Vista Group International Limited (VGL) Earnings Call Transcript & Summary

Good morning, everyone, and thank you for joining us for Vista Group's 2026 Half Year Results Presentation. We'll give the last few participants a moment to join and then we'll get underway. Good morning again. I'm Matt Thompson, CFO of Vista Group, and I'm joined this morning by our CEO, Stuart Dickinson. Thank you for your time today as we take you through our performance for the first half of 2026 and our outlook for the remainder of the year. Before we begin, please note our standard disclaimer. We'll be taking questions at the end of the presentation. [Operator Instructions] Turning to today's agenda. Stuart will start with the highlights of the first half and the strategic progress we've made against the goals that we set out in February. I'll then take you through the financial results in detail. Stuart will then return to cover our industry outlook and our updated guidance for 2026 before we open the floor to your questions. This is an interim result, so we'll keep the formal presentation tight and leave plenty of time for Q&A. With that, I'll hand you over to Stuart to get started.

Thanks, Matt, and good morning, everybody. I hope everybody is well this morning. Just as we get into it, I wanted to go slightly off script a little bit and just comment on the weekend that's still going on in the U.S. And so for those of you who have been out and about this weekend, Spider-Man, a brand-new day, and so the Odyssey have played incredibly well. It looks like over the weekend, Spider-Man will probably end up around USD 355 million for the Domestic Box Office. When we put all of these things together, it will probably be the largest domestic box office weekend that's ever been recorded. And so pretty exciting from a domestic perspective, but also a global perspective as well to see the power of theatrical release and to see people out having a great time at the movies. So let's get into our conversation. Before we get underway with the numbers that underpin the result, I just wanted to highlight the 4 key themes for us, which -- in what has been a really exciting first half. 6 months ago, we noted that '26 would be a year where we would start growing market share. I'm delighted to advise that we've done this in the first half, growing our contracted market share from 46% to 48% globally. We also said that we were seeing substantial demand from our marquee clients. You will see this in the half where several signings have not only derisked our full year site count targets, but they're also filling our pipeline for 2027 and beyond. The third theme is that we've delivered another strong result with key metrics expanding and cash deployed to accelerate our cloud transition growth strategy. And the progress we're making on a day-to-day basis is enhancing the visibility towards our 2030 exit rate aspirations and reducing our execution risk. And finally, on the back of that strong first half and a favorable industry backdrop, we've upgraded our 2026 revenue guidance to between $179 million and $184 million. These are 4 fantastic achievements, and they demonstrate how well the Vista Group team are working together and executing our strategy. So let me turn now to our key financial metrics. Matt will take you through all the details shortly. But overall, from my perspective, this was a really high-quality first half. While there were positives across the board, what really stood out to me were 2 things: the 38% increase in SaaS revenue to over $43 million, which is now more than half of Vista Group's total revenue. And of course, it is this ramp-up in SaaS revenue, which is driving the increase in total revenue, which was up 12%. The second thing I want to point out is that we grew EBITDA by 24%, which is a preview of the kind of operating leverage investors can look forward to over the coming years. For me, though, operationally, this is the slide I'm most proud of in the last 6 months. These 4 wins are the strongest evidence yet that our strategy is working. They demonstrate both the strength of demand we're seeing and the increasing momentum behind our platform. To start with, I want to celebrate an important milestone for us, the resigning of Cinemex from a competing solution. Under the agreement, 312 sites across Mexico and the U.S. will transition to a combination of Vista Classic and data empowerment through '26. On its own, this win increases our contracted enterprise market share by 2 percentage points. More importantly, though, it demonstrates our ability to attract new clients. The project is already well underway with Cinemex's U.S. operations now live. We're also hugely pleased to secure a major operational excellence commitment from Cinepolis in Mexico. At 40 -- sorry, 504 sites, this represents Vista Group's largest single country deployment and accounts for approximately 10% of our contracted enterprise client sites moving to the full platform. Importantly, though, this demonstrates the success of our pilot and then expand strategy. Following a successful deployment of operational excellence across Cinepolis 51 sites Cine Yelmo circuit in Spain, the group has now committed to a significantly broader rollout in its home market. Another way to think about the significance of these 2 wins is that when combined with our other clients in Mexico, Vista has more than 90% enterprise market share. This accounts for more than 95% of the Mexican box office, which is the third largest enterprise cinema market in the world. To continue the momentum, Cineworld has contracted 88 sites in the U.K. to digital enablement. Importantly, Cineworld is part of the wider Regal Entertainment Group, which operates around 