- Film technology company Vista Group (VGL) is restructuring its core businesses in response to the ongoing COVID-19 pandemic
- The company expects to employ fewer people once the restructuring is complete and has trimmed directors’ remuneration and salaries by 30 per cent
- Its no secret that the global cinema industry has been hit hard by the pandemic and is experiencing extending shutdowns around the world
- By restructuring, Vista hopes to save up roughly NZ$13.5 million (roughly A$12.54 million) annually
- The company’s core businesses include Vista Group, Vista Cinema and Movio – all of which provide services to the cinema industry
- Vista Group is down 1.40 per cent and shares are trading for $1.76 each
Film technology company Vista Group (VGL) is restructuring its core businesses, as the ongoing COVID-19 pandemic continues to impact the cinema industry.
The company has stated that the restructuring effort is likely to employ fewer people. By restructuring, Vista hopes to save up roughly NZ$13.5 million (roughly A$12.54 million) annually.
The core businesses include Vista Group, Vista Cinema, and Movio, which all provide services to the cinema sector. With cinemas experiencing extended shutdowns around the world, the company has been forced to implement more long-term financial maneuverers.
The news comes after the company already implemented broad cost cutting measures earlier in the year. Thus far, the company has raised an additional NZ$65 million (roughly A$60.33 million) to strengthen its cash balance during the difficult period.
Furthermore, the company’s directors and leadership team have taken a 30 per cent cut to renumeration and salaries. Vista Group has also successfully applied for fiscal relief in New Zealand, the U.S. the U.K. and the Netherlands.
However, Vista Group CEO Kimbal Riley said it cannot rely on the relief in the long-term and, therefore, the restructuring is integral for the company to move forward.
“We are operating in a situation where we do not know when our customers will be able to reopen in a meaningful way. This has had, and continues to have, a significant impact on their businesses and therefore ours.
“We have therefore taken the decision to implement a restructure of all our core businesses in all our offices. Whilst this will have a significant impact on a number of people, we will ensure everyone is treated with the utmost respect and given appropriate support,” he said.
Vista Group is down 1.40 per cent and shares are trading for $1.76 each at 10:11 am AEST.