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VR Education forecasts “strong growth” and accelerated adoption of VR in 2020

VRE's CEO David Whelan said the launch of standalone VR headsets such as the Oculus Quest and widespread adoption of 5G will accelerate market expansion

VR Education Holdings PLC - VR Education forecasts “strong growth” and accelerated adoption of VR in 2020

VR Education Holdings PLC (LON:VRE) is forecasting “continued strong growth” and accelerated adoption of virtual reality technology in 2020 as standalone devices and 5G become more widely available.

In a trading update for the year ended 31 December, VRE’s chief executive David Whelan said standalone devices such as the Oculus Quest VR headset, made by Facebook, will result in VR adoption becoming “more mainstream”, and, as such, the firm will see “strong growth of sales” for its showcase experiences as well as accelerated adoption of its ENGAGE platform, which allows users to create their own simulated environments for teaching or demonstrations.

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He added that the company has made “significant progress” during 2019 and laid solid foundations for the year ahead, despite revenues growing at a slower rate than expected.

The firm reported revenue for the period of €1.02mln, up 42% on the prior year, although this was below market expectations and was attributed to the delayed launch and lack of availability of standalone VR headsets incorporating the group’s software.

However, VRE said this shortage has now been resolved and there was a “clear path” for revenue generation both from ENGAGE and its showcase experiences in the current financial year and beyond.

The company’s underlying (EBITDA) loss for the year was cut to €1.49mln from €1.54mln in 2018, an improvement on market expectations, while its €1.29mln cash balance at the end of the year was also ahead of predictions.

"While it is disappointing to not have grown revenues for [2019] at the pace previously forecasted, we have grown in the year and made significant progress which lays solid foundations for further growth in [2020]”, Whelan said.

Quick facts: VR Education Holdings PLC

Price: 14.25 GBX

AIM:VRE
Market: AIM
Market Cap: £34.45 m
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