XRG Investor Presentation HY25
| Stock | Xreality Group Ltd (XRG.ASX) |
|---|---|
| Release Time | 5 Mar 2025, 9:05 a.m. |
| Price Sensitive | Yes |
XRG Investor Presentation HY25
- XRG is a market leader in immersive Extended Reality (XR) solutions
- Operator XR is the core growth asset, with strong traction in the US market
- XRG has agreed to complete a debt-to-equity conversion with Birkdale, improving the company's financial position
XReality Group (XRG) is a market leader in immersive Extended Reality (XR) solutions, offering both VR and AR experiences. The company's core product, Operator XR, has seen significant growth, outpacing the legacy entertainment segment in revenue and scalability. XRG has agreed to complete a debt-to-equity conversion with its major lender, Birkdale, at a 39% premium to the market price. This transaction will extinguish the Birkdale loan facility, reducing the company's debt from $8.7m to $4.1m and lowering the gearing to 30%. XRG had its strongest half-year result to date, with Total Revenue exceeding $7.4m (up 32% on pcp) and NLAT improving to $1.0m from NLAT of $1.5m in the prior comparative period. Operator XR revenue was $2.1m, up $1.8m on pcp, with strong momentum expected to continue throughout FY25. Annual Recurring Revenue (ARR) from Operator XR has grown 60% from June 2024 to $3.6m. XRG's go-forward strategy is to focus on Operator XR, specializing in delivering advanced XR training solutions worldwide for defence and law enforcement agencies. The company is expanding into key markets across North America, Asia, and Europe, aiming to secure a leading position in the global XR training industry.
XRG expects Total Contract Value (TCV) for Operator XR to grow 80% year-over-year to $7.4M by the end of FY25. Annual Recurring Revenue (ARR) from Operator XR is expected to reach $3.6M by the end of FY25, up 60% from the end of FY24.
XRG is streamlining the business to focus on Operator XR, with plans to invest in aggressive new product development, including augmented reality tactical training, cloud analytics, and XR streaming solutions. The company is also expanding its sales efforts in North America, Europe, and Asia, leveraging a growing network of distributors.