Realfiction Holding AB announces its Q1 Interim Report for January – March 2020
The company announces that the Q1 Interim Report for January – March 2020 is now available. The full report is attached as a separate document and can also be downloaded from the company’s website (www.realfiction.com). A printed copy can be ordered via investor@realfiction.com. Below is a brief summary of the Q1 Interim Report.
Important key figures:
• 50% decline in total revenue Q1, 2020 compared to Q1, 2019
• 52% decline in gross profit in Q1, 2020 compared to Q1, 2019
• 4% decrease (2.2 points) in gross profit margin in Q1, 2020 compared to Q1, 2019
• Solvency ratio of 73.1% at 31 March 2020 compared to 74.7% at 31 December 2019
During and after the period, Realfiction has experienced both positive and negative development in its business, including:
Project ECHO: In Q1, 2020, we were able to complete a beta version of an LCD display with built-in ECHO technology. It represents a major milestone for Realfiction, as it is now possible for potential industry partners to experience this groundbreaking Mixed Reality technology first-hand. The beta display is also great news from a go-to-market perspective: by presenting ECHO as a way to supercharge upcoming iterations of existing LCD displays/TVs, rather than an opportunity to build an entirely new display technology from scratch, a collaboration with us becomes much more appealing in the short to midterm perspective.
MaaS for Retail: With the Q1, 2020 test launch of our first Magic-as-a-Service (MaaS) Media channel in Germany together with EDEKA, the largest German supermarket corporation with more than 11.000 stores, we took an important step towards our aim to scale the concept to larger markets and customers. The first EDEKA campaign was successful, and our order books were full all the way throughout August. The project was then paused due to the COVID-19 pandemic, but now that the world is gradually opening up again, EDEKA has contacted us to discuss when to resume the test launch. This is great news as we are eager to further evaluate our updated MaaS for Retail concept together with EDEKA.
MaaS for Exhibitions: We saw an impact of the COVID-19 pandemic in our MaaS for Exhibitions segment already in the beginning of the year, as many international markets started to close down earlier than the Danish and Swedish markets. However, we are starting to see positive signs of improvements for this segment at the time of publishing this report. Even though there is still a lot of uncertainty in the market, we are hoping for a gradual recovery in the following quarters.
CEO Clas Dyrholm comments: “Even though our Q1 financial result was impacted by the COVID-19 situation, we have been able to successfully implement measures to reduce our operational costs, while also diverting even more energy into our ECHO development project. This has led to strong progress so far in 2020, and with encouraging signs from our global partners and direct customers starting to come in, I feel truly optimistic for the future of Realfiction.”
We highlight the following key figures from the Q1 Interim Report:
• Revenue: TSEK 3,539 (Q1, 2019: TSEK 7,024)
• Gross profit: TSEK 1,906 (Q1, 2019: TSEK 3,942)
• Gross profit margin: 53.9% (Q1, 2019: 56.1%)
• Result after financial items: TSEK -2,915 (Q1, 2019: TSEK -3,209)
• Earnings per share: SEK -0.16 (Q1, 2019: –0.24)
• Cash flow from operating activities: TSEK -1,373 (Q1, 2019: TSEK -1,706)
For more information about Realfiction Holding AB, please contact:
Clas Dyrholm, founder and CEO
Telephone: +45 25 22 32 81
Email: clas@realfiction.com
www.realfiction.com
Certified Adviser
Mangold Fondkommission AB is the company's Certified Adviser and can be contacted via ca@mangold.se or +46 8 503 015 50.
This information is information that Realfiction Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CEST on 28 May 2020.
About Realfiction Holding AB
Founded in Denmark in 2008, Realfiction is a leading innovator and provider of Mixed Reality solutions and services, a market estimated to reach USD 80 billion by 2025. Realfiction continues to invent technologies within Mixed Reality, with an intention to disrupt the industry by pursuing the vision of converting science fiction into real fiction. Realfiction Holding AB’s share is publicly traded on Nasdaq Stockholm First North under the symbol “REALFI”. The share’s ISIN code is SE0009920994.
