Immotion Group (IMMO) said it expects 2H revenue to materially exceed 1H revenue and to report positive EBITDA in 2H of around £0.9m compared to the £0.033m loss reported in 1H.
In a trading update released today, the UK immersive entertainment company said it expects to report revenue of around £6.5m for 2H21 compared to un-audited revenue of £2.8m in 1H.
The Company said its operating cash flow generation has been ‘strong’ and that, as expected, it anticipates that the business will end the full year with cash balances in excess of £1.0m.
Specifically, the Company said its Location Based Entertainment (LBE) business has seen revenues increase in excess of 70% compared with 1H as almost all locations were reopened following the enforced closures earlier in the year as a result of the pandemic. In particular, the Company was able to benefit from the key summer trading period in the USA and UK.
Addressing shareholders today, the Company reported that 4Q is expected to deliver ‘a very satisfactory contribution’ despite it being the quieter seasonal period with ‘very strong trading’ during the Thanksgiving Holiday period in the US and the UK’s October half term holidays.
Immotion Group told investors that its current trading performance is in line with expectations and that it has not seen any material impact as a result of further UK covid restrictions. It noted that the vast majority of revenue across its LBE business is generated in the USA.
Following the launch of the new Zoo targeted VR experience, ‘Gorilla Trek’ at the IAAPA trade show, in Florida, USA, in November, Immotion has seen considerable interest in this new offering and is in discussions with a number of blue-chip USA zoos for installations in 1H22.
The Company noted that overall levels of enquiries and discussions for both the Aquaria and Zoo offerings remain ‘very encouraging’ for 2022.
Meanwhile, Immotion expects to generate revenue in excess of £2m for 2H across its Home Based Entertainment (HBE) division, almost three times the revenue achieved in 2020 with the key 4Q comparison being an anticipated £1.5m + versus £0.669m, it informed investors.
Specifically, Immotion said the growth in Amazon sales, both in the UK and USA has been considerable, with this channel now making up a significant and growing percentage of sales.
Between July and November 2021, Immotion Group reported sales in excess of 25,000 for its ‘Let’s Explore Oceans Mega Packs’ (and in excess 28,000 in aggregate for the year to-date).
Whilst sales and margin have been considerably impacted by additional costs resulting from the global logistics crisis, Immotion said it feels the demand for ‘in-home’ VR entertainment is still ‘very encouraging’ and that it gives it the confidence to further develop the product range.
Immotion’s new ‘in-home’ offering, ‘Vodiac’, a product specifically designed and priced to appeal to a mass market audience, with less seasonal demand, will be ‘soft’ launched in the coming weeks to its database of circa 40,000 ‘Let’s Explore Oceans’ customers, it noted.
The Vodiac product will include a smartphone-compatible VR headset, seven free VR videos, 20 premium VR videos, and the ability to purchase further premium content from an extensive catalogue of VR videos across seven VR channels. Vodiac will be available to purchase via selected retailers, Amazon and direct from the Company in early February 2022, it explained.
In addition, the Company said it expects Uvisan, the Company’s UV-C disinfection business, to generate revenue of around £400k for 2H, an increase in excess of 400% on last year.
It said this includes a second container of cabinets expected to be on the water to its Australian distributor ‘before year end.’ In addition, Immotion’s order book for 1Q22 has ‘started strongly,’ with orders of circa $350k in sight, including its largest single order ever.
With a three-fold revenue increase, and ‘a strongly profitable 2H’, the Company told investors that it ‘firmly’ believes that this has been ‘a year of significant progress’ for the Company.
Commenting, Martin Higginson, Immotion Group’s CEO said: “With full year revenues expected to top £9m we are pleased to be ending the year with a profitable business, and cash in the bank. The surge in H2 revenues, expected to exceed £6.5m, a circa 230% increase on H1, is testament to the team, their drive and enthusiasm for our offerings.”
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