Blockbusters such as Top Gun: Maverick, starring Tom Cruise, is driving box office and helping Vista bounce back from Covid disruption. Photo / AP
Blockbusters such as Top Gun: Maverick, starring Tom Cruise, is driving box office and helping Vista bounce back from Covid disruption. Photo / AP
Cinema software company Vista Group has upgraded its revenue guidance for the full year as box office growth improves – with blockbusters like Top Gun: Maverick and the latest Jurassic Park movie helping.
The Auckland-based company that dominates cinema management and marketing software worldwide still reported a net loss for the first half but saw positive revenue and earnings growth.
The net loss for the six months June 30 was $18 million, which included $13.8m of non-cash impairment charges related to Vista China, equity accounted losses and acquisition costs. The loss widened from $2.6m reported for the previous corresponding period.
Total revenue climbed 39 per cent on the same period a year ago to $62.4m, with recurring revenue up 43 per cent.
Earnings before interest, tax, depreciation and amortisation (ebitda) rose 11 per cent to $3m.
Vista said it upgraded its revenue guidance for the full year to $123-128m (from its previous range of $118-123m), noting box office growth and momentum across all major markets.
"We are very pleased to present a return to good, solid growth in our interim results," chief executive Kimbal Riley said.
"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."
Vista told the NZX that trading in the first half was strong, reinforcing a "healthy return to form" for the industry.
Hollywood production is firmly back into gear, 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," the company said.
Riley highlighted the launch of SaaS platform Vista Cloud, with a second customer on board, as an example of the company's focus on innovation, while a third customer has signed up that is expected to transition over 300 sites.
"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," Riley said.
Vista Cinema, the group's largest business, reported revenue up 39 per cent to $43.7m, with recurring revenue up 46 per cent due to the improved box office, while ebitda of $7.8m was up from the first half of 2021 (after adjusting for expected credit loss provisions).
Hollywood blockbusters are back! says Vista Group in its half year report. Photo / AP
In terms of market share, Vista estimated it had retained 51 per cent share of the global enterprise market (20-plus screens), excluding China.
Movio, which provides data analytics and campaign management solutions for the cinema industry, reported revenue up 38 per cent to $9m against the first half of 2021, and ebitda of $2m - up more than 100 per cent from the first half of 2021.
Vista's balance sheet includes cash of $51.9m (or $33.5m net of borrowings) and the company has updated banking facilities to 2026.
The company moved fast in April 2020 to raise $65m from investors to keep it well-capitalised through the coronavirus pandemic, which significantly impacted almost all its customers.
