30 August 2013

Turnover: +13.0%

Income before taxes: +27.4%

YMAGIS (ISIN: FR0011471291, mnemonic: MAGIS), the specialist in digital technologies for the cinema industry, has published its 2013 half-yearly results, which were finalized at a board meeting today after undergoing a limited review by auditors.

2013 Half-yearly results


Every line of business in the Group recorded double-digit growth over the period, with the exception of the sales and installation of equipment.

VPF (2) segment revenues (64% of turnover), representing the Group’s historic activity, totaled 12.8 m€ increasing by +25.3%, reflecting the growth of the number of cinema screens under VPF contract with YMAGIS (409 new screens rolled out between June 30, 2012 and June 30, 2013, including 124 during the first six months of 2013). On June 30th 2013, the number of cinema screens under VPF contract with YMAGIS reached 2,286 versus 2,162 on December 31st 2012, and 1,877 a year earlier.

Services segment revenues (36% of turnover) fell by 3.5% to 7.3M€, as a result of a drop in sales and installations of digital projection equipment, notably because of the anticipated fall in revenues in France, where most theaters are already equipped. The slowdown in this activity automatically contributed to a decrease in the Cost of Goods and Services Sold by 32.5%. All other Group activities report double-digit growth over the period: Laboratory/Post-Production (+38.9%) and Digital Cinema Online Support Services/Maintenance (+48.7%).

(1) Restated for the element attributable to minority shareholders, the Group’s net income amounts to 955K€ versus 883K€ in first half-year 2012 (+8.1%).

(2) 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 or Third-Party Collector – see below). 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.


In order to better understand the company’s results analysis, it is worth noting that the financing of digital projection equipment that gives rise to VPF collection by YMAGIS follows 2 possible methods on offer by the Group to meet the specific expectations of every contracted exhibitor:

  • The Third-Party Investors model, through which YMAGIS finances digital equipment, makes lease payments to the financial institutions granting the leasing, and invoices a share of the equipment financing to the related exhibitor. In accordance with IFRS standards, the leases are restated in the Income Statement as financial expenses for the portion relating to finance charges, and as debt reduction in the Balance Sheet for the portion representing the asset. Furthermore, equipment that is financed in this way is posted in the assets of YMAGIS’s Balance Sheet and depreciated over 8 years;
  • The Third-Party Collector model, through which the equipment is financed by the exhibitor himself, who invoices YMAGIS for a contribution that is listed as external charges in the Group’s accounts.

Both models have neither an impact in terms of VPFs’ revenue recognition nor in terms of liquidity but lead to a different presentation of the operations in the Income Statement and in the Balance Sheet.

An increase in operating income, in a context of strong investment

Following the Group’s strong development in France and abroad, the charges’ structure increased significantly during the first half-year.

In order to prepare for the Group’s future growth, the structures of the operational teams and management were reinforced, and so the payroll increased, as anticipated, by 41.0% with the recruitment of 26 new people over the period (net of leavings), bringing the Group’s staff to 116 employees on June 30, 2013, versus 77 on June 30, 2012, and 90 on December 31, 2012.

Regarding external charges, in the VPF segment, the fees paid to the exhibitors increased significantly, due to the new screens installed over the period within the Third-Party Collector model. The charges related to the Services segment increased as well, mainly due to additional expenses related to the deployment of the activities of Digital Cinema Online Support Services & Maintenance, and of the Laboratories’ activity in the first half-year, with the ramp-up of the Paris site, the opening of a laboratory in Barcelona on July 1st and the construction of the Berlin laboratory, which is planned to open on October 1st .

Depreciation charges increased by 12.5%, mainly due to the increase in digital projection equipment financed through leasing contracts under the Third-Party Investor model.

Despite the strong increase in charges, essential for the Group’s future growth, the 2 segments contribute to its global profitability, with an operational result reaching 2.9 m€, an increase of 5.3%.

Income before taxes and non-recurring items: +27.4%

On June 30, 2013, YMAGIS recorded a decrease of 14.5% in its financial loss, which can be explained on one hand by the decrease in the average rate of debt financing the digital projection equipment carried over by the Group within the Third-Party Investor model, and on the other hand by the decrease in financial charges related to convertible bonds, due to their conversion in early May at the time of YMAGIS’ IPO, and finally by the improvement in the Group’s liquidity also linked with the IPO.

As a result, YMAGIS reports income before taxes and non-recurring items of 1.6 m€, an increase of 27.4%, and net income close to 1.0 m€, representing an increase of 27.3%.

A strengthened financial situation

During the first half-year, YMAGIS held its Initial Public Offering on the regulated market of NYSE Euronext Paris, compartment C, and on this occasion raised 11.6 m€ from investors in France and abroad, making it possible to report a strengthened financial structure. On June 30, 2013, YMAGIS had 11.4 m€ in liquidity (5.2 m€ on 2012/12/31) and shareholders’ equity of 19.3 m€ (7.9 m€ on 2012/12/31).

The net financial debt (standing at 30.9 m€ on June 30, 2013) is calculated by adding together 8.2 m€ in debt (excluding leasing) and 34.1 m€ in debt related to leasing contracted by YMAGIS with financial institutions for the financing of digital projection equipment within the Third-Party Investors model, then subtracting 11.4 m€ in liquidities.


YMAGIS is confident in the outlook for the second half-year. In the VPF segment, the Group will carry on its expansion strategy for screens under VPF contract in Europe, especially in Spain and Germany.

In the Services segment, the sale and installation of digital projection equipment continues in under-equipped countries while the recent opening of the laboratory in Barcelona and the one scheduled for the laboratory in Berlin at the start of the 4th quarter, combined with the expansion of the Paris laboratory, should allow the company to further reinforce its reach in Europe and its long-term growth potential.

Over the next months, YMAGIS will continue to search for structuring acquisitions in order to strengthen its position in the full range of services offered in the digital cinema sector, in order to speed up its growth and realize its goal of becoming the leader in digital services and technologies for the cinema industry