it to have a material impact
on these interim financial statements.
There were no other significant events between balance date and the date these financial statements were approved
for issue.
30
---
Vista Group
International
Limited
Interim
Results
2022
29 August 2022
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 or subscription
or purchase of, or solicitation of an offer to buy or subscribe for, financial
products in Vista Group or any of its related companies;
•does not constitute a recommendation or investment or any other type
of advice, and may not be relied upon in connection with any purchase
or sale of financial products in Vista Group or any of its related companies;
•should be read in conjunction with, and is subject to, Vista Group’s
financial statements, market releases and information available on
Vista Group’s website (www.vistagroup.co.nz) and on NZX Limited’s
website (www.nzx.com) under ticker code VGL;
•may include projections or forward-looking statements about Vista Group
and its related companies and the environments in which they operate.
Such forward-looking statements are based on significant assumptions and
subjective judgements which are inherently subject to risks, uncertainties
and contingencies outside of Vista Group’s control.
•Although VistaGroup’smanagement may indicate and believe the
assumptions underlying the forward-looking statements are reasonable,
any assumptions could prove inaccurate or incorrect and, therefore, there
can be no assurance that the results contemplated in the forward-looking
statements will be realised. Vista Group’s actual results or performance
may differ materially from any such forward looking statements; and
•may include statements relating tothepast performanceofVista Group
and/or its related companies, whichare not, andshould not be regarded as,
a reliable indicatoroffuture performance.
While all reasonable care has been taken in compiling this presentation,
Vista Group and its related companies, and their respective directors, employees,
agents and advisers accept no responsibility for any errorsor omissions. None of
Vista Group or its related companies, or any of their respective directors,
employees, agents or advisers makes any representation or warranty, express or
implied, as to the accuracy or completeness of the information in this presentation
or as to the existence, substance or materiality of any information omitted from
this presentation.
Unless otherwise stated, all information in this presentation is expressed at the
date of this presentation and all currency amounts are in NZ dollars.
Agenda
01
Vista Group summary
Kimbal Riley, Group Chief Executive
02
Financial results
Matt Cawte, Chief Financial Officer
03
Operational highlights
Kimbal Riley, Group Chief Executive
04
Outlook
05
Questions
Vista Group’s purposeis to bring more
people together
to experience the magic
of movies and cinema by creating the
platform that connects the industryand
powers the moviegoer experience
Vista Group – H1 2022
5
Back in the Picture
•Moviegoer sentiment has recovered– box office growth is following
•Interest in the Vista Cloud platform is well ahead of our projections
•Really positive feedback from customers on our cloud platform
•Blockbusters such as Top Gun: Maverickand Jurassic Park Dominion
are driving box office in all territories
•Group revenue up 39% over H1 2021 – withrecurring revenue up
43%, now 86%of total
•Resilient EBITDA
1
and operating cashflow results
•Cash reserves maintained – disciplined financial management
“Our conclusion is expensive direct-to-
streaming movies......is no comparison to
what happens when you launch a film in
the theaters... and so we’re making a
strategic shift.”
CEO,Warner Discovery (Aug’22)
“We are delighted with the ease of use
and capability of the Vista Cloud
software, and we look forward to
improving how we serve our guests on
the new platform.”
CEO,NCG (Aug'22)
1. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation, amortisation, “other gains and
losses” (see section 4.4 of the 2022 Interim Report) and share of equity accounted results from associates and joint ventures.
Financial results
Financials
Total Revenue
$62m +39%
Recurring Revenue
1
$54m +43%
SaaS Revenue
1
$18m +49%
EBITDA
2
$3m +11% (adj ECL
3
)
Operating Cashflow
$5m +$4m
1. For definitions of Recurring Revenue and SaaS Revenue, refer to section 2.1 of the 2022 Interim Report.
2. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation, amortisation, “othergains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accounted results from associates and joint ventures.
3. ECL is the non-cash Expected Credit Loss provision.
7
Trading performance
•Revenue ahead of guidance, Retriever
and hardware upsides
•Good recurring revenue growth, both
recovery and new
•Year-on-year improvement of 11% on
EBITDA
2
, after adjusting for ECL
3
•Strong box office supporting
customer recovery
•Good cost management, despite
inflation and people cost pressure
•Loss before tax primarily driven by
non-cash impairment of Vista China
1. See section 15.1 of the 2022 Interim Report for information of restatement of prior period US sales tax obligations.
2. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation, amortisation, “othergains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accounted results from associates and joint ventures.
