Vista is growing again. Plenty of cash in the bank and people are returning to the movie theatre.
Insert from Craigs March 2022 note
Cloud is the key
Vista Cloud was launched in August, with the first customer going live in January, a few months behind schedule. We expect Vista to transition 1-2% of its installed base over in FY22, with momentum growing in FY23 and beyond as Vista starts to onboard larger customers. The company remains confident c35-40% of the base can transition by the end of FY25, although we think the business will need to hire more engineers to deliver on these targets. Importantly, Vista has indicated that, based on deals already signed, recurring revenue per screen is likely to increase more than the 50-150% previously indicated from moving to the cloud.
Retain Overweight, $2.62 target price
I'm picking that the cinema "experience " is going to thrive and continue to recover. Theres a place for streaming too,
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/theater-stocks-buoyed-by-return-of-big-budget-blockbusters-70847143
Gosh nearly $2.00. Investors waking up that the world is open.
$2.00 reached. onwards and upwards as the crowds return.
Disc, Holder
Upgraded forecast..... future looking good.......but still losing money.
https://www.nzx.com/announcements/397784
Guidance Update
Vista Group upgrades its revenue guidance for the full 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.
https://deadline.com/2022/09/bankruptcy-court-cineworld-financing-regal-cinemas-1235112627/
Vista chief executive Kimbal Riley said the group's expectation was Cineworld would continue to operate and pay on time.
"We will have a discussion about the amount outstanding that was due at the time they went into Chapter 11. From our point of view, we wish them very well," Riley said.
He wouldn't disclose the amount owed but said it was "not material" and Vista hoped to get full recovery.
"We will try to recover that to the extent we can and, in all likelihood, it will be all of it but you can never tell that."
Everybody mentioned in this piece by Jenny Ruth remains very positive about Vista - like we are getting the same investment case but at much cheaper prices
The Vista twist: shares hammered despite positive news
https://businessdesk.co.nz/article/markets/the-vista-twist-shares-hammered-despite-positive-news
After there recent upgrade the share price has gone down. Has been insider buying and Fishers and another fund big player increasing stakes.
Let's see with the latest investor presentation
https://www.nzx.com/announcements/401117
Vista
Targeting growing annual recurring revenue (ARR) of more than $300 million long-term through its new software.
And while Vista's share price continues to languish, it told its investor day that the movie industry continues to rebound, with strengthening numbers of moviegoers and new box-office records.
Vista shares closed Tuesday at $1.59, down from $2 in August and $2.70 in November last year.
Vista claims 51% market share of the estimated global market of cinemas with 20-plus screens, excluding China.
Vista Cinema had been installed at 8,215 sites at June 30 and is aiming to eventually transition more than 6,000 to the new platform.
In August, when it reported an $18m first-half net loss, Vista said annual revenue for calendar 2022 would be between $123m and $128m, up from its previous guidance of $118m to $123m.
But the latest industry experience shows cinemas are making a comeback as customers feel safe to return.
It also noted that cinema-going tends to be resistant to economic downturns. The US box office grew in three of the past four recessions.
Link to AGM
https://www.nzx.com/announcements/401284
Craigs have a target price of $2.17
Jardens $2.10
Nice upgrade.....
https://www.nzx.com/announcements/404816
"Vista Group also updates its revenue guidance for FY2022 to between $131 million - $135 million (up from $123 million - 128 million) "
Quote from: Left Field on Dec 30, 2022, 09:57 AMNice upgrade.....
https://www.nzx.com/announcements/404816
"Vista Group also updates its revenue guidance for FY2022 to between $131 million - $135 million (up from $123 million - 128 million) "
Yup when I read, "Under the trade agreement Cineworld Group has agreed to pay certain pre-chapter 11 amounts" my initial thought was; 'certain' = bugger all. Then the following revenue guidance showed my cynicism to be misplaced... 'recent improvements in the collection of aged receivables, and, in connection with the trade agreement, the release of provisions in respect of amounts owed by Cineworld.' All very good then. Share price still languishing towards the bottom of its two year range but a nice nudge this morning.
Not much happening on vistas page. I've just brought in at $1.45. It may have been losing money but I can see a bounce around the corner. I think full year results will surprise.
Can't be too many on here with money invested in this one or I might see more comments. Results 1st march not long to go now
Punters should love this result
I love the accelerating cash burn ....spending more to eventually make heaps more
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/VGL/407546/389723.pdf
Disc: never held as I have no idea how they make money and if you don't understand how a company works don't invest no matter how fast ARR is increasing
Quote from: winner (n) on Mar 01, 2023, 08:49 AMPunters should love this result......I love the accelerating cash burn .....
Disc: never held as I have no idea how they make money and if you don't understand how a company works don't invest no matter how fast ARR is increasing
Whatever they do Winner they must be doing it well...... over 51% market share..... if true that's pretty impressive. One day they might even make a profit! (Disc - don't hold but watching with interest!)
