Realfiction sees a noticeable but short-term Coronavirus-related effect on its exhibitions business and no impact on its Project ECHO
Realfiction Holding AB (“Realfiction”) announces that the company is experiencing a noticeable but short-term negative effect on its global Experience (hardware) and Magic-as-a-Service (MaaS) sales related to exhibitions due to events being postponed or cancelled. This effect is so far mitigated by a strong order pipeline, operational cost reductions implemented in late 2019 and progress in the retail space with the German launch of a MaaS Media channel in 25 EDEKA stores in March proceeding as planned. The German MaaS marketing slots are already fully booked until the end of July.
Historically, 30-50 percent of Realfiction’s Experience (hardware) sales have been related to exhibitions or other events. The majority of these orders come from the company’s global partner network. The company has just seen an immediate slow-down in the short-term partner pipeline, and Realfiction is following the situation closely in key regions. So far, the company has received a handful of order cancellations/postponements, and some of them are expected to resurface as new orders later in 2020 or in 2021.
“Realfiction is handling this situation well, as our diversified business segments mitigate the negative impact that the global exhibition industry is hit by. With the added 14.4 MSEK in funding in December 2019, in addition to monthly cost reductions of approximately 350 TSEK, our business is prepared for even an extended Coronavirus period. The adjustment of our MaaS for Exhibitions approach has made it possible to build a strong pipeline of orders in 2020 up until now. Without the new Coronavirus-related effect, the company would have likely seen a steady increase in revenue – both from new customers and repetition customers. If our distributors see an improved situation in a few months, the long-term effect will be minimal as many events and the corresponding orders will move to the autumn of 2020 or the beginning of 2021,” says Realfiction’s CEO Clas Dyrholm.
Realfiction’s MaaS retail segment, as well as the development of its next-generation Project ECHO technology, are not affected by any Coronavirus-related effects and are thus progressing according to plan. This includes the German MaaS retail launch in 25 EDEKA stores in March.
“The upcoming launch of our MaaS Media channel in Germany will give us a glimpse of what this concept can do on a global scale, and so far, it is looking quite promising. And our Project ECHO technology, for which we were able to complete a beta display version in February, is still on track to be presented to leading flat screen industry players in a few months.”
For more information about Realfiction Holding AB, please contact:
Clas Dyrholm, founder and CEO
Telephone: +45 25 22 32 81
Mangold Fondkommission AB is the company's Certified Adviser and can be contacted via firstname.lastname@example.org 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 13.40 CET on 13 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.