Gfinity PLC (AIM:GFIN) chief executive John Clarke said the eSports and technology company is continuing "on a pathway towards profitable growth" as it reported results for the year ending June 30, 2023.
The company posted revenue of £5.3m (2021: £5.7m), a decrease of 8% year-on-year (YoY), but that included a 33% increase in revenue attached to Gfinity's owned audience, technology and esports properties. Average monthly active users increased 36% YoY, while revenues generated per MAU increased 29%.
Gross profit of £2.7m (2021: £2.6m) was a 4% increase, despite the reduction in revenue, reflecting higher margins attached to the Gfinity-owned properties. Adjusted operating losses of £2mln represented a 28% YoY reduction, helped by a 13% drop in administrative expenses.
In the results statement, Gfinity chief executive John Clarke commented: "The transformation of Gfinity's business model is now well underway. It is delivering improved financial performance and we continue on a pathway towards profitable growth.
“We are building shareholder value through Athlos, our owned tech IP licensing business. The plug-and-play nature of what the team has built is gaining momentum, being adopted by game publishers large and small."
“Competitive gaming is a growth sector and Gfinity has carved a niche for itself in the evolving ecosystem in the past year. This will serve us well in the years ahead," he added.
Gfinity had £2.1mln of cash in the bank and £2.7mln in unexercised warrants at the end of its financial year.
Post period, Gfinity has been named by the Saudi Pro-League as its exclusive esports strategy development partner, and has launched the Athlos Game Technology platform targeting the fast-growing, US$127bn games services sector.