Operational Highlights
• Cineplex (top 5 North American circuit) signed to Vista Cloud and is expected to go live on Vista Digital in 2023
• Movio Cinema EQ launched, offering a smarter, faster and more streamlined solution for cinemas to improve the way they market movies to their moviegoers
• Maintained 51% market share4 of the estimated global enterprise market (20+ screens), excluding China
Another company that seems to have something good but don't charge enough for it ....hard to recover from that as putting prices up to realistic levels might turn customers away
Seem to spend more than a buck to get another buck of sales
Looks promising......I guess it is an upgrade.....
https://www.nzx.com/announcements/414324
Through the organisational changes and the updated capital expenditure program, Vista Group now expects to be free cashflow positive during the fourth quarter of 2024, twelve months earlier than previous guidance. Vista Group remains on target to achieve its aspirations of ARR between $175m-$205m and EBITDA of 15+%, in each case by the end of 2025.
Quote from: Left Field on Jul 06, 2023, 08:37 AMLooks promising......I guess it is an upgrade.....
https://www.nzx.com/announcements/414324
Through the organisational changes and the updated capital expenditure program, Vista Group now expects to be free cashflow positive during the fourth quarter of 2024, twelve months earlier than previous guidance. Vista Group remains on target to achieve its aspirations of ARR between $175m-$205m and EBITDA of 15+%, in each case by the end of 2025.
As yet no real impact on the SP from the screen writers and actors strikes, but all those delayed or cancelled movies might have an effect on the box office at some stage?
• VGL – AMC, the world's largest cinema chain, yesterday released strong 2Q23 results. An array of blockbuster films drove a 16% YoY increase in revenues, and management noted that momentum had continued into July-23, which was the highest revenue month in their 103-year history. This growth finally enabled coverage of AMC's substantial fixed cost base, generating the first EPS positive quarter since 2Q19. Despite this, AMC continued to close non-performing locations, shuttering a net 14 sites or 2% of all US locations (but down from closing a net 20 sites in 1Q23), with 10% of pre-pandemic sites now closed. Although not a Vista customer, AMC is a good bellwether for Vista's enterprise customer base (which makes up the majority of its revenue) – with improving box office and profitability, site closures should continue to slow in the coming quarters.
Quote from: Shareguy on Aug 10, 2023, 02:50 PM• VGL – AMC, the world's largest cinema chain, yesterday released strong 2Q23 results. An array of blockbuster films drove a 16% YoY increase in revenues, and management noted that momentum had continued into July-23, which was the highest revenue month in their 103-year history. This growth finally enabled coverage of AMC's substantial fixed cost base, generating the first EPS positive quarter since 2Q19. Despite this, AMC continued to close non-performing locations, shuttering a net 14 sites or 2% of all US locations (but down from closing a net 20 sites in 1Q23), with 10% of pre-pandemic sites now closed. Although not a Vista customer, AMC is a good bellwether for Vista's enterprise customer base (which makes up the majority of its revenue) – with improving box office and profitability, site closures should continue to slow in the coming quarters.
No one seems to be mentioning the current strike that has halted film making?
Heading towards turning cashflow positive in Q4 with a bullish outlook, though no mention is made of looming effects of Hollywood actors/writers strike.
https://www.nzx.com/announcements/417028
Financial overview
• Total revenue of $69.7m (up 12% on 1H22) and Recurring Revenue1 of $60.5m (up 13% on 1H22)
• Combined Cinema and Movio Recurring Revenue1 of $49.8m, up 10% on 1H22
• Substantial growth in the AGC segment2 with total revenue up 29%
• EBITDA3 of $2.5m (down 19% on 1H22) and positive operating cashflow of $6.2m (up 22% on 1H22)
• Loss for the period of $8.5m (down from a loss of $18.0m for 1H22)
• Average monthly Cash Usage4 of $1.2m in 1H23 now expected to become free cashflow positive during Q4 2024 – a year earlier than previous guidance.
Outlook
• Vista Group reaffirms guidance for 2023 total revenue to be in the range of $142m – $147m
• Through the organisational transformation and the reprofiled capital expenditure program, Vista Group expects to be free cashflow positive during the fourth quarter of 2024
• Vista Group remains on target to achieve its 2023 ASM aspirations of ARR5 between $175m – $205m and EBITDA3 of 15+% by the end of 2025.
Upgrade for existing customer to vista cloud.....tho no revenue/profit upgrade....yet?
https://www.nzx.com/announcements/423495
Vista Group International Limited (NZX & ASX:VGL) is delighted to announce that Major Cineplex, one of the largest cinema exhibitors in Southeast Asia, has become the latest existing Vista Group client to commit to Vista Cloud.
The three-year agreement will see Vista Cloud deployed across all of Major Cineplex 182 sites throughout Thailand, Cambodia and Laos. The project is expected to be completed by the end of 2024.
In addition to a number of clients already live and announced as onboarding, Major Cineplex joins recently announced Pathé Cinemas in adopting Vista Group's entire Vista Cloud enterprise offering, including all of its advanced capabilities. A client for over 14 years, the agreement replaces the existing on-premises agreements with Major Cineplex across all sites.
