Ymagis Group Reports Full Year 2015 Financial Results, Defines New Strategic Plan & Brand Identity

29 March 2016

YMAGIS (ISIN: FR0011471291, TICKER: MAGIS), the specialist in digital technologies for the motion picture industry, today reported its consolidated revenue figures for the 2015 fiscal year. Audit procedures are still underway.

Note: YMAGIS wishes to remind that the 2014 fiscal year was marked by the acquisition of the Belgian group dcinex SA, which is included in the Group’s consolidated financial statements as of 1 October 2014. In order to provide a better comparison basis for activity during the 2015 fiscal year, pro forma (1) revenues are indicated in the above chart and upon which the analysis mentioned below is based. The 2015 twelve-month revenue comparison with the 2014 figures published, including dcinex as of 1 October 2014, is presented at the end of this document. The Group also wishes to remind that the consolidated financial statements take into account R2D1 as of 1 July 2015, Proyecson as of 1 October 2015 and Eclair’s activities following its takeover in August 2015.


For the 2015 fiscal year, YMAGIS generated cumulative revenue up +4.8% over the 2014 fiscal year pro forma (1).

The VPF division recorded revenue of €73.8m, up 3.2% compared to the prior year, thanks to the contracts signed in new territories in late 2014 (Greece and the Balkans) and in April 2015 (Turkey), though revenue performance was adversely affected by the end of this financial model in Austria (268 screens), which marked the first VPF recoupment.

Exhibitor Services revenues are down -10.4% at €59.4m. The Group was able to limit the impact of this downtrend thanks to the strong performance of the Equipment Sales and Installation business in the fourth 2 quarter. Revenue from this business, which represents 83% of Exhibitor Services sales in Q4 2015, was positively impacted by the following three factors: (i) Continued equipment sales to new cinema builds across Europe, (ii) Investments made by cinema owners in new image and sound technologies, and (iii) Revenue generated by R2D1 and Proyecson, consolidated in July and October 2015, respectively.

Excluding the unfavorable base effect of the 2014 refinancing of equipment to leasing companies under VPF contracts signed with cinema owners, which amounted to €12.2m, revenue for the Exhibitor Services business unit is up 9.8%.

The Content Services business unit has consolidated since 1 August 2015 Eclair Group’s main activities, contributing a cumulative total of €10.5m for the 2015 fiscal year. For the 12-month period, revenue is up by +93.4% at €24.5m. To increase visibility, the Group has restructured the unit’s activities into the following three units: (i) Distribution Services and Preservation, (ii) Post Production/Restoration, and (iii) Localization. All three activities positively contributed to the growth of the Content Services business unit during that period.


The Group’s EBITDA remains almost unchanged at €53.2m, 34% of total revenue.

Purchases consumed are down 14.2% as a result of a decline in equipment sales revenues.

Purchases and external costs as well as personnel costs respectively increased by 10% and 50% due primarily to scope changes (Eclair, R2D1, Proyecson). The fiscal year also saw an increase in the number of employees to help ensure the Group’s international growth.

Depreciation and amortization charges were up 13.6% due to the combined effect of the amortization of intangible assets identified during dcinex’s goodwill allocation (€3.6m for a total of €10.1m as intangible assets) and the full-year amortization of Content Services-related investments.

Despite the interest charges from Euro-PP financing, the financial result is up 12.1% for the fiscal year as a result of the significant lowering of VPF-related debt.

Taking into account these items, total earnings before tax were negative at -€1.4m.

The income tax expense is down to €0.9m after taking into account €2.5m in deferred taxes.

After minority shareholdings, the Group’s net income stands at €-0.6m, or €+3.0m excluding dcinex’s goodwill effect, compared to €0.7 M for the prior year period.


The Group’s consolidated equity is at €41.1m. The Group’s net debt is down €25.5m over the prior year period as of 31 December 2014 at €99.8m primarily due to debt repayment related to VPF activities. The leverage ratio (Net debt/EBITDA) is down to 1.9 from 2.3 during the prior year period.


