Highlights

  • Vista Group (ASX:VGL) reported 1H26 revenue of NZ$86.3 million, up 12% on the prior corresponding period.
  • SaaS revenue rose 38% to NZ$43.5 million, while ARR reached NZ$170.1 million.
  • FY26 revenue guidance was raised to NZ$179 million to NZ$184 million.
  • HOYTS signed a six-year Operational Excellence agreement covering more than 60 cinemas in Australia and New Zealand.

Vista Group International (ASX:VGL) Ltd develops cinema management software, supplying technology that cinema operators use to run ticketing, scheduling and day-to-day operations.24, up 4.19% in the day's trade.

Company Business

Vista Group provides software to cinema exhibitors and the wider film industry. Its core offering is moving from on-premise installations to the Vista Cloud platform, which is sold on a subscription basis. The company also offers Operational Excellence, described as its full cloud offering, as well as Vista Payments and AI-based capabilities. The group is listed on both the NZX and the ASX and reports its financial results in New Zealand dollars. Its customers include large cinema chains across Latin America, Europe, the United Kingdom and Australasia. Revenue is increasingly recurring in nature, with subscription and SaaS income making up a growing share of the total as clients migrate to the cloud. The company has identified Vista Payments and AI as further areas of growth alongside its core cinema platform, and it continues to expand delivery capacity so that contracted sites can be brought onto the cloud more quickly.

Recent Development

In early August 2026, Vista Group (ASX:VGL) released its results for the six months to June 2026 and lifted its full-year revenue guidance. Contracted enterprise market share rose to 48% from 46%, and 44% of sites were contracted to the Vista Cloud platform. Thirty-seven per cent of sites were contracted to Operational Excellence.

The company highlighted several client sites, including Cinépolis Mexico with 504 sites, Cineworld UK with 88 sites and Cineplexx Europe with 59 sites. Cinemex, with 312 sites, returned to Vista from a competing solution. The Operational Excellence delivery pipeline was reported at more than 1,000 sites.

A week later, Vista announced a six-year agreement with existing client HOYTS to move its core cinema operations in Australia and New Zealand onto Operational Excellence. The agreement covers more than 60 cinemas and over 500 screens. Chief executive Stuart Dickinson said the platform "will enable HOYTS to take advantage of our latest cloud capabilities." HOYTS Group President and CEO Damian Keogh noted that the partnership has spanned nearly two decades.

Financial Performance and Sector Context

For the first half of 2026, Vista Group reported total revenue of NZ$86.3 million, up 12%. Recurring revenue rose 14% to NZ$80.1 million, and SaaS revenue climbed 38% to NZ$43.5 million. Annual recurring revenue (ARR) was NZ$170.1 million, up 17% on a year earlier.

EBITDA increased 24% to NZ$12.4 million, with the FX-adjusted EBITDA margin improving to 13.8%. Operating cash flow rose 25% to NZ$9.2 million. The group recorded a net loss from continuing operations of NZ$1.5 million for the half, and no interim dividend was declared. Vista Payments had more than NZ$2 million in contracted ARR, with 11 clients live at the end of June 2026.

Full-year revenue guidance for FY26 was raised to between NZ$179 million and NZ$184 million, from NZ$176 million to NZ$182 million previously. The EBITDA margin was described as on track for the 18% to 20% range, and free cash flow is expected to be neutral in the second half.

Vista Group (ASX:VGL) operates in a market linked to cinema attendance and exhibitor investment budgets. Mr Dickinson pointed to the box office outlook and the upcoming film slate as factors supporting confidence, while noting that momentum in Vista Cloud continues to build.

Risks to Consider

Vista's performance depends on cinema operators' willingness to invest in technology, which can be influenced by box office conditions and the release schedule of major films. The shift from licence-based to subscription revenue can affect reported earnings during the transition, as reflected in the net loss for the half. Delivering cloud migrations across a pipeline of more than 1,000 sites requires implementation capacity, and delays could affect revenue timing. The company reports in New Zealand dollars, so currency movements can influence results. Competition in cinema software also remains a consideration, as clients can move between providers.

What to Watch Next

Further reported developments to monitor include:

- Full-year 2026 results against revenue guidance of NZ$179 million to NZ$184 million.

- Whether the EBITDA margin lands within the 18% to 20% range.

- Progress in converting the Operational Excellence pipeline into live sites, including the HOYTS migration.

- Growth in Vista Payments clients and contracted ARR.

- Further changes in contracted enterprise market share and SaaS revenue.

Key Insights

Vista Group's first half of 2026 showed growth in recurring and SaaS revenue, higher EBITDA and an upgrade to full-year revenue guidance. Contracted enterprise market share reached 48%, and the HOYTS agreement adds more than 60 Australian and New Zealand cinemas to Operational Excellence. The group still reported a small net loss for the half and depends on cinema industry conditions and its delivery capacity. The full-year 2026 result will show whether revenue and margin outcomes match the updated guidance.