Vividthree Holdings Ltd. (SGX: OMK), a virtual reality, visual effects and computer-generated imagery production studio ("Vividthree", the "Company" or the "Group") today announced its financial results for the second quarter ended 30 September 2019 ("2QFY2020") and half year ended 30 September 2019 ("1HFY2020").
In 2QFY2020, the Group recorded a revenue increase of $1.15 million or 170.8 per cent to $1.82 million from $0.67 million in its corresponding quarter. This is largely contributed from the completion of post-production works in its Post-production segment such as Visual Effects ("VFX") and Computer-Generating Imagery ("CGI") for film producers.
The Group's administrative expenses for 2QFY2020 decreased by $0.08 million or 9.9 per cent to $0.72 million from $0.80 million in 2QFY2019. The Group's administrative expenses remained fairly consistent as compared to the last corresponding quarter except for the one-off initial public offering ("IPO") costs amounting to $0.17 million in 2QFY2019.
In tandem with higher y-o-y revenue for 2QFY2020, the Group recovered from a net loss of $0.46 million in 2QFY2019 to achieve a net profit of $0.21 million in 2QFY2020.
MOVING FORWARD
The Group sees further opportunities in adapting the Train to Busan ("TTB") Intellectual Property ("IP") rights for different show concepts/immersive attractions based on the requirements of various venue operators. Vividthree has recently teamed up with Resorts World Genting to produce 'Train to Busan Horror House', a first-of-its-kind immersive experience for their visitors. The Group also expects that TTB IP shows will be able to gain more attention and interests as the sequel to the successful hit zombie movie 'Train to Busan 2: Bando' is slated for release in coming year 2020.
Continuing our momentum in the Content Production segment, on 13 August 2019, the Group entered into a MOU with Animation International Ltd to develop the Doraemon Experience ("DE") show with the integration of the elements of virtual reality and augmented reality. The DE show is an immersive experience featuring one of the most iconic character and is anticipated to be made available in Singapore within the next 12 months.
Earlier in November 2019, the Group has also entered into a MOU with the Malaysia Institute of Economic Research ("MIER") and Science Discoveries Sdn Bhd ("SD") as the exclusive immersive technology, gamification and IT production provider for a RM1.3 billion (S$S$427 million) tourism mixed development project- HeurêkaLand.
SD has also appointed Vividthree as its exclusive partner in technology support, content creation and the main contractor for all its immersive experience projects, allowing Vividthree to tap on SD's network and strong pipeline of projects to strengthen its market presence in Malaysia.
In addition, the Group sees potential in webcomics due to the increased usage of smart devices. The Group plans to target the tech-savvy millennial generation in our upcoming initiatives, in which consumers can view comics on mobile platforms. The Group is planning to launch webcomics videos at the Singapore Comic Con1 (SGCC 2019) in December 2019, bringing popular and quality content from established creators such as Dark Box Studio to consumers.
The Group remains optimistic for both its Content Production and Post-production segments, as Vividthree strives to achieve its leadership position as a digital content producer.
Managing Director of Vividthree, Mr Charles Yeo commented, "We are encouraged by the improvements we have seen in this set of results. Our Post-production segment continues to provide the base for the Group's profitability in this quarter. We have been gaining positive traction in the Content Production segment after we rolled out TTB VR Tour Show in Beijing and Xiamen. We want to grab every opportunity to adapt and produce a different concept of immersive experiences like the recent launch of the 'Train to Busan Horror House' in Resorts World Genting. The Group continues to grow its content development capabilities with the recent announcement on the MOU to create and develop 'Doraemon Experience'. We continue to be confident in maintaining our current position in this industry."
ABOUT VIVIDTHREE HOLDINGS LTD.
Established in 2006, Vividthree is a virtual reality (VR), visual effects (VFX) and computer-generated imagery studio that develops and creates digital intellectual property assets that primarily consists of storylines with accompanying characters and visual elements. Vividthree develops and/or acquires digital intellectual property assets to produce virtual reality products such as thematic tour shows, such as the recently announced Train to Busan.
Vividthree has a network presence in Singapore and Malaysia, focusing primarily on two business segments, namely, Post-production and Content Production.
In 2015, Vividthree Productions Pte. Ltd., which is now a subsidiary of the Company, was acquired by mm2 Asia Ltd., a Singapore based, SGX Mainboard-listed producer of films, TV and online content.