Engage XR Holdings PLC on Monday said its half-year loss narrowed and revenue grew, and expects collaborations to boost its growth in the next six months.

Shares in Engage XR jumped 12% at 3.20 pence each in London on Monday morning.

In the six months ended June 30, the Waterford, Ireland-based virtual reality software and technology group said pretax loss narrowed to €2.2 million from €2.8 million a year prior, as revenue grew by 17% to €2.1 million from €1.8 million the year before.

This was driven by a ‘continued acceleration’ in revenue from its Engage platform, which contributed to 93% of the company’s total revenue.

Looking ahead, Engage XR is ‘optimistic’ about the second half of 2023, noting that the final quarter of the year is traditionally its busiest growth period when most of its contract renewals take place.

The company added it expects potential ‘additional revenue opportunities’ from its collaborations with technology conglomerate Meta Platforms Inc and electronics designer and manufacturer Lenovo Group Ltd.

Last year, Engage and Lenovo signed a partnership agreement to cover the resale and distribution of end-user licences by Lenovo of Engage’s metaverse for business platform, Engage Link. Lenovo is one of Engage’s 14 launch partners, and it is building its own virtual world within Engage Link.

Engage has also been collaborating with Meta since last year on a series of projects, including its Quest 2 virtual reality headsets.

Engage XR Chief Executive Officer said: ‘Engage’s client list, user numbers and revenue continue to grow. Given the sharp global decline in tech spend, this performance is an excellent endorsement of the value that clients think that Engage brings to their businesses.’

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