As at 31 December 2015, the cash position of the Group stood at €23.2m, €5.7m of which is assigned primarily to future repayments of bank loans and leases related to the VPF business. This position integrates €40m in private bond placement raised at the start of the year, the repurchase of dcinex’s subordinated junior debt of €14.3m from lenders and the full repayment of the bonds (OBSA) subscribed by dcinex stakeholders for €15.4m.


2016: A year of consolidation, cost-saving measures and new synergies

Following two fiscal years defined by significant external expansion that led to a trebling of the Group’s revenue and the growth of its services portfolio, the management has decided to devote 2016 to consolidation and the implementation of cost-saving measures & synergies among the Group’s various entities. This consolidation will be seen in various structural measures undertaken to increase the financial performances of these business activities: (1) The finalization of the rationalization of the satellite delivery services onto a single platform used by the Smartjog, Arqiva and DSAT networks, (2) the conclusion in late April of the restructuring of the Eclair Group’s primary business activities following its takeover in August 2015, (3) the implementation of a costsavings plan across the Group, (4) the execution of a limited number of external growth operations to increase synergies based on each operation’s ability to improve short-term profits, and, finally, (5) the hiring of a number of managers to oversee each of the operational divisions added following the acquisition of Eclair’s primary business activities.

Exhibitor Services & Content Services, the Group’s primary growth drivers

In terms of VPF activities, 2016 will be marked by recoupment in a number of smaller territories with more significant recoupments to follow in 2017. This will translate into a progressive lowering of revenues generated by these activities, while also leading to the Group’s massive deleveraging and a significant increase in cash flow.

As for the Exhibitor Services business, the last few years have been primarily driven by the digital projection transition of cinemas in Europe, which led to a positive uptrend in the cinema exhibition business. As such, the continued equipment sales to new cinema builds across Europe, the replacement of the first generation projection systems as well as investments made by cinema owners in new image and sound technologies (Dolby Atmos, 4K, laser projection systems) should contribute to increased revenues from the Exhibitor Services business. Having become one of the market leaders cinema exhibitors turn to for digital technologies and services, YMAGIS is especially well placed to benefit from these trends.

In 2016, the Content Services business will be primarily impacted by two key trends:

  • Following the implementation of cost-optimization strategies for Eclair’s operating divisions, including the closing of two Paris region sites, the focus moving forward will be on the globalization of specific activities such as localization (subtitling, versioning, etc.) and restoration. There will also be investments made in R&D to improve client support services and increase operational productivity, thereby leading the business to be more competitive.
  • The rationalization and unification of cinema content delivery activities under one single structure with the following notable points: a technologically-advanced platform with a new, consistent and unified organizational structure and the use of two rather than three satellite transponders in 2017. The end goal being a return to profitability of this business activity in 2017.

Definition of a new strategic plan with a rebranding initiative

In light of the changes in consolidation scope since the company’s IPO in 2013, YMAGIS has developed a strategic 3-year plan to structure the development of its services through the end of 2019 by focusing on the activities with the highest profit margin and the greatest growth potential. An outline of the plan will be made public in the company’s half-year earnings report in September.

The acquisitions carried out over the past two years have led YMAGIS to re-evaluate its visual identity and brand positioning as a whole in the interest of streamlining and increasing the efficiency of its organizational structure.

All Exhibitor Services activities will now be operated under the CinemaNext brand. The central services, such as supply chain management, will be based out of CinemaNext’s main office in Liège, Belgium. All Content Services activities operated under the Eclair, Ymagis, dcinex and Smartjog Ymagis Logistics banners, will now be unified under the historic brand Eclair. Eclair’s main office is located in Vanves, France.

All VPF services activities will continue under the Ymagis and dcinex names until their completion.

Headquartered in Paris (France), Ymagis also remains the parent brand of the holding company and will continue to report to financial markets and investors under that name.