VIANET GROUP PLC - Full Year Results

Vianet Group PLC reported a resilient full-year performance, delivering continued revenue growth, stronger recurring income, improved profitability, and a robust balance sheet despite challenging macroeconomic conditions. Group revenue increased 1.5% to £15.5 million, while recurring revenue rose to £13.6 million, representing 88% of total revenue. Underlying profit before tax grew 16% to £1.3 million, with margins improving to 8.4%, supported by operational efficiencies and a high-quality SaaS-based business model. The company strengthened its financial position, moving from net debt to a net cash position of £0.44 million and generating £4.0 million of operating cash flow, with 96% EBITDA cash conversion. Vianet’s Smart Machines division expanded its cashless payments estate by 9% to over 26,000 devices, while Hospitality delivered strong growth, increasing turnover by 6% and maintaining recurring revenue above 90%. The group also made significant progress in the United States, reducing losses, securing a major enterprise agreement, and advancing partnerships that support its long-term growth strategy. Management highlighted a healthy order pipeline, increasing opportunities in AI-driven analytics, and expanding data-led solutions across both divisions. Reflecting confidence in future earnings and cash generation, Vianet proposed an 84% increase in its total dividend. Looking ahead, the company remains focused on accelerating growth, expanding recurring revenue streams, investing in innovation and R&D, growing its device footprint, and capitalising on substantial opportunities in the US market, positioning the business for sustainable shareholder value creation and long-term growth.