500 sites, including 400 sites in the U.S. through Vista Classic. This win follows the successful deployment of Digital Enablement across Regal's 25-site Picturehouse circuit in the U.K. and creates a pathway to a much larger opportunity across the broader Regal estate. And Cineplexx, a leading European circuit has signed a multiyear agreement covering 59 sites to Operational Excellence. Taken together, these are exactly the marquee wins we told you to expect in February, and they give us real confidence. Beyond the individual wins though, let's now look at how conversion progressed during the half. I'll start with a small table on the bottom right. Over the past 6 months, the number of sites live on Vista Cloud Platform increased from 1,557 to 1,646. Our goal remains to reach 2,000 live cloud sites by the end of 2026, and I'm pleased to confirm that we remain on track to achieve that target. However, the more important '26 metric is operational excellence adoption, where we expect operational excellence sites to increase from 724 at the end of '25 to approximately 1,300 by the end of '26. The step change is largely driven by the Cinepolis Mexico agreement, which accounts for 504 sites. Now let's look at the most important number on this slide, our contracted operational excellence backlog shown in the table on the left. Of the 1,808 sites now contracted for operational excellence, 750 are live, leaving more than 1,000 sites contracted but still to be deployed. Put it another way, 37% of our client sites are now contracted to transition to the full operational excellence platform compared with just 17% currently live. This contracted backlog gives us significant confidence as we move into the second half. It materially strengthens revenue visibility, not only through the remainder of '26, but increasingly into '27 as well. Importantly, these figures reflect only contracts already secured today. We expect to continue to add further wins over the next 12 months. Finally, as you can see in the top right-hand corner, our contracted enterprise market share has increased to 48% -- at our full year results, we outlined why we believe that Vista Group is best placed to be an AI winner. Central to that is our competitive moat and the proprietary industry-specific data that generic AI simply cannot access or replicate. I won't repeat all of that today, but I do want to show you the progress we've made this year and what we're continuing to focus on. The key point in this slide is that AI at Vista is not a set of bolt-on features. Our intelligence layer is being woven throughout the platform, underpinned by decades of cinema operations, ticketing, loyalty, payments, marketing, film distribution and guest behavior data flowing through our ecosystem. That intelligence layer is enhancing decision support for our clients across pricing, scheduling, operations and guest engagement. It also delivers automation, optimization and real-time insight at scale and extends the platform's role in our clients' day-to-day operations. If you're following our product development process along, remember to visit our website where the road map is published. AI doesn't just make our offerings better though. It strengthens the economics and defensibility of the whole business. It raises switching costs through deeper workflow integration and data dependency. It supports margin expansion through productivity and operating leverage. It increases our revenue opportunity through wider value solutions and optimizations. It amplifies our data advantage across the platform, and it reinforces our position as mission-critical infrastructure rather than commoditized SaaS. In short, we are best positioned to benefit from AI adoption, not to be disrupted by it. A tangible example of this for us internally is AVO, our third-generation engineering AI agent built on a Vista proprietary model harness, AVO consolidates knowledge across more than 45 of our product repositories. AVO is already helping our teams resolve issues faster, scale expertise across the organization and accelerate software development through engineering support and automation. This is exactly the kind of operational leverage that over time supports both faster delivery and margin expansion. The final highlight I'd like to cover is Vista Payments. You'll remember that this is a growth initiative we launched last year. By embedding a white label payment solution directly into our software, we are now able to offer clients a single vendor relationship, automated reconciliation, guaranteed day settlement and competitive transaction rates. Basically, I can share with you it's off to a great start. By 30 June, the platform was live and transacting with 11 Vista and Veezi clients. So far, we estimate that Vista Payments has contracted more than $2 million of ARR, which is more than 10% of our 2030 [indiscernible] $15 million. And I'll remind everybody, we've really only been going here for 5 months. Based on the momentum we're seeing, we believe the target is increasingly achievable. Overall, we see this as a highly attractive revenue stream. Revenue is reported net of transaction costs and is expected to carry strong incremental margins. For example, at scale, we anticipate only needing a payment team of around 20 people. At our 2030 exit rate aspiration of $15 million ARR, Vista Payments is expected to contribute approximately 3 percentage points towards our 33% to 37% EBITDA margin aspiration. Importantly, though, payments also provides an additional growth lever for us alongside our cloud transition, further diversifying and derisking our path to our long-term ARR objectives. With that, I'm going to hand over to Matt to take you through the financials.

