VR Education forecasts strong growth for 2020
David Whelan, CEO of VR Education said the group expected "continued strong growth" and wider adoption of VR technology in 2020.
“We are confident that 2020 will see an increase in demand for immersive experiences,” he said, anticipating “strong” sales growth for the group’s VR showcase experiences and ENGAGE platform.
The education-focused VR group recorded reduced EBITDA from €1.54 million to €1.49 million, as well as a €1.29 million cash balance, both above market expectations, in its trading update for the year ended 31 December 2019.
Whilst the firm recorded a 42% revenue increase for FY19, they identified the figure as below market expectations, with the shortfall due to a delayed launch and low availability of headsets from the group’s hardware providers.
The company added, however, that supply chain issues had since been resolved to create 'a clear path' for further revenue as the group expands its supplier base to include brands such as Facebook, HTC and Deutsche Telekom.
Whelan acknowledged that VR adoption was becoming “more mainstream” with an accelerated adoption of new VR devices including Facebook’s Oculus Quest and Sony’s PlayStation VR headset.
The roll-out of 5G will also mean wider availability of the technology, the statement added, with more telecom companies looking to incorporate VR devices within their services.
The group has already agreed with Deutsche Telekom to release ENGAGE on its new VR device for 2020 as an offering to its new 5G customers.
In addition, the group’s VR showcase experiences sold strongly during 2019 after an agreement with the US Rocket and Space Centre opened a new revenue stream, the statement added.
"While it is disappointing to not have grown revenues for FY19 at the pace previously forecasted, we have grown in the year and made significant progress which lays solid foundations for further growth in FY20," said Whelan.
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