3. ECL is the non-cash Expected Credit Loss provision.
NZ$m (Six Months – Unaudited)30 Jun 202230 Jun2021
1
% Change
Revenue62.444.9+39%
Expenses(59.2)(42.3)+40%
Expected Credit Loss0.13.7
Foreign exchange (losses)/gains(0.2)0.1
EBITDA
2
3.16.4-52%
EBITDA
2
excl ECL
3
3.02.7+11%
Depreciation and amortisation
Net finance costs
(8.4)
(0.8)
(7.4)
(0.8)
Other (incl. impairment, share of associates)(13.8)(0.7)
Loss before tax(19.9)(2.5)
Net lossattributable to
Vista Group shareholders
(17.8)(3.3)
8
The recovery story
•Strong 1H22 result
•Good recurring revenue growth
•ARR
4
now $112m
•Retriever and hardware upside
•Revenue provision for Vista China
maintenance
•Headcount growth and in market
activity accelerating (marketing,
travel and hosting)
•Inflation watch on price and costs
1. For definitions of Recurring Revenue and SaaS Revenue, refer to section 2.1 of the 2022 Interim Report.
2. ECL is the non-cash Expected Credit Loss provision.
3. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation, amortisation, “othergains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accounted results from associates and joint ventures.
4. ARR is AnnualisedRecurring Revenue, calculated as trailing 3 monthrecurring revenue multiplied by four.
NZ$m
(Six Months – Unaudited)
1H202H201H212H211H22
% of
Rev
Recurring Revenue
1
32.932.637.344.153.5
86%
Non-Recurring Revenue
1
11.910.17.69.18.9
14%
Total revenue44.842.744.953.262.4
Cost to serve19.018.516.819.624.0
38%
Gross profit25.824.228.133.638.4
62%
Sales and marketing5.14.74.25.16.8
11%
Research and development9.69.210.312.012.6
20%
General and administration13.213.511.015.215.8
25%
ECL
2
expense/(credit)5.81.1(3.7)0.6(0.1)
Exchange (gains)/losses(1.4)0.6(0.1)0.60.2
EBITDA
3
(6.5)(4.9)6.40.13.1
5%
EBITDA
3
excl ECL
2
(0.7)(3.8)2.70.73.0
9
Operating segments
•All segments showed strong revenue
growth as a result of sustained box
office recovery
•Good EBITDA
1
margins across
operating segments – adjusting for
ECL
2
reversals in 1H21 ($3.7m)
30 June 2022 (Six Months – Unaudited)
NZ$mCinemaMovioAGCCorporateTotal
Revenue43.79.09.7-62.4
EBITDA
1
7.82.00.3(7.0)3.1
EBITDA % of revenue18%22%3%5%
30 June 2021 (Six Months – Unaudited)
NZ$mCinemaMovioAGCCorporateTotal
Revenue31.56.56.9-44.9
EBITDA
1
10.90.8-(5.3)6.4
EBITDA % of revenue35%12%14%
Revenue growth39%38%41%39%
1. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation, amortisation, “othergains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accounted results from associates and joint ventures.
2. ECL is the non-cash Expected Credit Loss provision.
10
Financial position
•Strong balance sheet maintained
andcash position of $51.9m ($33.5m
net of borrowings)
•Updated banking facilities to 2026
•Receivables aging improved, with
most customers up to date on current
billings, long-term aged balances
remain key focus area
•1H22 includes acquisition of Retriever
and the impairment of Vista China
NZ$m30 Jun 2022
(Unaudited)
31 Dec 2021
(Audited)
% Change
Cash51.960.4-14%
Receivables and other current assets38.239.2-3%
Non-current assets145.9143.5+2%
Current liabilities50.747.6+7%
Non-current liabilities35.035.7-2%
Net assets / total equity150.3159.8-6%
11
Cashflow
•Positive operating cash, increased
investment in Cloud journey, monthly
operating cash burn
1
of $0.6m in 1H22,
and $0.1m for the last 12 months
•Good collectionsduring the half
•One off cash movements include
Retriever acquisition, $3.3m, and US
sales tax, $1.5m
•Net cash after borrowings of $33.5m
NZ$m(Six Months Ended – Unaudited)30 Jun 202230 Jun 2021% Change
Receipts from customers63.445.6+39%
Payments to suppliers & employees(57.2)(43.1)+33%
Tax & interest(1.1)(2.4)
Pandemic related subsidies / tax deferrals-0.9
Cash flow from operating activities5.11.0+410%
Retriever acquisition(3.3)-
Capitaliseddevelopment(7.6)(5.8)+31%
Other investing activities(0.7)(0.5)
Pandemic related support (US PPP loan)-(2.8)
Other financing activities(2.6)(1.0)
Net movement in cash held(9.1)(9.1)
Opening cash60.467.1
Foreign exchange differences0.60.1
Closing cash51.958.1-11%
12
1. Operating cash burn is the movement in cash for the period, less the investment in Retriever and settling of US sales tax provisions.
