Press Releases

Vue International is today pleased to announce key earnings highlights from its results to 28 August 2014 and provide supplemental information relating to the acquisition of the Space Entertainment S.p.A.

In the quarter all Major Markets were impacted by the Football World Cup, however Vue continued to benefit from international diversification: market attendance declined by only 4.6% and 3.2% in Germany and Poland respectively compared to 9.2% in the UK, Vue’s most significant market.

  • The reduction in admissions resulted in a Major Markets GBOR decline from Q3 2013 to Q3 2014 of 6.4% however cost and capital expenditure control initiatives resulted in LTM net leverage increasing only marginally - from 5.6x at 29 May 2014 to 5.8x at 28 August 2014.
  • Movement in net leverage was a combination of:
  • Decline in LTM EBITDA(2) of 4.4% from £93m in Q2 2014 to £88.9m in Q3 2014; and,
  • A £2m decrease in external net debt, from £517.8m at 29 May 2014 to £515.8m at 28 August 2014.

Supplemental Information Relating to the Acquisition of The Space Entertainment S.p.A.

Further to the announcement on Thursday 16th October 2014 of its agreement to acquire The Space Entertainment S.p.A. ("Space"), Vue confirms initial consideration for the acquisition will be ca. €118.5m before fees and expenses:

  • The acquisition will be financed with a combination of committed bank financing and reinvestment of the existing Bridge Loans from Vue's financial shareholders OMERS Private Equity and AIMCo, in the form of subordinated non-cash pay loan notes.
  • Bank financing of €70m has been provided to support the acquisition pursuant to the terms of VUE's existing indenture governing its 7.875% Senior Secured Notes due 2020 and its Floating Rate Senior Secured Notes due 2020.
  • As part of the transaction there may be a drawing under Vue’s revolving credit facility to manage seasonal working capital requirements.
  • Based upon the sources of financing above and Vue’s estimate of Space LTM EBITDA to 30 June 2014, the acquisition of Space will be a leverage neutral transaction pro-forma for Vue’s net leverage as at 28 Aug 2014.

Further information on the acquisition of Space and full earnings commentary will be discussed during the conference call to present our Q3 results on Wednesday 22 October 2014, details of which are available on the Vue Investor Relations website.


(1) The financial data in this press release are extracted from the consolidated financial statements of Vougeot Bidco plc and its subsidiaries. The summary financial information provided has been derived from our records for the accounting periods to 28 August 2014, which are maintained in accordance with UK GAAP

(2) EBITDA is non-UK GAAP information and represents earnings, before interest, tax, depreciation, amortisation and one-off exceptional and strategic items as defined in the Vougeot Bidco plc Indenture dated 18 Jul 2013. Management believes that Consolidated EBITDA is meaningful for investors because it provides an analysis of our operating results, profitability and ability to service debt and because Consolidated EBITDA is used by our chief operating decision makers to track our business evolution, establish operational and strategic targets and make important business decisions.