Press Release
Paris (France) - 7 September 2018 at 08:00
Ymagis Group
Reports First Half-Year 2018 Earnings
Continued
transformation and deployment of new activities
Cost reduction programme at an annual rate of over
€5.0M
Ymagis Group (FR0011471291,
MAGIS, PEA-PME, TECH 40), the European specialist in
technologies for the film industry, today reported its first
half-year earnings for 2018, ending 30 June 2018, audited and
approved by its Board of Directors following its meeting on 6
September 2018.
€m |
|
|
|
HY 2018 |
HY 2017 |
Var. (%) |
Revenues |
|
|
|
79,3 |
82,4 |
(3,7)% |
EBITDA |
|
|
|
15,8 |
20,0 |
(21,3)% |
|
Amortization |
|
|
(14,2) |
(17,6) |
19,3% |
Recurring Operating Income (ROI) |
|
|
1,6 |
2,4 |
(35,4)% |
|
Non
recurring expenses |
|
|
- |
- |
- |
EBIT |
|
|
|
1,6 |
2,4 |
(35,4)% |
|
Net
financial expenses |
|
|
(2,9) |
(2,3) |
(22,7)% |
EBT |
|
|
|
(1,3) |
0,1 |
n.a. |
Share in net income of minority interests |
|
|
0,3 |
0,0 |
n.a. |
|
Income
tax |
|
|
(1,0) |
(2,2) |
53,2% |
Net
Income, Group share (NI) |
|
|
|
(2,0) |
(2,1) |
2,2% |
|
|
|
|
|
|
|
EBITDA as a % of revenues |
|
|
19,9% |
24,3% |
|
ROI as a % of revenues |
|
|
2,0% |
3,0% |
|
NI as a % of revenues |
|
|
(2,6)% |
(2,5)% |
|
|
|
|
|
|
|
|
Scheduled reduction in VPF
revenue and sustained growth in its other activities
Standing at €79.3M, revenue for the first half of
2018 was down 3.7% as compared to the same period in 2017 due to
the particularly seasonal nature of CinemaNext's and Eclair's
activities. Over a rolling 12-month period with the seasonal impact
offset, revenue remained stable at €176.6M from the start of July
2017 to the end of June 2018 as compared to the same period the
previous year. The organic growth of CinemaNext and Eclair
activities therefore offsets the decline in VPF activity in line
with the PERFORM plan.
As yet, the Group's new activities (EclairColor,
EclairGame and virtual reality) only generate limited revenue
amounting to €0.2M during the first half of 2018. This should show
a significant improvement during the second half of the year thanks
to the development of EclairGame (eSports in cinemas) and the
opening of the Group's first virtual reality centres in the last
quarter of 2018. These new activities should contribute significant
revenue and earnings as of 2019.
Operating earnings impacted by
the launch of new activities and the Eclair transformation
programme picks up speed
Operating earnings (EBIT) for the first half of
2018 reached €1.6M, down €0.9M compared to the previous year. This
is notably down to a negative contribution of €0.6M from the new
activities (EclairColor, EclairGame and virtual reality), which
remain cost centres until the second half of 2018. Eclair's
contribution fell by €1.4M, largely due to the costs linked to the
digital transformation of it business segments.
Details of the contribution of each business unit
to the Group's performance are shown below:
|
|
Virtual Print Fee |
|
CinemaNext |
|
|
|
€m |
|
|
HY 2018 |
HY 2017 |
Chg. (%) |
|
|
|
HY 2018 |
HY 2017 |
Chg. (%) |
|
Revenues |
|
|
26,7 |
31,3 |
(14,6)% |
|
|
|
25,4 |
24,6 |
3,2% |
|
EBITDA |
|
|
20,3 |
21,5 |
(5,6)% |
|
|
|
(1,4) |
(0,3) |
(345,1)% |
|
EBIT |
|
|
9,1 |
7,2 |
25,6% |
|
|
|
(1,5) |
(0,8) |
(86,0)% |
|
EBT |
|
|
7,4 |
5,7 |
28,7% |
|
|
|
(1,9) |
(1,3) |
(44,2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA as a % of revenues |
|
|
76,0% |
68,7% |
|
|
|
|
(5,5)% |
(1,3)% |
|
|
ROI
as a % of revenues |
|
|
34,0% |
23,1% |
|
|
|
|
(5,7)% |
(3,2)% |
|
|
NI as
a % of revenues |
|
|
27,6% |
18,3% |
|
|
|
|
(7,3)% |
(5,2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eclair |
|
Other activities |
|
|
|
€m |
|
|
HY 2018 |
HY 2017 |
Chg. (%) |
|
|
|
HY 2018 |
HY 2017 |
Chg. (%) |
|
Revenues |
|
|
27,0 |
26,5 |
2,1% |
|
|
|
0,2 |
- |
- |
|
EBITDA |
|
|
(2,7) |
(1,1) |
(144,9)% |
|
|
|
(0,4) |
- |
- |
|
EBIT |
|
|
(5,4) |
(4,0) |
(34,9)% |
|
|
|
(0,6) |
- |
- |
|
EBT |
|
|
(6,2) |
(4,3) |
(42,1)% |
|
|
|
(0,6) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA as a % of revenues |
|
|
(10,2)% |
(4,2)% |
|
|
|
|
n.a. |
n.a. |
|
|
ROI
as a % of revenues |
|
|
(19,9)% |
(15,1)% |
|
|
|
|
n.a. |
n.a. |
|
|
NI as
a % of revenues |
|
|
(22,8)% |
(16,3)% |
|
|
|
|
n.a. |
n.a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The recurring operating earnings for VPF increased by over €1.8M. With the finance leases
taken out to provide digital equipment gradually coming to an end,
the operating margin of this activity is expected to continue to
improve.
