Vista's revenue grew 10.5% but EBITDA fell 5% and operating cash almost halved

What changed

Revenue rose 10.5% to $144.5m (release headline 11%), but earnings moved the other way. Like-for-like EBITDA fell 5% to $31.1m, PBT declined 12.6% to $18.4m and NPAT fell 11.9% to $10.8m. Operating cash flow almost halved to $15.5m from $27.6m, and the cash balance dropped to $19.5m from $34.4m. Gross borrowings were broadly unchanged at $11.8m, so the group remained in a net cash position of roughly $7.7m, down from $22.4m. The final dividend was held flat at 2.1 cents per share. Management flagged core Cinema and Movio revenue growth of 16%, implying the drag came from non-core units (the HY19 commentary had already called out a decline at movieXchange).

What matters

• Earnings quality went backwards alongside revenue growth. Revenue grew double digits yet EBITDA, PBT and NPAT all fell. PBT growth of -12.6% is the cleanest operating read given the effective tax rate fell to 30.4% from 38.1% (which actually flattered NPAT, cushioning the decline to -11.9%). The gap between profit from continuing operations ($12.8m) and NPAT ($10.8m) is not separately reconciled in the supplied excerpts.
• Cash conversion deteriorated materially. OCF/EBITDA on the like-for-like basis fell from roughly 94% to roughly 50%. This is the single most important read on result quality and is not explained by receivables, which actually improved (days outstanding fell from ~124 to ~89).
• Balance-sheet buffer has thinned. Net cash halved despite a steady dividend and a positive reported profit, consistent with the cash-conversion slippage rather than a step-up in borrowings. ROE weakened to 6.6% from 7.7%.

Expectations

No FY20 guidance, medium-term target or forward-work metric was supplied. Against the HY19 anchor, the year was second-half weighted: H1 delivered 46.7% of full-year revenue and ~37% of full-year NPAT, implying an H2 revenue run of roughly $77.0m and H2 NPAT of roughly $6.8m. That shape supports the narrative that core Cinema and Movio accelerated into H2, but the release provides no quantified bridge from like-for-like EBITDA of $31.1m back to statutory figures, and no reconciliation of the FY18 comparatives that have evidently been restated on a like-for-like basis.

Quality of result

Mixed and leaning lower quality. The positives — revenue growth, improved receivable days, a still-positive net cash position, and stated 16% core segment growth — are real but partly offset by the EBITDA decline, the sharp step-down in operating cash flow, the erosion of the cash balance, and a lower effective tax rate that flatters the reported NPAT line. The $31.1m EBITDA figure is a non-GAAP, like-for-like measure without a disclosed statutory reconciliation in the supplied excerpts, which limits how durable a reader can call it. Capex was not disclosed, so free cash flow and dividend coverage cannot be independently verified.

Unresolved

• What drove the ~45 percentage point collapse in OCF-to-EBITDA conversion given receivable days actually improved? Deferred revenue, contract assets, or payables timing would be the natural candidates but are not disclosed here.
• What is the statutory-to-like-for-like EBITDA bridge, and what sits inside the $10.8m NPAT versus $12.8m profit from continuing operations gap (minorities, associates, other)?
• Why did non-core revenue (implicitly outside Cinema and Movio's 16% core growth) decline, and is movieXchange still a structural drag after the HY19 commentary?
• With net cash down roughly two-thirds in a year, is the 2.1-cent final dividend comfortably covered by free cash flow on the next run-rate?

This briefing cannot assess underlying cash earnings power, segment profitability, or dividend sustainability because capex, segment EBITDA, and a statutory EBITDA reconciliation were not provided in the supplied data.

Key metrics

Analytical metrics

This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.