Realfiction Holding AB announces its Q3 Interim Report for July – September 2020
The company announces that the Q3 Interim Report for July – September 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 Q3 Interim Report.
Important key figures:
• 53% decline in total revenue in Q3, 2020 compared to Q3, 2019
• 43% decline in gross profit in Q3, 2020 compared to Q3, 2019
• 21% increase (9.7 points) in gross profit margin in Q3, 2020 compared to Q3, 2019
• Net operating cost savings of TSEK 3,362 (50%) in Q3, 2020 compared to Q3, 2019
• Net solvency ratio of 68.1% at 30 September 2020 compared to 62.9% at 30 September 2020
During and after the period, Realfiction has experienced both positive and negative development in its business, including:
Project ECHO: The development of our ECHO 3D display technology continues to progress in a very satisfactory manner. We have recently identified a way to potentially optimize a part of the ECHO technology, paving the way for a more rapid integration with a shorter time to market, a slimmer form factor and cheaper manufacturing for both the LCD and the OLED versions. As we are now entering the completion phase of ECHO, with the aim to finalize an integration license package that will facilitate easy commercialization, the first step is to conduct a feasibility study to pre-validate these new findings. The feasibility study is co-funded by an Innobooster grant from Innovationsfonden in Denmark, and we expect to complete this study in January 2021. During the spring of 2021, it is our goal to invite a strategically selected Asian display manufacturer to participate in the co-development of a central sub-system: the display backplane. This is a natural next step in maturing the technology and bringing it closer to mass production.
MaaS for Retail: With several months of the test launch at 25 EDEKA stores in Germany behind us, we have been able to document a generally positive effect on sales for products featured in the campaigns. This clearly shows that our concept works and delivers value to the customers. For three recently concluded campaigns, we saw significant sales uplifts for all three campaigns in the range of 290% for the least effective and 980% for the most successful. Discussions with EDEKA regarding a potential scale-up to additional stores in 2021 is in process but is slightly delayed due to the ongoing second COVID-19 wave in Europe.
Experience (Hardware): As in Q2 2020, we are seeing much lower sales volumes compared to before the COVID-19 pandemic. There are however some hardware orders coming in, including from customers converting from rental to hardware orders as stated above. Just as for our MaaS for Exhibitions segment, we expect the lower overall sales volumes to continue at least until the spring of 2021.
CEO Clas Dyrholm comments: “The recent discovery of a way to potentially optimize a part of the ECHO technology, paving the way for a more rapid integration with a shorter time to market, a slimmer form factor and cheaper manufacturing for both the LCD and the OLED versions, is really encouraging, and we are now validating these findings together with Aalborg University in a feasibility study, with results expected in January 2021. Another highlight in Q3, 2020 are the strong documented campaign results we have achieved in recent MaaS for Retail campaigns with EDEKA in Germany. This further validates our MaaS for Retail concept, which is promising for the future past COVID-19. In additional to the progress made in these two important business segments, Realfiction has a strong financial position due to cost reductions and a simplified go-to-market model. We have the liquidity necessary to sustain all our business operations, including the development of ECHO, well into 2021, and we expect to complete the process of securing the additional funding required for the ECHO completion phase before the end of 2020.”
We highlight the following key figures from the Q3 Interim Report:
Q3 2020 (1 July – 30 September 2020)
• Revenue: TSEK 2,038 (Q3, 2019: TSEK 4,296)
• Gross profit: TSEK 1,132 (Q3, 2019: TSEK 1,969)
• Gross profit margin: 55.5% (Q3, 2019: 45.8%)
• Result after financial items: TSEK -2,293 (Q3, 2019: TSEK -4,817)
• Earnings per share: SEK -0.12 (Q3, 2019: SEK –0.31)
• Cash flow from operating activities: TSEK -2,873 (Q3, 2019: TSEK -3,942)
Q1-Q3 2020 (1 January – 30 September 2020)
• Revenue: TSEK 7,431 (Q1-Q3, 2019: TSEK 17,145)
• Gross profit: TSEK 4,105 (Q1-Q3, 2019: TSEK 9,100)
• Gross profit margin: 55.2% (Q1-Q3, 2019: 53.1%)
• Result after financial items: TSEK -7,800 (Q1-Q3, 2019: TSEK -10,901)
• Earnings per share: SEK -0.42 (Q1-Q3, 2019: SEK -0.77)
• Cash flow from operating activities: TSEK -2,793 (Q1-Q3, 2019: TSEK -8,661)
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 CET on 19 November 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 Growth Market under the symbol “REALFI”. The share’s ISIN code is SE0009920994.
