Ymagis Group today reported its full-year earnings for the 2017 fiscal year December 31. In 2017, saying the group demonstrated its ability to offset the decline in its virtual print fee activities (revenue -11.5 percent at €61.5 million) by the growth of its service activities (+9.0 percent at €118.1 million). The group’s business thus rose slightly by +0.8 percent to €179.2 million. Driven by the full-year integration of acquisitions made in 2016 and by the implementation of the growth strategy based on its services activities, the Eclair and CinemaNext business units saw their revenue increase respectively by +15.4 percent and +3.4 percent at €54.8 million and €63.3 million.
The company said the earnings in 2017 reflected the first results of the group’s optimization and consolidation efforts during this first year of the perform plan, with an improvement in the performances of the Eclair and CinemaNext business units.
Against a background of increased investments in research and development and the drop in VPF business, the consolidated EBITDA decreased by 11.5 percent to €42.5 million, representing 23.7 percent of the revenue as compared to 26.9 percent in 2016. It was primarily affected by the sharp increase in payroll-related costs linked to the changes in scope of activities (+14 percent). This is due to the change made in the revenue mix, moving from VPF towards the Eclair and CinemaNext activities, which are less capital-intensive but require more human resources. Staff numbers thus increased from 726 employees at the end of 2016 to 768 employees at the end of 2017. Purchases, primarily concerning the CinemaNext activity, rose by 4.4 percent in line with the volume of business. Other purchases and external costs remained stable.
Depreciation and amortization fell by 9.3 percent to €35.0 million as compared to €38.6 million in 2016 due to VPF-financed digital equipment being almost fully depreciated. The REBIT fell by 20 percent to €7.5 million, also due to the effect of the change in mix.
Net financial charges continued to fall, dropping from -€6.9 million to -€4.1 million in 2017. The cost of digital equipment financing is in the process of dropping, resulting in a corresponding lowering of the group’s debts.
The group’s net earnings significantly improved and became positive again at €0.8 million versus a loss of €11.7 million the previous year. In 2016, the group had recorded a net non-recurring charge of €7.9 million for the exceptional depreciation of the RBC satellite technology, which had a direct effect on the EBIT and the group’s net earnings.
For 2018, the group is continuing its growth and profitability improvement strategy with its sights set on promising commercial developments in Africa and the Middle East where the group has just opened a new office, the development of the high dynamic range EclairColor technological standard in the United States and recent innovations developed by the Group, including Sphera and EclairGame.
At the center of this transformation, the group has developed several service platforms which are boosting the digital transformation of the Eclair business unit and providing customers with innovative, optimized and enhanced solutions for still more added value and economies of scale.
Ymagis is also preparing the launch of a pioneering virtual reality offer in 2018 on its own and in partnership with cinema exhibitors. Virtual reality is a booming global market that is expected to generate $75 billion in revenue in 2021 according to the Greenlight Insights report published in 2017. By providing its technical expertise and original content solutions in a rapidly growing field, Ymagis remains committed to its role as a catalyst of change to the benefit of its partners.
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