Vista Group International lifted first-half profit by 34 per cent as recurring revenue rose and the cinema software firm continued with its international expansion.
Net profit rose to $3.6 million in the six months ended June 30, from $2.7m a year earlier, the Auckland-based company's accounts show. Earnings before interest, tax, depreciation and amortisation lifted 74 per cent to $10.3m on a 23 per cent rise in revenue to $50.1m.
The company said the strong result "supports the full year growth projection for FY2017 of 20 per cent plus", though it said the second half skew of revenue was unlikely to be as pronounced as in the past. Recurring revenue increased 27 per cent to $29.4m compared to the first half of 2016, and now represents 59 per cent of its total revenue, Vista said.
The cinema software firm has been bolting on new acquisitions since it went public in 2014. Last year, it bought half of London-based marketing firm Powster, half of Dutch software developer Share Dimension, and 100 per cent of movie information website flicks.co.nz. It also embarked on a joint venture with China's Beijing Weying Technology Co (WePiao), whose backers include the Wechat/Tencent Group.
Last week, Vista announced it had bought a 60 per cent stake in Mexico's Senda Direccion Tecnologica, giving it control of the Latin American reseller of the cinema analytics firm's services.
"The pipeline for future revenue remains solid," it said today, with expected growth from Movio and Powster as well as international growth from Vista China. "Further acquisition opportunities will continue to be explored. We continue to be confident in our ability to execute on our growth strategy."
The board declared a 2.4 cent interim dividend, with a September 8 date, payable on September 22.
The shares last traded at $5.50, and have fallen 1.8 per cent this year.