YMAGIS REPORTS FULL YEAR 2014 REVENUES: €150.4 MILLION ON A PRO-FORMA BASIS, UP +8.2%
YMAGIS (ISIN: FR0011471291, MNEMONIC: MAGIS), the specialist in digital technologies for the cinema industry, today published its consolidated full year 2014 revenues.
YMAGIS wishes to emphasize that the 2014 fiscal year was marked by the merger of the Group with Belgium-based company dcinex effective October 2014, and for which financial results were consolidated in YMAGIS only for the fourth quarter ended December 31, 2014. However, in order to present a better readability of the company’s new scope of activities on a full-year basis, pro-forma(1)revenues are indicated in the following spreadsheet and upon which the following analysis is based. Consolidated revenues for YMAGIS including dcinex’s activities beginning October 1, 2014 are available in a spreadsheet at the end of this press release.
Pro-forma(1) Revenues, Breakdown by Activities
VPF (2): A pro-forma(1) growth of 10.2% in 2014
The VPF division (47.5% of pro-forma(1) cumulative revenues) indicates during the 12-month period ending December 31, 2014 pro-forma(1) revenues of €71.5 million, +10.2% in organic growth compared to 2013. This increase is in line with the average number of cinema sites operated by the Group under VPF contracts: 5,728 cinemas as of December 31, 2014 compared to 5,160 in the prior-year period.
In 2014, VPF-related activities benefit primarily from a full-year positive effect from the number of cinema sites digitized in 2013. For most European countries, 2013 marked the completion of the digital cinema roll-out period.
As of December 31, 2014, the number of cinema sites operated by the Group under VPF contracts is 6,027, located in 19 European countries, compared to 5,689 in the prior-year period.
Exhibitor Services(equipment sales/installation and servicesto digital cinema exhibitors): Revenues remain steady despite the near completion of digitization cycle in Europe
With the digitization cycle near completion – 91% of the European cinemas are equipped with digital projection systems as of December 31, 2014 -, YMAGIS indicated during the second half of 2014 an expected contraction in its equipment sales/installation-related activities. However, YMAGIS maintained its 2014 revenues at €55.6 million, underpinned by the development of its activities in new markets, the opening of new cinema sites, the adoption of new technologies (4K projection, immersive/3D sound) and the digitization of cinema in countries lagging behind in the cycle, among them Spain and Greece.
Online and support-related activities indicate total revenues of €10.1 million in 2014, up +16.7% compared to the 2013 fiscal year. This growth is mainly driven by the growth of the number of cinemas installed under VPF agreements but is also the result of an increase in the number of new clients and/or a noticeable surge in average revenues per screen. Indeed, YMAGIS succeeded to secure agreements for on-site maintenance of their cinemas with a growing number of clients to which the Group already provides online/support-related services.
During the fourth quarter of 2014, Exhibitor services indicate a decline in total revenues (-15.0%) at €18.7 million. However, revenues are up at €66.3 million for the 2014 year, +2.1% in organic growth.
Content Services (services to both producers and digital content distributors): Strong increase in revenues, up +36.9% at €12.6 million
Revenues from Content Services rose 53% in the twelve-month period ending December 31, 2014, mainly driven by delivery-related activities. This is due to several favorable business factors in 2014 as indicated below:
- Full-year activities of Smartjog, a company integrated on December 1, 2013
- Nine-month activities of the connected-cinema network Arqiva, integrated on April 1, 2014
As a reminder, the aforementioned numbers exclude revenues generated by DSAT, a company specializing in content delivery by satellite, partly-owned by dcinex (49.8%) and Eutelsat (50.2%), and for which activities are consolidated on an equity basis.
Excluding DSAT, the number of connected cinemas either to YMAGIS or Arqiva, without taking into consideration mutual clients, rose to 2,600 cinemas as of December 31, 2014, from 1,925 in the prior-year period.
A few months following completion of the merger of dcinex and YMAGIS, both teams are now united under the same management executives. The integration process is well advanced, which should allow YMAGIS to reap the benefits in terms of cost and revenue synergies. The consolidated financial earnings of the Group for the 2014 fiscal year will be communicated on March 25th after stock market close.
Below are consolidated 2014 full-year revenues for YMAGIS, including dcinex beginning October 1, 2014.
Consolidated 2014 Full-Year Revenues – Breakdown by Activities