Operational highlights
Vista Group Strategy
Support our
customers to rebuild
their business
Expand our core platform
that delivers value
to our customers and
connects moviegoers
Create and
invest in new
opportunities
14
Vista Cinema
•Blockbusters driving box office
globally
•Strong demand for Vista Digital
Platform as well as 'full‘’ Cloud
•Cinesa(Odeon Spain/Portugal)
rollout continues at pace, will
complete during 2nd half
•Positive feedback from 2nd Vista
Cloud implementation (USA)
•Veezi site growth flat – driven by
focus on ARPU
•Retriever acquisition accretive in
revenue and EBITDA
1
•3rd development squad added to
Mexico development hub
•Estimated global enterprise market
share (20+ screens), excluding China,
remains at 51% –net of additions and
closures
Revenue
$43.7m
+39% vs 1H21
EBITDA
1
$7.8m
Vista Cinema provides cinema management software
to the world’s largest cinema exhibitors
15
1. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation,amortisation, “other gains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accountedresults from associates and joint ventures.
Vista Cinema site count
1
(compared to 31 Dec 2021)
Enterprise Market Share
2
51%
New Enterprise Sites
46
1. Management estimate -dueto the pandemic, market data is less available. New sites, closures and losses for Veezi, India and China are aggregated
2. Global market share excluding China.
MarketChannel
31 DecNewClosures30 Jun
2021Sites
1
/ Losses
1
2022
Enterprise
Direct5,12846(116)5,058
India1,509971,606
China4255430
Total Enterprise7,062148(116)7,094
Independent
Veezi93341974
Veezi China147147
TOTAL8,142189(116)8,215
16
The Vista Cloud journey
What we’ve achieved to date
•First customers live
•#1 transitioned from managed service
•#2 new to Vista Group
•Customer experience has been positive
– both implementation and operations
•#3 customer in implementation
Where we are now
•Excellent pipeline with significant
number of Vista Cinema customers
actively engaged
•Commercial outcomes remain ahead of
our expectations
•Feature parity on Vista Cloud
•Significant effort required to implement
and manage operations
•Detailed roadmap of engineering laid
out to automate / simplify / make easy
What’s coming in 2023 and
beyond
•Engineering to improve scalability
and manageability and reduce cost
to serve
•Roadmap for cloud only innovation
(egBI for Executives)
•Onboarding of additional customers
17
Movio
Movio Cinema
•Connections and Active Moviegoer counts
continue to grow month on month
•Volumes for most customers ahead of
equivalent months pre-pandemic
•Adding at least one new customer every
month
•Next generation Movio Cinema on track
•Operational services demand increasing
driven by ongoing staff shortages at
exhibitors
Movio Research
•Research platform development continues
with the addition of enhanced data points
•Campaign measurement deals have been
signed with TikTok and Snap
Movio Media / Madex
•Exhibitors trialling Madexin Europe,
Australia, and the USA
•Movio Media had a quieter first half –
however a major studio has signed with
activity starting in Q3
Revenue
$9.0m
+38% vs 1H21
EBITDA
2
$2.0m
Global leader in data-driven marketing, providing products and
services to exhibitors, studios and film advertising specialists
1. Madexis the market brand for the Moviegoer AudienceData Exchange.
2. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation,amortisation, “other gains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accountedresults from associates and joint ventures.
