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Telecoms

Immotion Group expects to reach monthly break-even in first quarter

The group's 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

Immotion Group PLC (LON:IMMO) 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, 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.

READ: Immotion appoints former Sony director as head of VR experience creation arm

The virtual reality (VR) company said most installations will come from aquaria in the US and Europe as there has been “significant” interest from these venues.

The AIM-listed firm added that it will grow the average partner revenue per headset “strongly”, while there is increased demand from high traffic destinations for large installations.

Initially, Immotion said, it appealed to partners for ancillary revenue from a small footprint of two to four headsets, while now the installed headset base will reach up to eight headsets to meet demand, following a trial at Sea Life London Aquarium.

The first quarter will see the launch of new "edutainment" experiences aimed at family-focused, high traffic destinations such as zoos, science centres and museums, it added.

As of now, the company has a total of 302 headsets, of which 117 are Immotion VR and 185 are partner offerings.

“Q1 2020 should be extremely busy and exciting for the group,” chief executive Martin Higginson said. “We move towards 2020 with growing confidence in our strategy, which is designed to allow us to scale rapidly.”

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