Ymagis Reports Full Year 2014 Financial Results, EBITDA Increased by 13%

25 March 2015

YMAGIS (ISIN: FR0011471291, MNEMONIC: MAGIS), the specialist in digital technologies for the cinema industry, released today its financial results for the fiscal year 2014 (FY14); audit procedures currently still underway.


During FY14, YMAGIS has acquired the Belgian group dcinex. The acquisition was completed in October and the contribution of dcinex has been consolidated as from the fourth quarter. However, to facilitate comparability of the results, the analysis below is based on the pro-forma (1) accounts. YMAGIS’ published consolidated figures, incl. dcinex as from October 1 st, 2014, are shared at the end of this document.


Full Year 2014


Overall, in 2014, YMAGIS Group’ pro-forma sales have been growing by 8.2% to reach 150.4 M€.

The FY14 VPF sales (47.5% of YMAGIS’ total sales) amount to 71.5 M€, up by 10.2% year-on-year. This growth mainly results from the full year effect of the screens digitized over 2013; which was the end of the cinema digitization in most European countries.

As of December 31, 2014, the Group has deployed 6,027 screens under VPF contracts in 19 European countries, vs. 5,689 screens deployed at the end of 2013.

Exhibitor Services sales (44.1% of YMAGIS’ total sales) have been increasing by 2.1% to 66.3 M€. The equipment monitoring and maintenance activity (8.6 M€ in 2014) has continued its growth (+11.6% vs. 2013), mainly driven by the number of digital screens deployed under the VPF model. Equipment Sales & Installation remained stable at 56.1 M€; a very strong performance considering the end of the digitization cycle. The Group benefitted from development in new territories, opening of new cinemas, new technology adoption (4K projection, 3D/immersive sound) and screens’ digitization in late adopting countries such as Spain and Greece.

The 2014 sales from the Content Services Business Unit (8.4% of YMAGIS’ total sales) has been growing by +36.9%, mainly driven by the content delivery activity (up by 53.0% to 8.8 M€). This content delivery growth benefitted among others from SmartJog’s and Arqiva’s cinema delivery business’ contributions, respectively consolidated as from the 1st of December 2013 and the 1st of April 2014. As a reminder these figures do not include the sales from DSAT (satellite content delivery company 49.8%-owned by dcinex and 50.2% by Eutelsat), which has been included in the YMAGIS accounts under the equity method.


The Group’s EBITDA has been growing by 13.2% to 53.6 M€; leading to an EBITDA margin of 35.7%.

The operating costs structure of the group (excl. depreciation), grew by 5.5% (or 5.1 M€). The bulk of this growth results from the content delivery activity, which now supports the satellite costs from SmartJog (2.4 M€ vs. 0.2 M€ in December 2013) and Arqiva’s cinema delivery business’ satellite and network costs (1.6 M€ since April 2014).

Depreciations increase by 9.3 M€ (+30.5%), of which 6.7 M€ resulting from the increase in number of screens deployed under third party financed VPF model, and 2.2 M€ resulting from Content Delivery.

Moreover, YMAGIS records an increase in interest charges by +7.0%, impacted by non-cash exchange rate charges resulting from the GBP fluctuations.

Hence, the pre-tax current result stands at 3.1 M€ vs. 7.0 M€ in 2013. Yet, the pro-forma 2014 figures include 1.4M€ non-recurring charges accounted for in the context of the dcinex acquisition. Excluding these non-recurring elements, the pre-tax current result would have reached 4.5 M€ or 3% of sales.

Despite this decrease, the consolidated tax charges have been slightly increasing to 2.7 M€, of which 1.3 M€ to be paid in 2015 and 1.4 M€ in deferred tax charges resulting from the consumption of part of the tax deficits activated during past years.

The share of the results from the companies accounted for under the equity method reaches a 0.8 M€ loss, mainly resulting from DSAT.

Finally, the net result group share stands at 0.7 M€ vs. 3.2 M€ in 2013.


The consolidated equity amounts to 42.6 M€, up by 4.3 M€ vs. 2013 pro-forma(1) . Year-on-year, the Group’s debt decreases by 23.7 M€ (pro-forma) to reach 125.3 M€, of which 114 M€ linked to VPF-activities.


A Post-closing bond issuance of 36.5 M€ in February 2015 allowed the strengthening and optimisation of the Groups’ financing structure:

  • Pay-back the 15.4M€ OBSA (bond with warrants issued in October 2014 to acquire dcinex), of which the interest rates should have reached 7.5% in January 2016 (vs. 3.5% today) ;
  • Cancel all the attached warrants; eliminating the capital dilution risk of maximum 18.9% (post dilution) ;
  • Buy-back the 13.9 M€ dcinex junior debt bearing 9.8% interest;
  • Re-build cash reserves used in the context of the dcinex acquisition.

Hence, as of December 31, 2014, and incl. the impact of the February debt issuance, the cash position of YMAGIS Group stands at 24.0 M€ (10.1 M€ as of December 31, 2013 pro-forma).


The dcinex integration process has allowed identifying operating synergies at all levels. In total, the identified synergies amount to 1.8 M€ per year. The Group will benefit from those recurring synergies for a total amount of 1.5 M€ in 2015, then 1.8 M€ as from 2016.

Moreover, the Group operates three transponders in the context of its satellite transmissions, two with Intelsat for SmartJog Ymagis Logistics (SYL), and a third one with Eutelsat for the DSAT joint-venture. Tightening the relationship with DSAT would allow, at a later stage, to save the costs related to one of these transponders and to generate additional recurring synergies of about 1.4 M€, expected as from 2017.


The dynamics of the markets in which YMAGIS operates are the key drivers of future development in each of the business in which the Group is active.

The end of the European screens’ digitization process should translate into the progressive decrease of VPF revenues until 2021/2022. Yet, the debt associated with the third-party financed VPF model is expected to be reimbursed much faster than the revenue decrease.

In parallel, the growth of services is expected to progressively replace the VPF-related revenues. YMAGIS strong foothold in Europe, where it already has presence through subsidiaries established in 14 countries, should see further expansion to new territories, inside and outside of Europe, where to offer even more services to cinema exhibitors, film and other content producers and distributors.

In Exhibitor Services, new technologies such as 4K projection, immersive/3D sound, laser projection, but also the widening of the product portfolio (seats, lighting, digital signage, design, etc.) and the sale of new software solutions (TMS, booth-less solutions, ticketing systems, programming tools, content analysis, etc.) should allow the Group to rapidly generate additional revenues.

In this context, the group will benefit from the expected temporary slowdown linked to the end of the digitisation cycle, to grow its market share by proceeding to selected acquisitions of competitors. As an example, Ymagis just reached an agreement, subject to usual condition precedent, to acquire the French company R2D1 active in digital equipment sales and maintenance in France, Switzerland and in several African countries. R2D1 achieved 2.4 M€ in sales in 2014.

Moreover, YMAGIS expects the beginning of the equipment replacement cycle to start with exhibitors equipped with first generation projection systems. This replacement market should only be contributing significantly as from 2016.

In Content Services, the satellite content transmission activity should continue its dynamics and contribute more with:

  • The expansion of the connected cinema network to reach a penetration rate of 60% in the coming years (vs. 30% today);
  • The signature of new delivery contracts with the Majors and independent distributors to increase the number of copies delivered without additional costs;
  • The development of « Live » events management activities;
  • The growth of the revenues resulting from its B2B content download platform currently being deployed (« Cinema on Demand »).

This activity will also become heavily profit generating on completion of the on-going rationalization in place (fixed costs reduction, satellite capacity optimization, and potential integration of DSAT).


Full Year 2014