Realfiction Holding AB announces its Q2 Interim Report for April – June 2021

The company announces that the Q2 Interim Report for April – June 2021 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 [email protected]. Below is a brief summary of the Q2 Interim Report.

Important key figures:
• 8% decline in total revenue Q2, 2021 compared to Q2, 2020
• 22% decline in gross profit in Q2, 2021 compared to Q2, 2020
• 15% decrease (8.7 points) in gross profit margin in Q2, 2021 compared to Q2, 2020
• Cash-based net operating cost savings of TSEK 975 (27%) in Q2, 2021 compared to Q2, 2020
• Solvency ratio of 82.1% at 30 June 2021 compared to 84.0% at 31 December 2020
 

During and after the period, Realfiction has experienced both positive and negative development in its business, including:

Project ECHO: We continue to progress according to plan with the integration license package for our ECHO holographic display technology. In addition to having international research partners, the core Realfiction team is also being expanded in geographic areas with strong commercial display expertise as a part of our efforts to involve leading experts for each part of the project. In parallel with the technical development, we have developed and filed a patent application for a software solution, called “HoloWize”, that can be used to convert 3D films into holographic films. It has the potential to become a future industry standard that will enable a wealth of available content for ECHO TV’s and displays. During the summer, meetings were held with display industry suppliers and consumer electronics companies, with positive and constructive feedback so far. We have also been in touch with large display manufacturers to schedule meetings. A strategic approach is being utilized when involving large industry players, with the aim to gradually ramp up our activity with commercial meetings in the coming quarters.

Magic-as-a-Service for Retail: With COVID-19 restrictions being further reduced, we hope to see further improvements for the market conditions related to our Magic-as-a-Service for Retail segment in the coming quarters. It is however important to understand that there is still a lot of pandemic-related uncertainty in the market. In September, we will meet with our German partner EDEKA to discuss a potential future rollout in their stores. We remain optimistic for the future of this segment, as our leaner go-to-market approach makes it easier to scale things up again when the timing is right.

Magic-as-a-Service for Exhibitions, and Experience (Hardware): These segments continue to develop in a positive direction, with an encouraging number of orders and requests for quotes as the industry is preparing to reinstate its use of physical events in many regions. We are however not yet back to pre-COVID-19 levels. Recent hardware sales include 3 orders with a combined revenue estimated to reach 4.4 MSEK in 2021, as further detailed in the report.

CEO Clas Dyrholm comments: “Following our reduction in number of employees due to a leaner go-to-market approach for our Magic-as-a-Service segments, we are seeing significant improvements in our overall cash-based operating costs in our Q2 2021 and H1 2021 figures. This means that we have successfully repositioned the company to be in sync with our internal goals, as well as the current industry climate in our market segments. I think that this is a great achievement, and the outlook for Realfiction looks bright, especially considering the continued progress within our ECHO development.”
 

We highlight the following key figures from the Q2 Interim Report:

Q2 2021 (1 April – 30 June 2021)
• Revenue: TSEK 1,701 (Q2, 2020: TSEK 1,854)
• Gross profit: TSEK 832 (Q2, 2020: TSEK 1,067)
• Gross profit margin: 48.9% (Q2, 2020:  57.6%)
• Result after financial items: TSEK -3,168 (Q2, 2020: TSEK -2,592)
• Earnings per share: SEK -0.11 (Q2, 2020: –0.14)
• Cash flow from operating activities: TSEK 1,455 (Q2, 2020: TSEK -259)

H1 2021 (1 January – 30 June 2021)
• Revenue: TSEK 3,392 (H1, 2020: TSEK 5,393)
• Gross profit: TSEK 1,708 (H1, 2020: TSEK 2,973)
• Gross profit margin: 50.4% (H1, 2020:  55.1%)
• Result after financial items: TSEK -4,788 (H1, 2020: TSEK -5,507)
• Earnings per share: SEK -0.17 (H1, 2020: –0.33)
• Cash flow from operating activities: TSEK -1,370 (H1, 2020: TSEK -1,631)