YMAGIS : Ymagis Group Reports Half-Year 2018 Revenue
30 Juillet 2018 - 5:45PM
Press Release
Paris (France) -30 July 2018 - 05:45 pm
Ymagis Group
Reports Half-Year 2018 Revenue
Revenue down 3.6%
at €79.3M
2018 annual target
to offset declining VPF revenue with growth generated by CinemaNext
and Eclair maintained and supported by rolling 12-month
performance
Ymagis Group
(FR0011471291, MAGIS, PEA-PME, TECH 40), the European
specialist in digital technologies for the cinema industry, today
reported its consolidated financial results for the first sixth
months of 2018, ending 30 June 2018.
Scheduled decline
of VPF revenue partially absorbed by growth in the Group's other
Business Units
Ymagis Group reported €79.3M in
revenue during the first half of 2018, a 3.6% decrease compared to
the prior year period. The Group's non-VPF activities are
especially seasonal with strong sales traditionally in the second
half of 2018, peaking in Q4.
On a rolling 12-month period,
Ymagis Group met its objective of offsetting the scheduled decline
in VPF revenue with revenue growth in its CinemaNext and Eclair
business units. The Group's revenue between 1 July 2017 and 30 June
2018 remains stable at €176.6M compared to the prior year
period.
In millions of Euros |
6M 2018 |
6M 2017 |
Var. (%) |
|
Rolling 12 Months |
Prior Rolling 12 Months
|
Var. (%) |
Virtual Print Fee |
26.7 |
31.2 |
(14.5) % |
|
57.0 |
66.4 |
(14.2) % |
Equipment
Sales |
18.6 |
17.9 |
|
|
50.7 |
45.0 |
|
Online
& Support |
6.7 |
6.3 |
|
|
13.2 |
12.3 |
|
Consulting |
0.1 |
0.4 |
|
|
0.2 |
0.8 |
|
CinemaNext |
25.4 |
24.6 |
3.4 % |
|
64.1 |
58.1 |
10.4 % |
Distribution Services & Preservation |
12.4 |
12.0 |
|
|
25.3 |
24.5 |
|
Postproduction & Restoration |
4.4 |
5.4 |
|
|
10.0 |
11.9 |
|
Localization |
10.2 |
9.1 |
|
|
20.0 |
16.0 |
|
Eclair |
27.0 |
26.5 |
2.0 % |
|
55.3 |
52.4 |
5.6 % |
Other |
0.2 |
0.0 |
- |
|
0.2 |
0.0 |
- |
TOTAL REVENUE |
79.3 |
82.3 |
(3.6) % |
|
176.6 |
176.9 |
(0.2) % |
VPF as % of revenue |
33.6% |
37.9% |
|
|
32.3% |
37.5% |
|
CinemaNext as % of revenue |
32.1% |
29.9% |
|
|
36.3% |
32.8% |
|
Eclair as % of revenue |
34.1% |
33.4% |
|
|
31.3% |
29.6% |
|
Other activities as % of revenue |
0.3% |
- |
|
|
0.1% |
- |
|
With its natural decline quarter
over quarter, VPF revenue fell by 14.5% in the
first six months of 2018 at €26.7M compared to €31.2M for the prior
year period. The number of screens under VPF contract remains
stable following the recoupment in Germany at the end of 2017.
Buoyed by its Equipment sales
division, CinemaNext recorded a slight growth
during the first half of 2018, with revenue up 3.4% at €25.4M.
Discussions regarding the replacement of existing equipment
installed over the past decade are underway with numerous large
exhibitors but the final decision process is expected to take
several months. In this context, CinemaNext has demonstrated its
ability to sustain organic growth with services and sales related
to new cinema projects. Following the successful inauguration of
its Sphera premium format cinema in Athens (Greece), a first French
installation is currently underway in Paris.
Eclair showed
continued organic growth with revenue up +2.0% at €27.0M, driven by
activities the Business Unit has focused on further developing:
content delivery and localization. Among other actions in the first
six months of 2018, Eclair signed a 3-year agreement with the
German independent distributors association, AG Verleih, for the
electronic theatrical delivery of feature films and promotional
assets.
Ymagis Group's new activities (EclairColor, EclairGame and Virtual
Reality) recorded symbolic revenue of €0.2M in the first six
months of 2018. That is expected to change significantly in the
second half of the year with the rapid development of EclairGame
(eSports activities in cinemas) and the opening of the Group's
first Virtual Reality centres during the fourth quarter.
Outlook
During the first half of 2018,
Ymagis Group strengthened its position in key markets, particularly
with regard to its cinema equipment and content management
activities.
Having been enthusiastically
received by exhibitors, EclairColor HDR technology is now available
from certified third-party labs, which are currently producing at
least one film per week in EclairColor. Ymagis has also signed an
agreement with Samsung Electronics for the integration of the
EclairColor HDR technology in its Onyx Cinema LED screens, with the
first theatre installation recently completed by CinemaNext in
Austria. Finally, EclairColor began its deployment in China this
July as the cornerstone of a new Premium Format cinema concept,
with the potential for substantial development and adoption by
additional Chinese exhibitors.
As for the deployment of its new
digital content management platforms, Eclair continues its
international development of EclairPlay, including the signing of
an agreement with the American Cinema Buying Group. Per the terms
of the agreement, the CBG helps Eclair connect the association's
500 member exhibition companies, providing them with expanded
programming options via its broadband content delivery
platform.
As announced in the quarterly
earnings, Ymagis has been working for several months on the launch
of a new Virtual Reality concept to be commercialized both
independently and in association with its exhibitor partners. With
the rapid growth of new forms of entertainment-based leisure
activities, Ymagis has identified LBE (Location Based
Entertainment) as a strong growth vector capable of generating
substantial profit margins for the Group. The business model for
this new concept will be presented to investors in the second half
of the year.
Finally, Ymagis Group recently
inaugurated its new sites in Liège, Paris and Düsseldorf. This
strategic reorganization has allowed for the consolidation of teams
to reduce costs, increase synergies and set up a new, optimized
supply chain.
Bolstered by these developments
and supported by its performance during the rolling 12-month
period, the Group maintains its annual plan for 2018 to offset the
decline in VPF revenue with the organic growth of its other revenue
streams and reiterates its profitability targets for 2020
established in its Perform plan.
Next release: 7
September 2018 - Half-year 2018 Revenue
ABOUT Ymagis GROUP
Ymagis is a European leader in advanced digital technology services
for the cinema industry. Founded in 2007, the Group is
headquartered in Paris and has offices in 26 countries with 768
employees. Our core business is structured around three main units:
CinemaNext (exhibitor services: sales and field services, software
solutions, customer service/NOC and consulting), Eclair (content
services: postproduction, theatrical delivery, digital
distribution, versioning and accessibility, restoration and
preservation) and Virtual Print Fee (VPF) for finance solutions.
For more information, please visit www.ymagis.com,
www.cinemanext.com or www.eclair.digital
YMAGIS is listed on Euronext Paris and is part of the CAC Small,
CAC Mid and Small and CAC All-Tradable indices. |
YMAGIS GROUP
Jean Firôme, CFO
Tel.: +33 (0)1 75 44 88 88
investors@ymagis.com
CALYPTUS
Sophie Levesque / Mathieu Calleux
ymagis@calyptus.net
Tel.: + 33 (0)1 53 65 68 62 |
YMAGIS - HYR2018 revenue -
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Source: YMAGIS via Globenewswire