Film industry software specialist Vista Group is the latest company to tell the NZX today about coronavirus effects on its business, pulling its outlook forecasts and dividend.
Kimbal Riley, chief executive, said Vista had withdrawn its full-year 2020 revenue and EBITDA guidance and had suspended its dividend.
"The rapidly evolving nature of this outbreak and each country's response to it are making it difficult to predict the impact it is likely to have on Vista Group's year-end position. As Vista Group is the largest supplier of software to the global film industry, we are linked to the success of that industry," Riley said.
• Vista shares plunge on downgraded annual revenue growth
• Premium - Continuous Disclosure: Vista Group promises movie magic, A2 Milk in the spotlight, Mainfreight's hard yards
• NZ shares fall as Vista sinks on slowing sales growth
• Vista Group signs deal with Odeon Cinemas Group
That follows announcements from Auckland Airport of a 20 per cent boss and director pay cut and 11cps interim dividend suspension and Fisher & Paykel Healthcare on currency fluctuations.
Vista's Riely said it was worth noting several factors about the sector including that less than 5 per cent of the company's revenue directly came from cinema ticket sales.
Around 60 per cent of group revenue was recurring in its nature and most came from term agreements with its customers.
Several large new software projects were being worked on and that was continuing, Riley said.
Vista China is an associate of Vista Group, meaning the group does not consolidate the Chinese revenue in its financial results.
"We are conscious, however, that the outbreak and the resulting uncertainty around public gatherings, may prove more challenging for our customers. We have excellent customer relationships and we are actively working with them to provide the assistance that we can, including providing a range of products that may benefit their operations during this period."
Riley said that given the unknown duration of the outbreak, the company would focus on making prudent decisions and maintaining its current balance sheet strength.
"In that light, Vista Group is suspending payment of the dividend announced on February 27 until further notice. This decision will be revisited once the trajectory of the COVID-19 outbreak and its impact on the global film industry become clearer," he said.
Vista was to pay a final dividend of 2.1cps.
The key focus over was on the health and wellbeing of its global workforce and working with and supporting all its customers, Riley said.