Global Box Office Rebounds Set to Boost New Zealand’s Best Stock
(Bloomberg) -- The return of moviegoers and big-screen blockbusters could fuel further gains for New Zealand’s top-performing stock.
Shares of Vista Group International Ltd., which makes software for the film industry, have jumped 38% so far this year amid a global rotation into reopening plays. Those gains could be extended as Covid-19 vaccines help theaters resume ticket sales ahead of several high-budget film releases expected over the coming months.
“As cinema attendance recovers, Vista’s clients will be in a significantly better financial position, allowing them to resume expenditure on areas like software,” said Wassim Kisirwani, an analyst at Jarden Securities Ltd.
About 62% of Vista’s revenue comes from the U.S. and the U.K., according to data compiled by Bloomberg. Cineworld Group Plc, the world’s second-biggest cinema chain, said it plans to re-open its British theaters in May, in line with government rules, and some U.S. theaters over the coming weeks. AMC Entertainment Holdings Inc., the world’s largest theater operator, opened most of its locations earlier this year.
Still, some studios are pushing back key releases as they wait for more cinemas to reopen, which could delay any benefits for Vista Group. ViacomCBS Inc.’s Paramount Pictures postponed its film “Top Gun: Maverick” to November, while Walt Disney Co. plans to release Marvel’s “Black Widow” in cinemas and on its Disney+ streaming service in July after multiple calendar reshuffles.
©2021 Bloomberg L.P.