Cinema group Vista posts $56.7m 2020 loss, sees rebound this year

Monday, 1 March 2021

Vista is confident cinemas will rebound from the Covid-19 pandemic.

Cinema software company Vista Group has endured its toughest year ever as Covid-19 shut down theatres across the world, however the company expects a rebound this year as the rollout of vaccines reduces case numbers and movie releases remain stable.

Vista posted a loss of $56.7 million in the 2020 calendar year, from a $12.8m profit in 2019.

The company’s businesses span the full remit of the film industry, from production and distribution to cinema exhibition. The closure of cinemas across the world last year hurt Vista, prompting it to raise $65m from shareholders, write down the value of its assets by $28.4m, cut jobs, and take $5.9m in wage subsidies.

“We can’t think of a tougher year than what was thrown at us in 2020,” chief executive Kimbal Riley and chairwoman Susan Peterson said in a letter to shareholders in the annual report published on Monday.

* Global cinema reopenings a healthy sign for Vista Group

* Event Cinemas lay off 65 staff

* Vista Group plans job cuts as global cinemas remain closed

“We are confident that the cinema experience will rebound at some point during the year, and we are in good shape to help lead that rebound,” they said.

Cinemas in China re-opened in late July and have been well patronised, they said. Some 90 per cent of cinemas in China have remained open, although they are heavily reliant on local content.

In the rest of the world, cinemas re-opened as the Northern Hemisphere summer progressed, with 75 per cent of cinemas open by October, but the onset of the second wave of Covid-19 in autumn and winter saw that reduced to just over 50 per cent, propped up by a strong performance in the Asia Pacific region.

“The rebound in China (and in Australia, New Zealand, and Japan) supports our positive view of the future – when cinemas open and content flows – people flock back to the cinema experience,” they said.

Japan and China achieved record box office revenue for Chinese New Year.

Vista has enough cash and debt to see it through 2021, they said.

The company is burning through $3.7m of cash a month, within its forecast range of between $3m to $4m and it expects to continue at a similar level and then progressively recover as content begins to flow. It ended the year with $67m of cash and $39m of undrawn debt facilities.

Vista is stronger and more competitive in a post-Covid world given its lower cost base and stronger customer relationships, they said.

It was too early to provide guidance for the full-year, they said. The company has suspended dividend payments.

Shares in Vista last traded at $1.70 on Friday and have dropped 42 per cent over the past year.