Thank you, Stuart, and good morning again, everyone. As Stuart said, this was a strong first half, and that comes through clearly in the financials. Revenue has increased 12% to $86 million. But most importantly for me, we're starting to see operating leverage with EBITDA growing 24% to $12 million. Continuing down the page, EBITDA margin adjusted for foreign exchange increased by 190 basis points, and I'd encourage you to remember that this has been achieved despite the acceleration we set out to do this year. I'm delighted with these results, most of all because I see them as a validation of our internal modeling and longer-term financial objectives. I'll now take you through a more detailed view of the P&L as there are 3 aspects of this result I'd like to highlight. Firstly, our revenue growth has accelerated for the second consecutive year. What I find interesting with that is that revenue growth has continued to accelerate despite us cycling larger and larger numbers. Secondly, EBITDA margins have also expanded for the second consecutive year. This operating leverage is driven by the scaling of our top line revenue, where we are seeing profit expansion on our fixed cost base. It's also been achieved through our disciplined cost management, which can immediately be seen in our general and administration cost line. The third thing I want to point out on this slide is our well-established second half seasonality for both revenue and EBITDA based on the charts on the right-hand side of the slide. Looking first at revenue. Over the past 2 years, the first half has represented between 46% and 47% of the full year outcome. At the midpoint of our upgraded full year guidance range, the first half revenue represents 48% of projected full year revenue. The same is true for EBITDA. Over the past 2 years, first half EBITDA has represented between 33% and 34% of the full year result. At the midpoint of our upgraded guidance range, first half EBITDA represents approximately 34% of projected FY '26 EBITDA. So while we have increased guidance, the implied second half performance remains consistent with the seasonal patterns we have delivered historically, which gives us confidence in achieving our full year outlook. There are 3 key reasons for the seasonality that we've mentioned. The first is ARR growth through cloud conversions, a greater proportion of revenue is naturally recognized in the second half of the year. The second reason is the box office activity, which is weighted towards the Northern Hemisphere summer, Thanksgiving and Christmas periods, all of which occur in the second half. And finally, from a profitability perspective, annual remuneration reviews take effect in January each year, which creates a natural first half cost weighting. Now to our segmental breakdown where both cinema and film have continued to grow. In our growth engine, cinema, SaaS revenue was up 45% on the first half of last year and driven by 37% of client sites now being on the Vista Cloud platform. Overall, total cinema revenue was up 15% on the prior period. In Film, SaaS revenue grew 9% and recurring revenue grew 3%. Please note that the components of the Poster revenue this year are weighted to the second half, so the film result will be best read on a full year basis. Now to the balance sheet, where earlier in the year, we advised that we expected to use a portion of our debt facilities to support us to accelerate to meet client demand. Given the amount of client signings we announced during the half, I'm confident that demand has now been confirmed. As a result, we closed the half in a net debt position of $5.8 million, which we consider to be working capital level debt. We continue to enjoy strong support from our banking partners. We have a $62 million facility in place through to 2029. Including that facility, we have approximately $56 million of available funding capacity, providing more than sufficient liquidity to support the business and our growth ambitions. Looking at the bottom right of the slide, reassuringly, our cash profile is tracking exactly as outlined in February. We used a modest amount of free cash flow during the half, which I will discuss on the next slide. Most importantly, looking ahead, we remain on track for second half of 2026 and full year 2027 to be broadly free cash flow neutral before returning to both free cash flow positive and net cash positive positions during 2028. Now to looking at the cash flow in more detail. You'll notice that we drew $30 million from our debt facility during the half. During the macroeconomic uncertainty we have experienced since February, we took a prudent approach to liquidity management by drawing the facility and holding these funds on deposit to preserve our financial flexibility. This was an extremely conservative move. And I want to be clear, the debt was not drawn to fund our cloud transition strategy, and we expect to repay it once macroeconomic conditions become more stable. Just so you know, the net cost of maintaining this additional liquidity is less than 2% per annum on the amount we have drawn. Meanwhile, client collections remained strong at 98% of revenue, albeit a touch lighter than prior periods. Operating cash flow of $9.2 million was lower than the reported result in the first half of 2025, but the prior period benefited