Realfiction updates its guidance and pauses its test launch of MaaS for Retail in Germany due to the coronavirus situation
Realfiction Holding AB (“Realfiction”) announces that the company has a strong financial position and expects to have the liquidity necessary to sustain all its business operations, including the development of ECHO, into 2021. However, due to the current uncertainty, the company can no longer be certain that it will reach breakeven for its sales activities in 2020 as previously stated, and the company will not provide any new financial guidance until the coronavirus situation stabilizes.
Realfiction was able to strengthen its financial situation significantly in Q4 2019, with 14.4 MSEK in added financing and monthly operational cost reductions of 350 TSEK implemented from adopting a lean strategy in its Magic-as-a-Service (MaaS) for Retail segment. Additionally, the company has been able to further decrease its operational costs by adjusting its teams connected to its MaaS for Retail in the Nordic region and MaaS for Exhibitions segments with a permanent reduction of 2 employees and a further reduction of 4 employees for a limited time period. This will also allow the company to pursue coronavirus-related governmental aid in Denmark. These reductions will not affect Realfiction’s international MaaS for Retail segment as the company is using external partners to a large extent for the ongoing work and administration of its international projects.
In its international MaaS for Retail segment, Realfiction pauses its ongoing test launch of a MaaS Media Channel in Germany at 25 EDEKA stores that was successfully initiated in March 2020. This is due to a decision from EDEKA to focus its personnel resources on its core business until the coronavirus situation stabilizes. Both parties look forward to continuing the collaboration as the first campaign is going well, and the orderbook for new campaigns is full up until August. Realfiction has reason to believe that the brands that have booked campaigns in the following weeks will agree to re-schedule their campaigns when possible. The company expects the brands to fully understand that EDEKA will need to focus on their primary mission to provide groceries to Germans for the time being. Due to the German MaaS Media Channel launch being a limited test launch, combined with a strong demand from brand owners, Realfiction expects negligible short-term effects and no long-term effects from the pausing of these business activities.
“Realfiction stands strong even in these times of historical levels of uncertainty. We have a strong liquidity position, strict control over our operational costs, and our well-diversified rental and hardware sales segments are holding up well considering the circumstances with a limited slowdown. We are still receiving orders in the 300-500 TSEK range with delivery in the coming months. Additionally, we are expecting a rebound in our MaaS for Exhibitions segment when the situation stabilizes as many events have been postponed rather than cancelled, and our customers are still committed to using our solutions. And crucially, our ECHO development continues to progress well and according to plan. We will continue to keep working hard also during this time, while upholding our responsibility as a concerned part of our global society in a time when we all need to look out for each other,” says Realfiction’s CEO Clas Dyrholm.
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 8.40 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.