The AIM-listed company, which makes immersive VR ‘pods’ and the content that goes with them, ploughed money into opening new ImmotionVR arcades and developing games and experiences in 2018.
It has also been working hard to secure revenue-share agreements with casino, attraction and shopping centre owners.
From a standing start, Immotion now has 11 arcades in the UK and US, while its pods can also be found in Rank casinos, Intu shopping malls and Merlin’s Sea Life and Legoland attractions.
It now has 214 installed headsets – which can generate upwards of £400 a week – and that figure will continue to rise as it opens more concessions in Merlin’s estate, while a deal with Middle Eastern shopping mall giant Al Hokair is set to start later this month with the opening of the first site.
More ImmotionVR centres are slated to open as well, with bosses “selectively” choosing key cities to move into.
Focused on breakeven
The heavy initial investment paid off in the second half of 2018, when revenue from VR operations swelled to more than £1mln, up from just over £100,000 in the opening six months of the year.
For 2018 as a whole, revenue from VR operations soared to £1.3mln, while total revenue, which includes discontinued operations and non-VR sales, rose to £2.9mln.
Unsurprisingly, the investment did dent the bottom line and Immotion posted an underlying EBITDA loss of £2.22mln for 2018.
“The group is now focused on achieving significant growth in scale of revenue to drive towards break even,” read Wednesday’s results statement.
‘Year of investment’
“I am pleased with the progress made to date. 2018 was very much a year of investment,” said chief executive Martin Higginson.
“Having made the significant investment throughout 2018 in content creation, equipment sourcing, and establishing concession relationships, the group is now looking to significantly reduce its cost base and reduce cash outflow from operations.
“As we move into 2019, we will begin to capitalise on the heavy investment of 2018 to propel the group to the next stage of its development.”
In early afternoon trading, Immotion shares were 4% higher at 5.25p.
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