from a one-off working capital tailwind of $6.8 million. Adjusting for that effect, underlying operating cash flow increased by approximately 25%. Finally, we used $6.8 million of free cash flow in this half. This was a deliberate investment to support our acceleration strategy designed to meet the significant client demand we are experiencing and is consistent with the investment profile that we outlined earlier in the year. For those who wish to delve into the free cash flow calculations in more detail, full reconciliations are available in the appendix. On this slide, I provided a bridge to show you how we have used our cash during the first half. Moving first to the table at the top of the slide. As I mentioned earlier, the first half of 2025 benefited from a one-off $6.8 million working capital tailwind, which you'll see in the second row. Adjusting for that, the like-for-like free cash flow was similar to last year being a $6.9 million outflow compared to $5.8 million in 2025. I now draw your attention to the chart at the bottom of the slide, which shows the changes in free cash flow against the prior period. On the left side of the waterfall chart in dark purple, you can see the cash changes in the underlying business. Together, this box accounts for approximately $3.3 million of incremental cash inflows relating to the underlying business. Revenue, net of variable costs was $5.6 million higher than the same period last year. Meanwhile, we had our remuneration review in the first half and our Vista Client conference, which occurs every other year. Overall, the left side shows that as more clients transition to Vista Cloud, the additional recurring revenue increasingly drops to the bottom line and translates into cash generation. On the right side, which has a lighter purple, we invested $4.4 million directly into accelerating our cloud transition strategy through capitalized development and implementation costs. I view these investments as the seeds of tomorrow's ARR. We incur those one-off costs today before the associated recurring revenue and cash flows are realized in future periods. So it's a classic timing delta between our cash flows and P&L. Put simply, the incremental cash invested during the half was substantially directed towards accelerating future growth. And meanwhile, the underlying business continued to generate increasing cash returns from investments already made. To better illustrate the underlying cash-generating capability of the business, we use an underlying free cash flow measure. This excludes the one-off incremental capitalized development and deferred implementation costs associated with the upfront cloud transition. A full reconciliation of that is also included in the appendix. You should expect to hear us talk increasingly about this metric because it demonstrates the underlying cash-generating power of the business. If we start with the chart on the left, in the first half of 2026, underlying free cash flow was $5.6 million. While this is lower than the $9 million generated in the first half of 2025, it's important to remember that the prior period benefited from a one-off $6.8 million working capital tailwind. Looking ahead, we have advised today that we remain on track to be free cash flow neutral in the second half of 2026. Assuming a similar level of cloud transition investment in the second half, underlying free cash flow is expected to increase to $12.4 million, which is a $2.6 million improvement. Now turning to the chart on the right. In 2025, we generated $18.8 million of underlying free cash flow. In 2026, that figure is expected to be only modestly lower, showing that our acceleration has only had a minimal impact on short-term underlying free cash flow. And again, we've already reached an inflection point with the improvement we expect in the second half. The key point I want to take away from this slide is that every dollar we invest today increases the pace of cloud adoption. This matters because it further derisks our 2030 aspirations and supports a pathway towards $75 million of free cash flows, which is approximately quadruple where underlying free cash flow is today. For my final slide today, I want to reiterate our 2030 exit rate aspirations. Over the next 5 years, we continue to expect to approximately double ARR to $315 million. In addition, we estimate that EBITDA margins can double to between 33% and 37%, while underlying free cash flow quadrupled to around $75 million. These are the same aspirations we shared with you in February. What has changed since then is that we now have more evidence to support the path to achieving them. We've added more cloud sites, signed more enterprise customers, increased our contracted market share and further demonstrated the potential of Vista Payments as an additional growth and margin lever. So while the opportunity remains compelling, the more important point is that the path to achieving it carries less execution risk than it did 6 months ago. Before I wrap up, I want to thank the entire Vista Group team. Together, they have already delivered many of our 2026 objectives, including the marquee client signings, a meaningful increase in contracted market share and the continued development of Vista Payments. So with that, I'll hand you back to Stuart to discuss the outlook.