Another 'win' claimed by VGL......
https://www.nzx.com/announcements/423659
"Vista Group's digital solutions are designed to help our clients provide best-in-class digital experiences to moviegoers – seamless, innovative, and consistent across all sales channels – even under peak traffic." said Vista Group CEO, Stuart Dickinson. "Cinépolis is an innovator and a strong partner for Vista Group, and we look forward to taking this first step on Cinépolis' cloud journey with its Spanish circuit Cine Yelmo. We look forward to assisting Cine Yelmo to increase its digital engagement with its moviegoers in Spain."
This (https://www.nzx.com/announcements/423659) sounds (https://www.youtube.com/watch?v=Q3L58KyHC_M) exciting. Will it improve revenue?
Leftie ...global domination hey
One day will be reflected in share price
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/VGL/431751/419439.pdf
Looks like Vista is in play. Can anyone share the gist of the following articles?
https://www.afr.com/street-talk/potentia-capital-puts-its-bankers-to-work-at-newbook-20240410-p5fitg
https://www.afr.com/street-talk/eqt-backed-storable-to-buy-potentia-capital-business-20240501-p5fo4a
Looks like they raised $635m 2 years back, but not clear on how much they spent so far. Does seem like quite a chunky acquisition for such a small fund. Any thoughts?
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/VGL/431810/419507.pdf
Purchased another 1.5% ??? Being that aggressive does seem unusual just for a board seat, surely if that was all they wanted they could have just slowly brought in over time with a few smaller block trades and no escalation clauses.
I think the phrase was "a full takeover not on the cards", and companies can be edgy around language here so could easily be a SIA or a co-bid with another PE fund / pension fund etc. Going by AUM this would look a little large to be doing by themselves.
Quote from: Gerald on May 27, 2024, 06:22 PMhttp://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/VGL/431810/419507.pdf
Purchased another 1.5% ??? Being that aggressive does seem unusual just for a board seat, surely if that was all they wanted they could have just slowly brought in over time with a few smaller block trades and no escalation clauses.
I think the phrase was "a full takeover not on the cards", and companies can be edgy around language here so could easily be a SIA or a co-bid with another PE fund / pension fund etc. Going by AUM this would look a little large to be doing by themselves.
Probably what they mean is a full takeover not on the cards by us
However if anyone wants a crack here is 19.9% at the right price.....
Good update, inching towards profitability..... slight downgrade in FY24 revenue expectations..... but it's all about the positive vibe!
HALFYR: VGL: EBITDA increases 188%, with FCF positive in sight
Vista Group International Limited (NZX & ASX: VGL) reported its half year
results for the six months ending 30 June 2024 today, demonstrating benefits
of its 2023 business transformation - delivering a significant operating
improvement over 1H23, growing momentum of cloud client transitions, and
reaffirmed it will be free cash flow positive for the fourth quarter of 2024.
Financial overview
o EBITDA1 of $7.2m (up $4.7m on 1H23)
o ARR2 of $129.4m (up 9% on 30 June 2023)
o Total revenue of $69.6m (in line with 1H23), with Recurring Revenue3 of
$63.4m (up 5% on 1H23) and SaaS Revenue3 of $25.4m (up 20% on 1H23)
o Operating cashflow of $3.0m, or $6.1m after adjusting for movements in
working capital4 (up $8.5m on 1H23 on a like for like basis)
o Loss for the period of $2.7m (a 68% improvement on 1H23).
Outlook
o 2024 total revenue guidance of $148m-$153m (was $152-$157m), Recurring
Revenue3 of $133m-$137m and Non-Recurring Revenue3 of $15m-$16m (was ~$18m)
o On track to be Free Cash Flow5 positive in 4Q24
o 2024 EBITDA1 margin of 13-14% (stronger than expected)
o 2025 EBITDA1 margin upgraded to 16-18% (was 15%+)
o On target to achieve December 2025 ARR2 of $175m+.
Operational overview
o 247 sites were live on Vista Cloud solutions on 5 August 2024, including
Major Cineplex (79 sites), Everyman (44 sites), Pathe (29 sites), NCG (27
sites), and Megaplex (15 sites)
o New client Cine Colombia (48 sites) has signed to move its cinema circuit
to Vista Cloud's Moviegoer Engagement solution
o The new business structure is now fully operational, with a $4.8m reduction
in total cost to serve and operating expenses6 from 1H23.
https://www.nzx.com/announcements/435644
Potentia getting rid of their stake according to AFR
Potential were adamant that Vista was underperforming and implied the Board and Management were pretty useless or 'not up to it' to put in more politely.
I gather they were concerned last year that the transition to the cloud was taking too long and expressed concern that the return to profitable growth wasn't on the horizon.
No doubt Potentia have kept tracking how things are going and don't see a good picture. The last update from Vista wasn't that good was it. No wonder Potentia have decided to give up ...just take the money and run and move onto something more rewarding.
I see this move as not very good news.