Vividthree launches ‘Train to Busan’ VR tour at Busan International Film Festival

Singapore two-dollar bills

Vividthree is launching its “Train to Busan” virtual reality (VR) tour at the Busan International Film Festival (BIFF) from 6 to 9 October, the film-production and VR content producer said on Saturday.

The “Train to Busan” VR combined film and VR to offer “‘real-life’ zombie action,” Vividthree said in the statement filed to SGX on Saturday.

The Singapore-listed company had entered a deal in March with Contents Panda, which owns the rights to “Train to Busan,” to develop the VR tour show, it said.

“We believe that this VR thematic tour will not only put Vividthree on the map as a VR content producer, as we may acquire more intellectual properties and build more exhibit sets,” Charles Yeo, Vividthree’s managing director, said in the statement.

In a note on Friday, UOB KayHian noted that the company is shifting toward digital-content production from post-production provider, with the new segment expected to contribute around 60 percent of this year’s net profit.

“It should benefit from the rising penetration of VR,” the brokerage said. “If executed well, the VR tour will be highly profitable and transform Vividthree’s business model into a highly scalable one which it could grow with more recurring royalty income and intellectual properties.”

It said Vividthree expects S$1.0 million to S$1.5 million net profit from each VR set.

“As shopping mall operators increasingly seek theme-based experience to drive traffic, VR tour could stand to benefit,” UOB KayHian said. “Vividthree’s tour set is also highly modular, potentially attracting venue owners of different sizes, including theme parks and VR gaming providers.”

It noted that Vividthree has obtained clients for two VR set tours in 2019 and is aiming to sell three in 2020.

The brokerage, which doesn’t rate the stock, set a valuation range for Vividthree at S$0.44 to S$0.45 a share, based on peers’ valuations. The stock ended Friday at S$0.25; it was launched on Singapore’s Catalist board with a placement price of S$0.25 in late September.

Vividthree is a creative studio which makes content for multiple platforms and provides production service for the film-making process, through pre- and post-production.

Its VTX division specializes in creating immersive content for virtual reality and 360 degrees film for platforms including Samsung gear VR, Oculus rift, HTC vive and iOS and Android, according to its website.

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