Thanks, Matt. And let me finish with a few words on the industry backdrop and our updated guidance. You'll see from this slide that the industry backdrop remains encouraging. And as I started the call, some of the things going on are just truly exciting. Domestic box office grew 15% in the first half and is now within 17% of pre-COVID levels. Importantly, this growth has been driven by admissions, which increased approximately 12% year-on-year rather than ticket pricing alone. We're also seeing meaningful investment and capital reinvested into the exhibition industry, providing a strong signal of confidence that our clients and the investment community. For example, AMC has completed 2 capital raisings for approximately USD 350 million, and they've committed up to USD 225 million into theater investment during '26. On top of this, they've just reported their strongest revenue and EBITDA quarter in our 106-year history. Another example of this investment is in the industry is Kinepolis, who has continued to expand through acquisition, adding 27 U.S. sites across Emagine, Showcase Cinema transactions. And finally, IMAX have signed agreements for 42 new systems across 10 countries, including in Australia and New Zealand, reflecting continued investment in premium cinema experiences. All of that content pipeline drives and continues to drive strong, exciting new things. The second half of 2026 is genuinely blockbuster with 6 of the 9 wide releases on the slide being franchise tentpoles whose previous installments collectively generated greater than USD 3 billion at the domestic box office. It's also encouraging to see content creating genuine audience excitement. The Odyssey is a great example where demand for those 70-millimeter IMAX screenings has been so strong that premium format screenings have sold out weeks in advance across major markets worldwide. So that brings me to guidance. On top of the -- on the back of a strong first half, continued cloud transition progress and a favorable currency backdrop, we are upgrading our '26 revenue guidance to between $179 million and $184 million. This is up from the $176 million to $182 million that we had set 6 months ago. We continue to expect EBITDA margin of 18% to 20%, and we expect free cash flows to be neutral in the second half. So a few notes on the assumptions that underpin the guidance. The domestic box office assumption is unchanged at USD 9.75 billion and is roughly in line with U.S.-based industry analyst consensus. The currency assumption has moved down slightly to USD 0.59 back from the USD 0.60 previously assumed. And our cloud transition remains on track for the 1,300 operational excellence and 2,000 digital solutions site targets we set for year-end. And finally, as Matt mentioned before, our 2030 exit rate aspirations are entirely unchanged. Now let me return to the 4 key messages we opened with, which I believe really highlight the strength of the first half performance. We've grown market share. We've secured several marquee client wins. We've materially strengthened growth visibility and reduced execution risk, and we have upgraded our FY '26 revenue guidance. So before we take your questions, I'd like to thank our shareholders for your continued support, our clients for the trust they place in us and our people across Vista Group for their hard work, dedication and commitment. The progress we have delivered in the first half is a direct reflection of their efforts and it positions us really well for the opportunities ahead. Thanks, everybody.