The CinemaNext BU
contribution fell by approximately €0.7M due to the invoicing of
several large equipment projects for multiplexes being pushed back
to the second half of the year.
The contribution made by Eclair was down €1.4M under the triple effect of
shrinking postproduction activity in France, a price drop affecting
video and film content distribution activities despite an increased
volume, and lastly, the setting up of a dedicated team to speed up
the digital transformation of Eclair's business segments.
Net financial expenses stood at €2.9M, an increase
of 23% as compared to the previous year. The payment of interest
linked to the long-term financial debt (in particular Osea and
EuroPP) account for the majority of this sum.
After taking into account tax expenses of €1.0M
(as compared to €2.2M during the first half of 2017), the Group's
attributable net income stood at (€2.6)M versus (€2.1M) a year
earlier.
Ongoing debt reduction programme
for the Group
€m |
|
|
HY 2018 |
2017 |
|
|
|
|
|
HY 2018 |
2017 |
Fixed
assets |
|
|
62,4 |
70,3 |
|
|
Equity |
|
|
28,0 |
31,5 |
Other
non current assets |
|
|
5,9 |
6,2 |
|
|
Financial debts |
|
|
28,4 |
55,6 |
|
|
|
|
|
|
|
|
|
|
|
|
Non current assets |
|
|
68,2 |
76,5 |
|
|
Other
non current liabilities |
|
|
8,6 |
10,1 |
Inventories |
|
|
9,3 |
7,9 |
|
|
Non current liabilities |
|
|
65,1 |
97,3 |
Receivables |
|
|
59,5 |
61,3 |
|
|
|
|
|
|
|
Other
current assets |
|
|
17,6 |
18,3 |
|
|
Financial debts |
|
|
43,8 |
23,4 |
Cash |
|
|
9,2 |
15,7 |
|
|
Other
current liabilities |
|
|
55,0 |
59,2 |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
95,6 |
103,3 |
|
|
Current liabilities |
|
|
98,8 |
82,5 |
ASSETS |
|
|
163,9 |
179,8 |
|
|
LIABILITIES |
|
|
163,9 |
179,8 |
On 30 June 2018, Group equity stood at €28M, down
11% in relation to 31 December 2017. The net financial debt
amounted to €63.0M on 30 June 2018 as compared to €63.2M six months
earlier (and €70.9M on 30th June 2017), the cash flow having been
devoted to substantial investments.
Borrowings maturing in less than one year
increased due to the upcoming scheduled repayment in February 2019
of the first tranche of the EuroPP loan, which Ymagis is preparing
to cover. A programme has also been launched to bring customer
payment deadlines back to a standard 60 days which should have a
positive impact on the Group's cash flow in the very short
term.
Outlooks: cost savings programme,
continued digital transformation of Eclair - imminent launch of new
virtual reality activities
Ymagis has decided to launch a cost savings plan
in September 2018 which will reduce the Group's fixed expenses by
at least €5.0M over a full year as from 2019. This programme will
be accompanied by cost-cutting actions both in the parent company
and the two technological services BUs. It is expected to help to
speed up a return to profitability for the two BUs and ensure the
targets of the PERFORM plan are met.
Ymagis Group is also continuing its development
strategy focusing on internationalisation and innovation. The Group
has strengthened its position in its key markets worldwide and
opened new territories in its two main centres of activity. The
innovations launched in 2017 - the new EclairColor HDR standard as
well as the EclairPlay, EclairTrack and EclairSend platforms and
digital solutions - have been well-received by the market and are
enjoying rapid development.
Moreover, the Group has inaugurated its new sites
in Liège, Paris and Dusseldorf. This strategic reorganization has
allowed for the consolidation of teams to reduce costs (in
particular, rental expenses), increase synergies and set up a new,
optimized supply chain. The positive effects of these actions
should be seen in CinemaNext's earnings during the second half of
2018.
As planned, Ymagis will be launching both its
owned & operated virtual reality centres and in partnership
with cinema exhibitors during the last quarter. Ymagis has
identified the VR LBE (Location Based Entertainment) market as a
high-potential segment able to generate high margins. Ymagis
considers that this new activity may constitute a major driver of
profitable growth for the Group at a moderate financial risk. The
Group has already planned to deploy several sites as of late 2018
and wishes to step up its deployment with a minimum of one site
opening each month beginning in January 2019. Moreover, Ymagis is
preparing to provide "arcade" type virtual reality solutions which
can be operated in cinemas. This offer will be brought to market at
the end of September 2018.
The business model for this new activity is now
developed by a dedicated subsidiary, Ymagis Entertainment, and will
be presented to investors in October on the site of the first VR
centre, due to open in Paris that month.
The Group remains confident in its ability to
achieve its 2018 annual target to see the reduction in its VPF
revenue compensated by the organic growth of its technological
activities. It reiterates the profitability targets included in its
PERFORM plan for 2020, with the new activities providing the
potential to exceed them.
Availability of
the Half-Year 2018 Financial Earnings Report
Ymagis Group's Half-Year 2018
financial report has been filed today with the AMF and is available
on the Group's website through its Investor Relations section under
"Publications".
Next press
release on 9th November 2018: Revenue for Q3 2018
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 25 countries with 770
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 Group Reports First
Half-Year 2018 Earnings
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
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information contained therein.
Source: YMAGIS via Globenewswire