EBITDA increases 188%, with FCF positive in sight

Vista Group International Limited (NZX & ASX: VGL) reported its half year results for the six months ending 30 June 2024 today, demonstrating benefits of its 2023 business transformation – delivering a significant operating improvement over 1H23, growing momentum of cloud client transitions, and reaffirmed it will be free cash flow positive for the fourth quarter of 2024. Financial overview • EBITDA1 of $7.2m (up $4.7m on 1H23) • ARR2 of $129.4m (up 9% on 30 June 2023) • Total revenue of $69.6m (in line with 1H23), with Recurring Revenue3 of $63.4m (up 5% on 1H23) and SaaS Revenue3 of $25.4m (up 20% on 1H23) • Operating cashflow of $3.0m, or $6.1m after adjusting for movements in working capital4 (up $8.5m on 1H23 on a like for like basis) • Loss for the period of $2.7m (a 68% improvement on 1H23). Outlook • 2024 total revenue guidance of $148m-$153m (was $152-$157m), Recurring Revenue3 of $133m-$137m and Non-Recurring Revenue3 of $15m-$16m (was ~$18m) • On track to be Free Cash Flow5 positive in 4Q24 • 2024 EBITDA1 margin of 13-14% (stronger than expected) • 2025 EBITDA1 margin upgraded to 16-18% (was 15%+) • On target to achieve December 2025 ARR2 of $175m+. Operational overview • 247 sites were live on Vista Cloud solutions on 5 August 2024, including Major Cineplex (79 sites), Everyman (44 sites), Pathé (29 sites), NCG (27 sites), and Megaplex (15 sites) • New client Cine Colombia (48 sites) has signed to move its cinema circuit to Vista Cloud’s Moviegoer Engagement solution • The new business structure is now fully operational, with a $4.8m reduction in total cost to serve and operating expenses6 from 1H23. Industry overview • Deadpool & Wolverine has smashed domestic box office records, becoming only the ninth film to open above US$200m, representing the sixth-highest opening weekend, and the highest R-rated film opening weekend of all time7 • Animated coming-of-age Pixar film Inside Out 2 has taken US$1.5b at the box office, making it the highest grossing animated film of all time7 • Highly successful film franchises anchor the 2H24 movie slate including Joker: Folie à Deux, Moana 2, Transformers One, The Lord of the Rings: The War of the Rohirrim, Mufasa: The Lion King, and Gladiator II • 1H24 domestic box office of US$3.6b, down ~19% on 1H237 due to the impacts of the 2023 writers’ and actors’ strikes.   Please refer to the following attachments for full details of the results: • 2024 Interim Report • 2024 Half Year Result Investor Presentation • 2024 Half Year Result Media Announcement • 2024 Half Year NZX Results Announcement. To assist investors in understanding Vista Group’s new segmental reporting8 from 2024 onwards, an excel data sheet including comparative values to 1 January 2020 has been included in Vista Group’s Investor Centre: vistagroup.co.nz/investor-centre. Also included in this data sheet are other previously reported financial metrics and site count information. 1 EBITDA is a non-GAAP measure which is defined as earnings before net finance costs, income tax, depreciation, amortisation, and “other gains & losses” (see section 2.3 of the 2024 Interim Report). 2 ARR is Annualised Recurring Revenue, calculated as trailing 3 month Recurring Revenue multiplied by four. Aspirations for 2025 ARR assume no delays in key cloud transition projects and no adverse change in industry or operating outlook. 3 Recurring Revenue, SaaS Revenue and Non-Recurring Revenue are defined in section 1 of the 2024 Interim Report. 4 Net changes in working capital are reported in section 3.1 of the 2024 Interim Report. 5 Free Cash Flow and Cash Usage are non-GAAP measures and are calculated using the net movement in cash held, less cash used or applied to business acquisitions / earn-outs / movement in loans / exceptional items included within “other gains and losses” (see section 2.3 of the 2024 Interim Report). 6 Total cost to serve and operating expenses are disclosed in section 2.3 of the 2024 Interim Report. 7 Sources: Box Office Pro, Box Office Mojo, Rotten Tomatoes and Variety Magazine. 8 New reporting segments are defined in section 2.2 of the 2024 Interim Report, with 1H23 and FY23 comparative values also supplied. A datasheet is available on vistagroup.co.nz/investor-centre which contains reporting segment details by 6 month intervals from 1H20. ENDS For further information please contact: Stuart Dickinson Chief Executive Officer Vista Group International Limited Contact: +64 9 984 4570 Matt Cawte Chief Financial Officer Vista Group International Limited Contact: +64 9 984 4570 About Vista Group Vista Group International Limited is a global leader in providing technology solutions to the international film industry. With brands including Vista, Veezi, Movio, Numero, Maccs, Flicks and Powster, Vista Group’s expertise covers cinema management software; loyalty, moviegoer engagement and marketing; film distribution software; box office reporting; creative studio solutions; and the Flicks movie, cinema and streaming website and app.