2017 marked a turning point in Ymagis’ development.
In the four years after our initial public offering (IPO), we have focused on implementing the strategy unveiled in 2017: preparing for the Group’s transformation against the backdrop of plans to phase out the VPF business.
In line with this strategy, our active external and organic growth policy has enabled us to build up two major business divisions serving cinema owners on the one hand, and on the other, content owners, broadcasters, distributors, producers and catalogue owners.
Ymagis is now capitalizing on these two strong pillars to drive its growth moving forward. In 2017, we proved the relevance of our strategy, primarily centered around international development and innovation. The Group has further strengthened its geographical reach, signing contracts in Germany and Norway, acquiring profitable businesses in Italy, and setting up joint ventures in the United States and Turkey.
Alongside this, the successful launch of our EclairPlay content delivery platform, rapid deployment of our EclairColor HDR technology in Europe, inauguration of our first Sphera premium cinema in Athens and rollout of our EclairGame concept for gaming championships in cinemas all highlight the ability of Ymagis’ men and women to build the Group’s future through innovation.
Our results also reflect the strong position established by our Group, which has stabilized its revenues at around €180m, with an operating margin of 4.2%, despite the significant contraction in the VPF business and our ramping up of research and development.
We have achieved the objectives defined in our Perform strategic plan for 2017, and we will build on the progress made with our results across our various business lines in 2018, while continuing to scale back the VPF business. We are looking ahead to 2018-2019 with optimism with promising commercial developments in the pipeline for the Middle East and Africa, the prospect of a more widespread roll out of our EclairColor technological standard and various in-house innovations, and lastly, the launch of our virtual reality range, aiming in particular to further strengthen our partnerships with cinema owners. Our mission remains the same: accelerating change to offer the best solutions to our partners.
Our objective also remains unchanged: ensuring the successful implementation of our Perform plan.
The Perform strategic plan became operational in 2017 and focuses on three axes:
- Rationalize our centralized and transversal organization
- Develop strong innovation program (R&D represents 1% of the Group’s annual revenue)
- Create and market high-value added services
The corporate goal is to maintain the top line organically without VPF business and improve the profitability of our two main business units – CinemaNext and Eclair. Five objectives have been set up:
- Compound Annual Growth Rate (CAGR) for Eclair and CinemaNext superior to 10% between 2016 and 2020
- CinemaNext market share to increase from 20 to 30% by 2020
- Digital transformation of Eclair's services with the development of online and fully-integrated platforms
- Eclair’s positive Earnings Before Taxes (EBT) before end of 2018
- Expected operational margin above 5% by 2020 for both CinemaNext and Eclair