18
Additional Group Companies
(Portfolio)
Numero • Maccs
Box office reporting and world leading
theatrical distribution software
•Solid financial results with revenue and
EBITDA
1
growth
•Mica customer numbers continue to
trend upwards with 25 live now
•Continuing increase in coverage in each
market covered by Numero – exclusive
deal with a major studio for
international reporting
Flicks
Movie and cinema review and
showtime guide
•Unique user growth ahead of plan – just
under 2m in June (a record)
•Encouraging mix of cinemaand streaming
advertising
Powster
World leading film marketing products
•Showtimes have returned to strong pre-
pandemic levels
•Creative revenue driven by Netflix and
growing relationship with Twitch
Revenue
$9.7m
+41%
EBITDA
1
$0.3m
19
1. EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation,amortisation, “other gains and losses”
(see section 4.4 of the 2022 Interim Report) and share of equity accountedresults from associates and joint ventures.
Associate companies
•Public health response to cases of COVID has made
for a tough first half, outlook remains uncertain and
government policies fluid
•Conservative decision to take non-cash impairment
charge (against the non-cash fair value gain from the
2016 partial divestment)
•Vista China continues to operate independently and is
seeking to broaden the potential revenue base
20
Vista China
Outlook
Industry outlook
•Universal recognition of the value of theatrical experience
and an exclusive window across all major studios
•Very strong performance of blockbuster titles a highlight
•Pipeline of content growing in 2023 and beyond as
production gears up again post-pandemic
•Average revenue per film equal to or higher in 2022 than in
2019
•Sub-major studios now releasing theatrically
22
Film Slate 2022 - 2023
41.9
43.6
45.2
12.7
22.8
38
46.4
48.7
50.7
52.7
7.7
7.97.9
1.9
3.3
5.7
7.1
7.3
7.5
7.7
$5.00
$5.20
$5.40
$5.60
$5.80
$6.00
$6.20
$6.40
$6.60
$6.80
$7.00
0
10
20
30
40
50
201720182019202020212022(f)2023(f)2024(f)2025(f)2026(f)
Box Office (US$B)Admissions (B)Average Ticket Price US$
CAGR
2019-25
Box Office
2.2%
Admissions
-0.4%
Average Ticket Price
2.6%
In its Global
Entertainment & Media
Outlook 2022-26, PwC
predicts “Cinema
revenues will rise to
record highs as
attendance rebounds.”
Global Cinema Revenue Forecast - PWC
Source: PwC, Omdia
Vista Group Outlook
•Customer interest in Vista Cloud, Digital and EQ platform is well
ahead of our expectations
•The commercial outcomes we are achieving with the platform
remain robust and ahead of our initial projections
•Upgraded full year revenue guidance for 2022 in the range of
$123m – $128m
•Operating cash flow for 2022 to remain positive, with investment
primarily in the platform
25
Questions
---
_________________________________________________________________________________________
Vista Group International Ltd, Shed 12, City Works Depot, 90 Wellesley St West, Auckland 1010, NZ
Media Release
29 August 2022, Vista Group International Ltd, Auckland, New Zealand
Vista Group upgrades revenue guidance as box office growth continues
Auckland, New Zealand, 29 August 2022 – Vista Group (VGL) reported its interim results for the
period ending 30 June 2022 today, with upgraded revenue guidance for the full year to 31 December
2022 of $123-128m, reflective of a strong global cinema industry recovery. Vista Group had
previously projected revenue of $118-123m.
Kimbal Riley, Vista Group Chief Executive, commented: “We are very pleased to present a return to
good, solid growth in our interim results. The increase in recurring revenue is a welcome indication
of the cinema industry’s renewed strength and, after pandemic challenges, it’s heartening to see
continued box office growth.
“Our sustained focus on innovation has seen our SaaS platform, Vista Cloud, go live with a second
customer, and we were pleased to announce the first major cinema circuit, with over 300 sites, has
also signed up for the offering. Meanwhile, Movio is on the cusp of an exciting product launch that
will see significant improvements to the depth, functionality and usability of its cinema offering. A
packed film slate further signals increased momentum and solidifies our role in creating the platform
that connects the industry and powers the moviegoer experience.”
Industry Highlights
• Global cinema industry is showing strong recovery post-pandemic – and there’s more to come
• Box office growth and momentum sustained across all major markets
• SaaS platform strategy increases Vista Group’s relevance as the industry rebounds.
