Immotion Group (AIM:IMMO.L), the UK-based immersive virtual reality (“VR”) out-of-home entertainment business, is pleased to announce, in line with market expectations, its audited final results for the year ended 31 December 2018 and an update on trading and strategy. Having invested heavily in 2018 we are now starting to see the results of our investment. Since year end the Group has signed two Content licensing deals, and has seen strong trading especially across its Concession Partners, and its own ImmotionVR stores. The recent fund raise will allow the Group to continue investing in growth as it begins to build on the foundations created in 2018.
Financial Highlights – 2018
- Total revenue £2.9m
- Revenue from continuing operations £1.9m
- VR revenue increased twelve-fold in H2 to £1.2m
- Total revenue from VR operations £1.3m
- Total underlying EBITDA1 loss £2.2m
- Total underlying loss2 before tax £2.9m
- Total underlying loss2 per share 1.71p
Operational Highlights – 2018
- Placing to raise £4.8m net proceeds and admission to the AIM market of the London Stock Exchange completed on 12 July 2018
- Creation of 12 proprietary VR experiences and Content Management System
- Developed first recognisable VR retail brand in UK with multiple sites and formats
- Successfully opened 10 ImmotionVR centres (11 trading at end of the period)
- Initial concession agreement secured with major partners such as Merlin Entertainments plc
- VR equipment sales revenue £0.5m in the period
Post period end highlights
- Further placing raising £3.1m net of costs completed on 5 March 2019
- Third party monetisation of content, with first two licensing deals signed in January 2019
- Early 2019 trading in ImmotionVR centres encouraging, especially with the February half-term holiday week
- Strong trading in key concession partner sites, with new Legoland Discovery Centre installations achieving sales well above management expectations
- First SEA LIFE centre installation expected April 2019
- Launch of “Swimming with Humpbacks” immersive experience – a world first
Sir Robin Miller, Chairman of Immotion Group, said:
“Immotion Group is quickly becoming a major player in the exciting world of Virtual Reality. Since flotation, the Group has secured partnerships with some serious entertainment businesses, including Merlin, the largest entertainment business in the world after Disney.
“The approach of creating cutting edge VR content, and blending this with cost effective motion platforms, has given the Group the ability to deliver a suite of immersive experiences at an affordable end price. The price paid by the end consumer is a vital ingredient in the long-term success of any business. Being able to achieve this, and deliver a sustainable margin is a credit to the team.
“We are thrilled at the recent content licensing deals, along with the sales performance of both our concession partners, and our ImmotionVR centres. We continue to hone our sales strategy and are excited at the upcoming launch of our ‘attendant free’ VR booth.
“We are very encouraged by the opportunities in front of us and we firmly believe that 2019 will be an exciting year for Immotion Group. We are very much focused on the delivery of revenue and profit and will continue to learn and adapt as the Group grows.”
Martin Higginson, CEO of Immotion Group, said:
“I am pleased with the progress made to date. 2018 was very much a year of investment. In order to establish ourselves as a serious player, we needed to create a range of VR experiences as well as source a range of VR platforms on which these experiences could operate. There are many players, including some of the largest companies in the world, operating in the VR space and whilst Immotion Group is a relatively new entrant in this landscape, it has quickly established itself as a serious contender.
“Our ability to produce amazing VR experiences has given us the ability to secure partnership relationships with a number of leading entertainment companies, including Merlin. This is a credit to our respective teams. Understanding the end customer’s needs has seen the development of our Blue Ocean series of VR content, including ‘Swimming with Humpbacks’. This has allowed us to extend our relationship with Merlin through their SEA LIFE centres, as well as giving us the opportunity to deliver a new ancillary revenue generator to aquariums, zoos and museums.
“An encouraging start to trading with both our own ImmotionVR centres and our concession partners has given us confidence in the potential of the concessions model as well as the appetite to look selectively for new sites.
“As one of the few VR companies actually generating revenues, we are genuinely enthused at the growth we are achieving. Our team continue to deliver amazing results, whether it’s creating new experiences, signing up new partners or opening new stores, they are a credit to the Group and themselves. I thank them for their continued hard work and belief in our goals.”