As we move closer to EBITDA breakeven, this tipping-point business is poised for substantial growth
Martin Higginson, chief executive
What it does
Customers can put on one of the Immotion headsets, sit in a pod or a racing car, for example, and take in experiences which range from rollercoaster rides to supercar racing right through to fighting alien invaders in space.
The company also has an ‘edutainment’ – education and entertainment combined – division. York Museum, for example, used Immotion for its Jurassic exhibition and Sir David Attenborough opened the event feeding a dinosaur in virtual reality.
It has signed revenue-share agreements with a host of household names, such as Grosvenor Casino operator Rank, Thorpe Park parent Merlin Entertainment, The O2 Arena and Gravity trampoline parks.
Immotion puts its products in their sites and splits the revenue they generate, which can be upwards of £400 per headset per week.
It also sells its products outright to private buyers, operates in its arcades and licenses out its content and experiences to other companies.
How it’s doing
Revenues for the six months ending 30 June rose to £1.3mln from £547,000 in the prior year, while pre-tax losses rose to £2.6mln from £1.48mln.
Immotion highlighted strong trading over the summer period, reporting revenues across July and August of £900,000, adding that its average revenue per headset had been “very encouraging” at £381 across the eight months to the end of August.
The group repeated its target of 1,000 headsets installed by the end of 2020.
New business in the second half of the year has included deals with numerous aquariums notably four headsets at the Dubai Aquarium and two sites in Texas.
In October, Immotion installed its first pod in a park run Spanish leisure group Aspro Parks.
The Blue Planet Aquarium in Cheshire is one of 68 locations run by Aspro across Europe.
What the boss says
In July’s strategy update, chief executive Martin Higginson said: "Since inception we have invested heavily in building a range of VR experiences, the quality of which has not been seen before at affordable price points in the 'out-of-home' VR market.
“This fact, combined with our proprietary reporting software, themed stands and on-going investment in VR motion platforms has positioned us well in this nascent market."
He said demand from aquaria partners was particularly strong and the company see this as a “highly scalable, potentially global opportunity”.
- More aquarium deals as Immotion's product proves itself
- HIts the target of 1,000 headsets by 2020
- Virtual reality momentum builds with next generation of hardware and software