The business development of NeXR Technologies SE (XETRA: NXR) in the first half of 2021 was impacted by the effects of the global pandemic on the contact-intensive economic sectors and thus by Corona-related delays in the start of pilot projects for the market launch of Avatar.cloud applications. As a result, the increase in sales activity expected for the second half of the year will also be delayed.
As expected, revenues of EUR 147 thousand were below the prior-year figure (H1 2020: EUR 188 thousand), while total operating performance increased by around 71% to EUR 321 thousand given the consistent investments in promising pilot projects of NeXR Fashion and NeXR Fitness as well as NeXR Show and NeXR Seminar product lines. Consequently, earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to EUR -4,761 thousand (H1 2020: EUR -4,455 thousand). All in all, the net loss for the period amounted to EUR -7,407 thousand in the first half of 2021 (H1 2020:
EUR -6,694 thousand).
The considerable delay in opening the gyms and retail led to delays in the pilot projects with the fashion company H&M and the fitness chain RSG Group in the first half of 2021. As such, the test phase of the Avatar.cloud training application only successfully got underway when the gyms opened at the JOHN REED Fitness Music Club in June. A second scanner went live in September. In contrast, the development and release of further milestones for the FC Bayern VR Experience went according to plan.
In consequence of the described delays in the context of the pandemic situation, the Board of Directors had adjusted the forecast for the current financial year 2021 in September and now expects revenues of EUR 0.4 million to EUR 0.8 million (previously: EUR 1.5 million to EUR 3.0 million) and a net loss of EUR 14.8 million to EUR 15.5 million (previously: net loss of EUR 12.5 million to EUR 13.5 million) for the full year 2021.
Taking into account the successful start of the pilot projects as well as the positive initial feedback from the business partners, NeXR Technologies SE following the successful completion of the pilot phases expects an expansion of the partnerships and the further development of the products as well as catch-up effects in revenue realization through new customer acquisition.
The financing of the Company’s continued investments in the further development of technology and customer-specific applications is secured by the shareholders’ financing commitments, which were expanded in September 2021 to EUR 36 million so far.
NeXR Technologies SE’s 2021 half-year report is available for download at https://www.nexr-technologies.com/publikationen/