Realfiction Holding AB announces its Year-End Report
The company announces that the Year-End Report for January – December 2019 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 Year-End Report.
Important key figures:
• 28% decline in total revenue Q4, 2019 compared to Q4, 2018
• 26% decline in gross profit in Q4, 2019 compared to Q4, 2018
• 2% increase (1 point) in gross profit margin in Q4, 2019 compared to Q4, 2018
• Solvency ratio of 74.7% at 31 December 2019 compared to 22.5% at 31 December 2018
During and after the period, Realfiction has experienced both positive and negative development in its business, including:
Project ECHO: In Q4 we were able to announce several positive achievements related to our ECHO development. This included a grant award from Innovation Fund Denmark, and the announcement that our ECHO technology can integrate into TV sets to drastically reduce their power consumption. We also received positive outcomes from the novelty searches carried out as a part of the patentability investigation. The ECHO development program is progressing well and according to plan, and we look forward to presenting display-based prototypes to selected industry players in the near future.
MaaS for Retail: Towards the end of 2019, we winded down the cooperation with Bilka. A cooperation that provided great learnings that will contribute to how we approach new markets. We are receiving interest from new and much larger international retailers, exemplified by the cooperation with German giant EDEKA, which substantiates the large potential of our improved model. This successful test launch is currently paused due to EDEKA focusing its personnel resources on its core business until the coronavirus situation stabilizes. With strong initial brand feedback and the orderbook for new campaigns being full up until August, we expect to be able to resume this launch where we left off.
MaaS for Exhibitions: As expected, we are seeing several of our customers in this segment coming back for their second and third event. This is a solid proof that the quality and service we deliver also manifests as positive results at the show for them, and that our solutions offer a great way to communicate and visualize their messages. We can also clearly see in our profit margin that the growing attribution from this segment is a healthy addition to our balance.
Experience (Hardware sales): The performance of our Experience business has clearly suffered from our strong focus on ECHO and MaaS in 2019. We do however still have many great reseller partnerships as well as new and promising resellers joining our network. In times like this it is also a considerable strength that our international partner network covers several geographical regions, and that their customer base is heavily diversified between different verticals. We are still getting orders in the 300-500 TSEK range with deliveries in the coming months.
CEO Clas Dyrholm comments: “In these turbulent times I want to express my humble thanks and appreciation to our investors for their continued confidence in our abilities and potential. We are truly grateful for your support, and we are working as hard as ever to reach our goals. With the measures taken, we expect to have sufficient liquidity into 2021, even in the event of a prolonged negative impact from the coronavirus situation.”
We highlight the following key figures from the Year-End Report:
Q4 2019 (1 October – 30 December 2019)
• Revenue totaled TSEK 4,212 (Q4 2018: TSEK 5,819)
• Gross profit totaled TSEK 2,267 (Q4 2018: TSEK 3,064)
• Gross profit margin was 53.8% (Q4 2018: 52.7%)
• Result after financial items amounted to TSEK -3,891 (Q4 2018: TSEK-3,389)
• Earnings per share SEK –0.26 (Q4 2018: -0.26)
• Cash flow from operating activities was TSEK -2,350 (Q4 2018: TSEK -327)
Q1-Q4 2019 (1 January – 31 December 2019)
• Revenue totaled TSEK 21,357 (2018: TSEK 23,799)
• Gross profit totaled TSEK 11,367 (2018: TSEK 11,370)
• Gross profit margin was 53.2% (2018: 47.8%)
• Result after financial items amounted to TSEK -14,792 (2018: TSEK -12,733)
• Earnings per share SEK –1.04 (2018: –1.01)
• Cash flow from operating activities was TSEK -11,013 (2018: TSEK -14,323)
For more information about Realfiction Holding AB, please contact:
Clas Dyrholm, founder and CEO
Telephone: +45 25 22 32 81
Email: clas@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 8.45 CET on 26 March 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.
