Immotion Group, the UK-based immersive virtual reality (“VR”) ‘out of home’ entertainment group, would like to update the market in response to the current Covid-19 situation.
17 March 2020 – Trading in a number of our sites has, in the last few days, been significantly impacted as attendances fell and a number of Partners are reducing opening hours, and in some cases closure. As a consequence, the Company will see a substantial reduction in revenue and contribution from these sites, which will, in the short term, affect our ability to reach our targeted monthly breakeven and, if the situation prevails or worsens, is likely to impact significantly on the full year numbers.
New installations are continuing where possible, and whilst Shark Reef Aquarium at Mandalay Bay, Las Vegas is currently closed, the installation of the 36-seat VR theatre currently remains underway.
Demand for our offering from potential Partners remains high, including the new Dinosaur experience, with a number of new Zoo partners wanting installation for the summer.
A significant element of the Company’s revenue is made during the Summer school holidays, therefore on the proviso normal service is resumed by July we would expect to see a quick recovery in trading.
In this challenging period we have started to reduce operating costs, we currently have a healthy cash balance, and we will continue to closely manage cash in anticipation of a return to normality.
Clearly this is a highly dynamic and changing landscape we will keep the market informed as the situation unfolds.
Martin Higginson, Immotion Group plc CEO, said: “We are confident in our business model and demand remains strong but we are, unfortunately to a large extent at the mercy of events.”
“Many of our partners are looking to install in early June for the Summer period. As with many leisure businesses, a significant proportion of our revenues are generated during holiday periods; as such we hope the current situation will, as it is in China, be under greater control by then and some normality will have returned.”