Latest news with #VistaGroup
RNZ News
5 days ago
- Business
- RNZ News
Cinema software firm Vista Group trims interim losses
Photo: 123rf Cinema software company Vista Group has trimmed its interim losses as revenue and margins increased, while it's focusing on scaling its cloud-based platform. Key numbers for the six months ended June compared with a year ago: The company said the results reflect Vista Group's strategic focus on scaling Vista Cloud, which is designed to modernise and streamline cinema operations. New Vista Cloud clients include Odeon Cinemas Group and Village Cinemas Australia. "Demand for Vista Cloud continues to grow, reflecting strong market appetite for our cloud solutions, with demand now exceeding our delivery capacity," chief executive Stuart Dickinson said. The company said it was adding capacity to its technology and delivery teams to onboard new clients and meet the present demand. Total revenue increased 11 percent, while its loss after-tax loss improved 56 percent to $1.2 million. Vista maintained its full-year revenue guidance of $167m and operating margins of between 16 and 18 percent. The company expects annual recurring revenue to hit $175m in 2026. Dickinson said he was confident in the company's future. He said the company aimed to eventually grow recurring revenue to $315m per year.
NZ Herald
5 days ago
- Business
- NZ Herald
Vista Group revenue up 11% despite first-half loss
Vista Group chief executive Stuart Dickinson said demand for its Vista Cloud solution continued to grow, reflecting strong market appetite for its cloud solutions. 'With demand now exceeding our delivery capacity, we're responding decisively to prioritise our clients by scaling the capacity of our technology and delivery teams, who are already operating at peak efficiency,' Dickinson said. 'This will accelerate client onboarding and unlock the full potential of our pipeline.' Vista Group CEO Stuart Dickinson said the business' growth has reinforced its strategic confidence. Phtoto / Supplied Dickinson said the business had shipped over 42 new features to its clients so far in 2025, with an embedded payment system launching with select clients in the second half of this year. The business has also brought on two new clients, including Odeon Cinemas Group, which has 309 locations, and Village Cinemas Australia, which has 20 locations. There are also 747 locations live on the business' Vista Cloud Platform, with the second half expected to see the number rise to 1600 locations. Dickinson said the business was focused on delivering long-term value to clients and shareholders. 'The traction we're seeing across Vista Cloud and our growth adjacencies reinforces our confidence in the strategy and the opportunity ahead.' Looking ahead, Vista Group is on track to achieve its full-year revenue guidance of $167m and ebitda margin of between 16%-18%. The business has made good progress on its goal of over 1600 locations on its Vista Cloud platform by the end of the year, however, a significant proportion of locations from one key client could be delayed until 2026. The business has upgraded its aspirations for 6000 locations using Vista Cloud, lifting its expected annual recurring revenue to $315m and its ebitda margin to between 33%-37%. The film industry has been bolstered by several high-profile movies in the first half of the year, including Lilo & Stitch and Mission: Impossible - The Final Reckoning. The second half of the year is also set to perform strongly, with tentpole titles including the already released Superman, Jurassic World: Rebirth and F1: The Movie. Analysts react Jarden analysts Guy Hooper and Nick Yeo said it was a mixed result tracking towards the bottom end of prior full-year guidance. 'Momentum in signings and new product roll-out remains positive and supports growth, with the company pointing to internal capacity constraints as a key driver for slower go lives as it increases investment in tooling and accelerating scalability,' Hooper and Yeo said. Hooper and Yeo said that domestic box office performance has been robust and is up by 15% year-on-year, however, the strength has lagged behind earlier forecasts. Vista shares were up 1c to $3.32 in early morning trading. Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
Yahoo
25-05-2025
- Business
- Yahoo
Calculating The Intrinsic Value Of Vista Group International Limited (NZSE:VGL)
The projected fair value for Vista Group International is NZ$3.50 based on 2 Stage Free Cash Flow to Equity Vista Group International's NZ$3.50 share price indicates it is trading at similar levels as its fair value estimate Our fair value estimate is 14% lower than Vista Group International's analyst price target of NZ$4.07 How far off is Vista Group International Limited (NZSE:VGL) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (NZ$, Millions) NZ$2.17m NZ$11.9m NZ$22.5m NZ$31.7m NZ$38.9m NZ$45.5m NZ$51.3m NZ$56.5m NZ$61.0m NZ$65.0m Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x3 Analyst x1 Est @ 22.73% Est @ 16.92% Est @ 12.85% Est @ 10.00% Est @ 8.01% Est @ 6.62% Present Value (NZ$, Millions) Discounted @ 8.3% NZ$2.0 NZ$10.1 NZ$17.7 NZ$23.0 NZ$26.1 NZ$28.2 NZ$29.4 NZ$29.8 NZ$29.7 NZ$29.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = NZ$225m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.4%. We discount the terminal cash flows to today's value at a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = NZ$65m× (1 + 3.4%) ÷ (8.3%– 3.4%) = NZ$1.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= NZ$1.4b÷ ( 1 + 8.3%)10= NZ$611m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is NZ$837m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of NZ$3.5, the company appears about fair value at a 0.09% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Vista Group International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 1.143. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Vista Group International Strength Debt is well covered by cash flow. Weakness Interest payments on debt are not well covered. Opportunity Expected to breakeven next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Threat No apparent threats visible for VGL. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Vista Group International, we've put together three essential aspects you should further examine: Risks: We feel that you should assess the 2 warning signs for Vista Group International we've flagged before making an investment in the company. Future Earnings: How does VGL's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every New Zealander stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
