Turnover on September 30, 2013: 30.1 M€, +8.6%
YMAGIS (ISIN: FR0011471291, mnemonic: MAGIS), the specialist in digital technologies for the cinema industry, today published its consolidated activity as of September 30, 2013.
Over the first nine months of the year, revenues amounted to 30.1 m€, an increase of +8.6% versus the same period in 2012. The third quarter is stable at 10.0 m€.
ANALYSIS PER SEGMENT
A third quarter integrating an unfavorable comparison base in the Benelux
All of the Group’s activities grew during the 3rd quarter, with the exception of sales and equipment installations, which were penalized by an unfavorable comparison base related to the entry of a large contract in the Benelux accounts during the 3rd quarter of 2012, valued at 1.5 m€, skewing the comparative reading of 3 rd quarter business between 2012 and 2013.
Acceleration of growth in the VPF segment
After a first half-year showing a +25.3% increase, the VPF (1) business (70.2% of the consolidated revenues) maintained its momentum in the third quarter and improved by +35.8%, a performance that is all the more noticeable as it is characterized by two-digit growth rates (three-digit in Spain) over the whole YMAGIS implantation area.
This progress mainly reflects the growth of cinema theaters under a VPF contract with YMAGIS over the period, for which the evolution is the following:
The Services business (29.8% of consolidated revenues) decreased by -37.4% in the 3rd quarter, penalized by a drop in revenue in Sales and Equipment Installation in Benelux, related to an unfavorable comparison base All the other activities in the Services segment, with a higher added value, appear to have grown in the 3rd quarter.
Laboratory revenues showed a growth of +3.7% at 0.9 m€, lower than in previous quarters due to fewer “blockbusters” releases over the period, generating a lower number of copies to be delivered by YMAGIS for the period.
Revenues related to Digital Cinema Online Support and Maintenance increased by +24.8% to reach 0.8 m€, benefiting from the growth of cinema theaters deployed by YMAGIS and the services provided to exhibitors who had acquired YMAGIS projection equipment.
A SOUND FINANCIAL SITUATION
On September 30, YMAGIS continued to show a sound financial structure, including the 11.6 m€ in capital raised in the 1st half-year on the occasion of its Initial Public Offering on the regulated market of NYSE Euronext Paris, compartment C.
PROSPECTS FOR THE END OF YEAR 2013
Approval of the operation with SmartJog by the Board of Directors
The operation planned with SmartJog, creating a joint venture owned mainly by YMAGIS, providing an integrated offer for the physical and digital delivery of digital contents to cinema professionals, was approved by YMAGIS’s Board of Directors which was held today.
The effective and legal contribution achievement, which will constitute the final step in the creation of the company, should occur before year’s end.
Then YMAGIS will focus its efforts on the negotiation of agreements with distributors on the basis of this new offer and will accelerate its deployment in France and in the rest of Europe.
This newly constituted entity will establish the first integrated European player in digital content logistics for the cinema industry.
Further development in Germany and Spain
Since October, YMAGIS has opened a new digital laboratory in Berlin in order to offer advanced technical services to local producers and distributors, as well as to American studios’ subsidiaries that are present in Germany.
This new step is occurring at a time when the company has finalized its VPF contracts with almost all the German distributors, which should make it possible to sustain continuous business relations with these distributors in future.
Furthermore, YMAGIS will endeavor to complete the deployment of contracts that were signed in Spain over recent months. Other contracts are currently being negotiated.
Actively looking for external growth
YMAGIS intends to find new acquisition opportunities in order to further extend its offer of products and services to the distributors and the exhibitors, but also to extend its geographical coverage to new areas.
Thus with these various growth axes, YMAGIS is on track to achieve its ambition of quickly becoming the leader in digital services and technologies for the cinema industry.
(1) VPF: Virtual Print Fee – fee paid to YMAGIS by the supplier of digital content, mainly the distributors of long features, in order to allow the projection of this content in a theater under VPF contract with YMAGIS, regardless of the equipment financing model chosen by both parties (Third-Party Investors –financing carried out by YMAGIS- or Third-Party Collector –financing carried out by the exhibitor-). The VPF collection makes it possible to cover a significant part of the financing of digital projection equipment, the balance being supported by the exhibitor under contract with YMAGIS.