Realfiction Holding AB announces its Q2 Interim Report for April – June 2020
The company announces that the Q2 Interim Report for April – June 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 summary of the Q2 Interim Report.
Important key figures:
• 68% decline in total revenue Q2, 2020 compared to Q2, 2019
• 67% decline in gross profit in Q2, 2020 compared to Q2, 2019
• 5% increase (2.9 points) in gross profit margin in Q2, 2020 compared to Q2, 2019
• Net operating cost savings of TSEK 2,255 in Q2, 2020 compared to Q2, 2019
• Net solvency ratio of 68.9% at 30 June 2020 compared to 73.1% at 31 March 2020
During and after the period, Realfiction has experienced both positive and negative development in its business, including:
Project ECHO: We are now focusing on proving and specifying the scalability and manufacturability necessary for a future mass production of this groundbreaking 3D display technology. A one-digit number of sub-projects/modules have been identified that needs to be in place to finalize a complete integration license package that we can offer to LCD and OLED display manufacturers. Certain use-cases may however be prioritized and offered sooner. To complete the sub-projects, we are pursuing collaboration with potential research partners, including a leading international research institute in Organic Electronics. Also, 4 updated patent applications were added to our ECHO IP portfolio in 2020 of now 6 pending patents with more to come.
MaaS for Retail: After the temporary pause of the test launch in 25 EDEKA (Germany’s largest department store company with over 11,000 stores) stores in Germany in the first half of 2020 due to COVID-19, it was restarted in July 2020. We now look forward to receiving more feedback from stakeholders during the remainder of 2020. Campaigns on the 25 displays are fully booked until the end of October, and we have received requests for several of the slots available during the rest of the year. We continue to aim for an up-scaling of the media channel to include additional stores in 2021, and we are also in talks with brand owners on larger commitments in 2021.
Experience (Hardware): Following a substantial drop in hardware sales in Q2, 2020 due to the COVID-19 pandemic, this segment started to show more strength in June and during the summer as promotional events are being rescheduled. This has led to some substantial direct sales orders, and we are hoping that this trend will lead to more business also in additional markets during the autumn. It is obvious that our strong global customer base is intact and waiting for opportunities to use Realfiction hardware again.
CEO Clas Dyrholm comments: “While it is encouraging to see that our MaaS media channel in Germany is back on track, and that we are starting to pick up speed again in our Experience segment (and to some extent also in Maas for Exhibitions), the most substantial progress in Q2, 2020 and during the summer has definitely been achieved in our ECHO development process. I really look forward to soon being able to explain more in detail how ECHO holds the potential to fundamentally change flatscreens, and what we are aiming to achieve in the rest of 2020 and in 2021.”
We highlight the following key figures from the Q2 Interim Report:
Q2 2020 (1 April – 30 June 2020)
• Revenue: TSEK 1,854 (Q2, 2019: TSEK 5,825)
• Gross profit: TSEK 1,067 (Q2, 2019: TSEK 3,189)
• Gross profit margin: 57.6% (Q2, 2019: 54.7%)
• Result after financial items: TSEK -2,592 (Q2, 2019: TSEK -2,875)
• Earnings per share: SEK -0,14 (Q2, 2019: –0.21)
• Cash flow from operating activities: TSEK -259 (Q2, 2019: TSEK -3,011)
H1 2020 (1 January – 30 June 2020)
• Revenue: TSEK 5,393 (H1, 2019: TSEK 12,849)
• Gross profit: TSEK 2,973 (H1, 2019: TSEK 7,131)
• Gross profit margin: 55.1% (H1, 2019: 55.5%)
• Result after financial items: TSEK -5.507 (H1, 2019: TSEK-6,084)
• Earnings per share: SEK -0.33 (H1, 2019: –0.44)
• Cash flow from operating activities: TSEK -1.631 (H1, 2019: TSEK -4,719)
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 08.55 CEST on 27 August 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.
