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.
Looking ahead, Immotion said it expects a “significant” boost in new installation activity in 2020 that is set to deliver monthly underlying earnings (EBITDA) at break-even in the first quarter.
In a trading update in December, the firm said its full-year underlying EBITDA loss is estimated to be in line with expectations, with revenue to come in at between £3.6mln and £3.8mln.
The company has also confirmed the installation of 93 of its virtual reality headsets in the first quarter of 2020 after signing contracts with a number of attractions and venues.
The firm has signed contracts in the with the London Eye, four aquariums and a European zoo and has agreed terms with a further nine aquariums and five entertainment sites.
It has also inked a revenue-sharing deal with the MGM Mandalay Bay resort and casino in Las Vegas and raised gross proceeds of £2.85mln from an "oversubscribed" fundraising in January.
What the boss says
“We continue to see strong demand for our core offering, which now includes a fully integrated immersive exhibition solution: - a combination of immersive, and interactive experiences alongside a larger cinematic VR Theatre. This new offering, along with our existing smaller footprint installations, gives us the ability to serve both our existing Partner base, as well as the growing trend of partners wanting larger installations”, said Immotion chief executive Martin Higginson.
“It has always been our intention, based on solid financial data to scale the business rapidly and to that end we have decided to undertake the placing so that we can maintain momentum. We are looking forward to the rest of 2020 with considerable enthusiasm", he added.
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