(Alliance News) - EVR Holdings PLC on Thursday reported a widened interim loss as the company focuses on its new mobile app strategy.
Shares in the virtual reality content creator were down 16% in London in mid-morning trade at 4.18 pence each.
In the six months to June 30, EVR - which operates the MelodyVR platform - widened its pretax loss to GBP7.1 million from GBP4.4 million the year before. The company attributed this widened loss to increased investment in product development and content production.
The company generated GBP128,432 in revenue compared to GBP6,831 the year before.
EVR's administrative expenses jumped 67% to GBP7.0 million from GBP4.2 million the year before.
The company launched a mobile app in July, post period-end.
"The launch of MelodyVR on mobile devices marks a new chapter in our company's strategic direction. Within the first week of launching our mobile app we were the number 1 trending app on the UK's Google Play store and ranked in the top 20 apps on Apple's UK app store. Over the last two months, we have seen our install base grow significantly and with a rich calendar of upcoming content and events, we expect user numbers will continue to accelerate as we transition to a subscription based revenue model," said Chair & Chief Executive Anthony Matchett.
However, due to the increased investment needed to launch the app, EVR said revenue for 2019 "may not exceed" the GBP1.2 million reported in 2018.
"Our mobile strategy will provide greater opportunities for commercial partnerships as we seek to drive consumer awareness. We are confident these strong early metrics will continue and that we will be able to provide greater depth of insight when we release our full year results early next year," the company added.