Ymagis Group has released its three-year strategic plan, Perform 2020. Following a build-up period that saw revenue quadruple since Ymagis’ initial public offering in 2013, the group is setting the framework for a new profitable growth phase based upon the rationalization of its organizational structure and services offer as well as innovation and international expansion.
The Virtual Print Fee business unit, one of the Ymagis Group’s original revenue sources via the financing of the digital transition of European cinemas, is generating lower revenue, as anticipated. However, the business will continue to contribute significantly to the cash-flow in the coming years, allowing the group sufficient revenue to finance the rationalization and growth of its two other business units, CinemaNext, exhibitor services and Éclair, content services.
As a European services leader through Eclair and CinemaNext, Ymagis Group is working toward a compound annual growth rate of at least 10 percent. The objective is to replace by 2020 the VPF business unit, which represented 41 percent of revenue as of June 30, by the two services business units.
Ymagis Group believes it will reap the benefits of a dynamic marketplace fueled by content development and platforms as well as the continued increase in movie ticket sales. With first-generation digital projection systems now nearly eight years old, an important short- and long-term replacement market is also expected. Finally, Ymagis Group aims to anticipate market needs by rationalizing its businesses and segmenting its offer to concentrate on those with the greatest added value.
The reorganization, implementation of synergies, economies of scale already undertaken and overall management of operations are expected to quickly render Eclair's activities profitable and lead to a profit before taxes of at least five percent for the entire group.
The numbers above do not include revenue and earnings generated by new services or products developed by the group’s various entities.
Ymagis Group recently launched its new digital color solution, EclairColor. The result of synergies between its two services business units, EclairColor significantly improves the quality of image projection in cinemas, which is an important differentiating factor. The technology, which has just been released on the market, received a very positive response from industry professionals at the annual French cinema exhibitors’ convention last month. Building upon synergies within Eclair and the recurrence of the business unit’s six divisions, further new product developments such as EclairPlay, a one-stop platform showcasing Eclair’s complete portfolio of services, are underway. Ymagis Group is also developing a Premium Large Format solution in the interest of providing exhibitors with a new premium product offer.
In its position as a European industry leader and once it has met the parameters for profitable organic growth, Ymagis Group intends to keep playing a consolidation role in the industry and pursue external growth opportunities that will allow it to expand its services portfolio and accelerate its internationalization in high-potential geographic areas. The group anticipates an additional €50 million in revenue over the course of the next three years through its future acquisitions that will generate a profit margin at least equal to the one obtained through organic growth.
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