Thanks, Stuart. That concludes our formal presentation, and we'll now move to the Q&A session. [Operator Instructions] The first question comes from Phil Campbell at UBS.

Just in terms of the total site numbers because I think in the past, you had this aspiration of like 6,000 sites Obviously, making some pretty good progress in increasing market share. Is there any risk that we could see that number being higher? Or are you still pretty happy with the 6,000?

Look, I'm still pretty happy with the 6,000. We set that goal a little while ago. We're continuing to track to it. It's something that we talk about very regularly internally. So yes, comfortable with where it's at. Obviously, we want to continue to work towards that as quickly as possible.

Just my second question was on AI. So I suppose there's 2 parts to this question. One is, I suppose, if we looked at the benefits of AI, is there any productivity benefits from a developer point of view where the kind of CapEx envelope you outlined for the migration could be potentially lower than what was guided for? And then I suppose the second part was just, are you seeing any examples at the moment of kind of disruption from AI from a customer perspective?

Yes. So just addressing the first one, I think, there is definitely AI and productivity, what we can do. We're learning every day as is everybody, we're going faster with tools every day, and there's some really exciting enhancements there. I think we're too early yet to see really what the total impact will be of that on our CapEx envelope. What we are very conscious of is that, obviously, AI tokens come with costs. And so we're making sure that we've been very thoughtful around how we deploy it to get the most benefit from it in the organization across our development and also our whole business. So very focused on it, probably still early to tell in terms of what the overall impact will be. but I just see us being able to continue to go faster and build more quality software there as well. So we see -- I see it as a real tailwind for the business. Just in terms of customers and seeing anything, short answer is no. A number of our customers are continuing to experiment with AI internally, mainly around crew training, health and safety, et cetera. And so we're working closely with them on those opportunities a little bit outside the core Vista platform, but it's encouraging to see the clients starting to adopt AI as well. But in terms of people vibe coding versions of Vista, et cetera, we're not seeing any of that, Phil.

Okay. Great. And then just the last one for me was just, I think in the past, you have provided like a [ GTV ] estimate on the platform. This result, you haven't. I'm just wondering what the reason for that is? Or are you going to provide it later on?

Yes. If I'm being honest, we -- it wasn't for any particular reason. Yes, it was more that we had a lot of metrics that we wanted to get out this half, and that was one that we perhaps just didn't have the data just readily available to be able to release at this time. It's something we can go through and calculate for the full year...

That would be great.

I think traditionally, we've released that metric in the construct of particularly of Vista Payments and the opportunity there. And for me, it was really important to just draw everybody's attention to what I think is a super key metric in Vista Payments, which is around the $2 million of ARR. I said before, we're 5 months in, it's incredibly exciting. this opportunity. And so that was the key metric for us, as Matt said, we'll continue to calculate GTV. We'll look to do that as we go through the fall. But yes, there's a lot of momentum in that space.

The next question is from James Lindsay at Forsyth Barr.

Congratulations on a good result and good to see Stuart you're getting the help of Superman as you mentioned.

I'm after Spider-Man, but yes, I know what you mean -- it was a very exciting weekend. I don't know if you were out and about, but there was Spider-Man everywhere.

Yes. Well, certainly seen lots of full cinemas, which is good to see. A quick one just on the site guidance, just with regard to the 504 implementation. Just with the AI question as well, are the risks around sort of bringing implementations like that on board, the timing risk of that sort of lowering now?

I think AI, I guess we're working towards leverage AI across all of our business. And as I talked about the AVO example, which is helping us in support and engineering, et cetera. AI is definitely helping us build more processes across the business, create more automation, et cetera. And so the other thing I'd say specifically about that is we're starting to build now a really good track record of bringing large clients live. And so yes, this will be our largest one, but it's the same sort of process that we move through now with all of our clients. And so I wouldn't say AI is specifically helping us here. But again, as I said before, it just helps reinforce the motions that we're going through across the business and everything we're doing.