Financial Highlights
• Total revenue of $62.4m, an improvement of 39% compared to the first half of 2021, and
recurring revenue up 43%
• EBITDA
1
of $3.1m and positive operating cashflow of $5.1m
• Accelerated investment across the SaaS platform, with monthly cash burn of only $0.1m over the
last 12 months
Operational Highlights
• Major cinema enterprise circuit signed to Vista Cloud with over 300 sites
• Strong customer interest in the SaaS platform
• Maintained 51% market share of the estimated global enterprise market (20+ screens), excluding
China.
The trading performance for the first half of 2022 was strong and reinforced a healthy return to form
for the industry. The film slate continues to be solid, with some of the highest-grossing films of all
time, including Top Gun: Maverick, having been released in recent months. The pipeline of content
is growing in 2023 and beyond as production gears up again post-pandemic, with an average
revenue per film in 2022 that was equal to or higher than in 2019.
_________________________________________________________________________________________
Vista Group International Ltd, Shed 12, City Works Depot, 90 Wellesley St West, Auckland 1010, NZ
Vista Group’s reported revenue of $62.4m was up 39% on the first half of 2021, with recurring
revenue up 43%, while EBITDA
1
of $3.1m was up 11% on the first half of 2021 (after adjusting for
expected credit loss provisions).
Vista Cinema, Vista Group’s largest business, reported revenue up 39% to $43.7m, with recurring
revenue up 46% due to the improved box office, while EBITDA
1
of $7.8m was up from the first half of
2021 (after adjusting for expected credit loss provisions). Market share remains difficult to confirm,
but Vista Group estimates it has retained 51% share of the global enterprise market (20+ screens),
excluding China.
Vista Cloud is live with two customers, including the transition of our first US customer from the
Retriever platform in the United States. A third customer has signed up with the major Latin
American enterprise customer that is expected to transition over 300 sites to Vista Digital, and then
Vista Cloud, over time. The SaaS platform focussed developments continue to represent the
majority of Vista Group’s innovation spend.
Movio, the global leader in data analytics and campaign management solutions for the cinema
industry, reported revenue up 38% to $9.0m against the first half of 2021, as variable fees increased
with the strength of the global box office. EBITDA
1
of $2.0m was up more than 100% from the first
half of 2021. Movio’s new product is in beta with customers and is due to go live in Q4 of 2022. This
will largely complete the transformation of its core technology that was started in mid-2020.
Box office reporting platform, Numero, and film distribution software business, Maccs, reported
revenue up 19% with 25 customers now live on Maccs’ product, mica. The geographic expansion of
flash and electronic box office reporting continues to support strong and stable revenue growth.
Creative studio Powster’s revenue was up 91% with a rebound of the global box office increasing
demand for Powster’s Showtimes platform and creative services, including expanded relationships
with both Netflix and Twitch.
Cinema and streaming discovery platform, Flicks, reported revenue up 16% with strong advertising
and its continued growth in Australia and the United Kingdom. Unique users are now approaching
2m across New Zealand, Australia and the Unit ed Kingdom.
Vista Group’s balance sheet remains strong with cash of $51.9m (or $33.5m net of borrowings) and
the extension of the ASB debt facilities. Investing cashflow increased from the first half of 2021, with
the asset acquisition of Retriever and accelerated development of the SaaS platform.
For further information please contact:
Matt Cawte
Chief Financial Officer
Vista Group International Limited
Contact: +64 9 984 4570
(1 )
EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation,
amortisation, “other gains and losses” (see section 4.4 of the interim report) and share of equity accounted results from
associates and joint ventures.
---
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 2022
Previous Reporting Period 6 months to 30 June 2021
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$62,400 39.0%
Total Revenue $62,400 39.0%
Net profit/(loss) from
continuing operations
($18,000) (480.6%)
Total net profit/(loss) ($18,000) (480.6%)
Interim Dividend
Amount per Quoted Equity
Security
No interim dividend will be paid in 2022
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.10463477 $0.19360635
(restated
1
)
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 Report for the six months ended 30 June 2022 that
accompany this announcement.
Authority for this announcement
Name of person authorised
to make this announcement
Matt Cawte – Chief Financial Officer
Contact person for this
announcement
Matt Cawte – Chief Financial Officer
Contact phone number
09 984 4570
Contact email address
matt.cawte@vista.co
Date of release through MAP
29 August 2022
Unaudited financial statements accompany this announcement.
1
See section 15.1 of the 2022 Interim Report for information of restatement of prior comparable period US sales tax obligations.
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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