EBITDA up 188% on flat revenue, but operating cash halved and net cash...

What changed

Revenue was essentially flat at NZ$69.6m versus NZ$69.7m. Despite that, EBITDA rose to NZ$7.2m from NZ$2.5m (+188%), the pre-tax loss narrowed to NZ$3.6m from NZ$9.9m (+63.6%), and NPAT improved to a NZ$2.4m loss from NZ$8.7m (+72.4%). The earnings uplift is attributed by management to 2023 business transformation benefits rather than top-line growth.

Segment reporting has been simplified to Cinema and Film, replacing the HY23 Cinema/Movio/AGC split. Cinema carried the result, with contribution margin rising to roughly 30.9% (NZ$17.1m on NZ$55.4m) from about 16.6% a year earlier.

Cash performance moved the other way. Operating cash flow fell to NZ$3.0m from NZ$6.2m (-51.6%), capex was NZ$9.2m, and the cash balance fell to NZ$20.0m from NZ$37.1m (-46.1%). Gross borrowings edged up to NZ$20.1m, shifting the group from a sizeable net cash position (about NZ$18.2m) to broadly flat net debt.

What matters

• Margin step-up looks real at the P&L line. A 470bps swing in EBITDA on flat revenue, with Cinema contribution margin roughly doubling, is consistent with the transformation narrative and is the clearest positive in the release.
• Cash conversion has deteriorated sharply. OCF covered only about 41.7% of EBITDA in HY24, versus 248% in HY23. Pre-lease free cash flow was negative NZ$6.2m with capex at 13.2% of revenue. The P&L improvement is not yet translating into cash.
• Balance-sheet cushion has been consumed. The NZ$17.1m decline in cash, against broadly unchanged borrowings, means the net cash buffer that previously absorbed losses is now largely gone. That tightens the timeline on the stated Q4 2024 FCF-positive milestone.

Expectations

No quantified revenue or earnings target was supplied. Management has reiterated only that the group will be free cash flow positive in the fourth quarter of 2024.

Historical shape from FY23 is strongly second-half weighted: HY23 delivered just 18.8% of full-year EBITDA and 48.7% of full-year revenue, with NPAT loss concentrated in the first half. Annualising HY24 revenue of NZ$69.6m gives NZ$139.2m, slightly below FY23's NZ$143.0m; if the second-half skew repeats, reported H2 revenue and EBITDA should exceed H1. The release supports the direction of travel toward the Q4 FCF target, but HY24 cash outflows of this scale leave limited room for slippage.

Quality of result

The earnings improvement is pre-tax-led rather than tax-assisted — the effective tax rate moved from 14.1% to 25.0%, so PBT growth of 63.6% is the cleaner operating read and is still strong. Within the P&L, Cinema margin expansion on flat segment-group revenue points to genuine cost leverage rather than a revenue-mix windfall.

Quality weakens materially below EBITDA. OCF fell despite EBITDA nearly tripling, which is the reverse of what a durable margin expansion should produce. Trade receivables did fall (days 67.2 vs 79.1), so receivables were a tailwind — meaning the OCF shortfall is not explained by customer-collection drag. With inventory and payables detail not supplied, the specific working-capital or timing driver behind the cash gap cannot be isolated here. Capex at NZ$9.2m (13.2% of revenue) is the other pressure point. Overall, the reported profit improvement looks more durable than the cash result.

Unresolved

• What drove the gap between EBITDA of NZ$7.2m and OCF of NZ$3.0m, given receivables fell? Payables, deferred revenue, or provisions movement is not visible in the supplied materials.
• Is the NZ$9.2m capex run-rate elevated (transformation-related) or a new baseline? Prior-period capex was not supplied for comparison.
• How close is the group to its stated Q4 2024 free-cash-flow-positive point in monthly terms, given HY24 burn and the NZ$20.0m cash balance?
• Like-for-like segment growth (particularly what happened to the former Movio and AGC revenue streams inside the new Cinema/Film structure) is not reconcilable from the supplied excerpts.
• Recurring/SaaS revenue mix movement in HY24 is referenced qualitatively but not quantified in the extraction.

This briefing cannot assess valuation, share-price implications, or the competitive positioning of Vista's cloud transition against peers.

Key metrics

Segment breakdown

Analytical metrics

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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.