And just interested in the capacity as well. Obviously, the teams have got a lot on over the next 6 months as they have on the last 6 months. Just sort of interested around what's the hold up now? Is it customers wanted to sign on or just the implementations team like that you could have more, but it's just slow to get them on and up to speed, et cetera. Just interested in that sort of dynamic.

Yes. So as we said last August when we sort of announced acceleration that we would onboard a number of field engineers or forward deployed team members plus also core sort of project team members. That's largely done now. Obviously, it does take some time to bring everybody up to speed. In terms of the profile of the business and the demand, we've still got -- and I draw just reinforce the backlog slide. So there's about 1,000 operational excellence sites now backlog which is the first time we've given you that metric. For me, it's just a really good demonstration of we're signing and we're continuing to build project deployment road maps. These projects do take some time, so you naturally end up with a backlog from signing through to delivery as well. And so I feel like we're in a pretty good place now. We're going to continue -- we've obviously got our 2030 aspirations out there and a number of sites. So that implies that we have to continue to accelerate. And so we'll keep working on that. But just in terms of the actual people, we're comfortable with what we've done over the first half.

Yes. We'll keep building on those delivery teams as well. I mean if you look at that cost, we deferred $4.2 million in this half. And if you're looking at about $8.5 million for the full year, if you just double it. We've said that we intend to increase that to around $15 million over the coming years. So yes, we're still going to bring on more, but we're pretty happy with what we've done for this year.

And not that anyone can complain with regard to the more recent signings, et cetera. Just note that obviously, the sales and marketing line has increased. Just interested in your sort of thoughts about needing to do more of that marketing versus customers sort of bringing you and saying, when can we convert...

Yes. That line includes $600,000 from VistaCon. So that's our biannual or every other year, we run that client conference where we bring everybody to Auckland and explain everything through. So that one is a little bit not quite like-for-like comparing that in this period. But yes, I mean, I think you'll see leverage start to come through in that line as we go forward. It's an obvious area that we don't need to exactly double down when we've got the strong interest from clients.

And when there is interest now, are you having to talk about sort of like 28 delivery? Or are there still reasonable slots for -- I'd imagine your 1,000 sites is a great number to have out there, and we appreciate it. just obviously, we don't have a time frame for when they are. So just interested, the slots, are you full for '27 implementations?

Look, we're certainly not fully contracted for '27 yet. We do balance this around the world as well. So remember, we've got the project teams in each of the regions, plus also the core engineering team. So a little bit more work to do in terms of contracting '27 and just finalizing the delivery schedule there. So we're talking to each client in a very deliberate way around what are their drivers, when do they need to come and when can we put them in the process as well.

Great. And then a couple just on payments to the end. Just with regard to obviously, 11 customers coming on, that's sort of great progress. And just if you could just give us an idea about how hard that is to do the transfer over and obviously, your full implementation at the moment, probably as Ts-wise. And just how hard is it to transfer over those customers? And could we see quite rapid progression if that is a reasonably easier process relative to the full sort of system switch over?

Yes. So it's definitely an easier process. We can onboard a client to Vista Payments, they could be using Veezi or Vista Classic or also Vista Cloud. We made the decision to create a separate implementation capability for Vista Payments. And so that stood up and working as well. And so we have the ability to bring a client to Vista Payments and sort of not interrupt that core cloud delivery pipeline as well. And so I think you can see from the metrics and the number of clients we've been able to onboard, we definitely can do it faster than the Vista Cloud transition. And so we're going to -- we'll continue to accelerate that.

So could that be -- for people that are interested in it, could that be a lot faster, i.e., like the next 12, 18 months of getting all clients that want to do that? Is it as quick as that?

It could theoretically be. I'm not sure. We obviously want the all clients who are interested to continue to grow. And so we want to continue to do that. It's also -- to a degree, it's a little bit dependent on where the client is in terms of where their payment contract is if they've got an existing payments provider contract that's coming to term or that is for a number of years. We have to balance that as part of this as well. So I'm not going to put a time frame on it, but I'm really excited about the start.

Yes. And it seems to be potentially more of the larger clients interested as well. Is that sort of theme developing as well?