Gfinity Plc (LON:GFIN) saw revenues soar last year, a “pivotal” period which saw the esports group launch its first online gaming series and partner with several big-name video game franchises.
In the 12 months ended June 30 revenues rose 64% to £2.37mln (2016: £1.45mln), which Gfinity said was primarily driven by tie-ups with the likes of Microsoft and Activision Blizzard.
First Elite Series launch
During the year “a key focus” for the AIM-listed firm was preparing for the launch of its first Elite Series tournament, which kicked off in July and ran until September.
That proved to be “highly successful” and a second season is now underway, with eight professional esports teams once again going head-to-head for the chance to win £225,000.
Launching a flagship tournament requires investment and was partly responsible for pre-tax losses creeping up to £5.3mln (£3.1mln), although this was in line with what management had expected.
Invested in management, technology and London arena
Gfinity also invested heavily in adding more expertise and experience to its executive team, as well in the refurbishment of its Gfinity Esports Arena in London and its technology.
Loss per share actually fell to 3p (2016: 4p a share), while it had £4.5mln cash in the bank at the end of the period (2016: £0.83mln) thanks to almost £10mln of fundraises during the year.
READ: Gfinity raises £7mln to fund next stage of its development
That figure is likely to have changed somewhat by now though, with Gfinity raising £7mln in September, acquiring US-based esports services provider Cevo for US$2.7mln (£2mln) and setting up its Elite Series over in Australia.
‘Pivotal year’
“This has been a pivotal year for Gfinity. As the esports sector goes from strength to strength so does Gfinity's enviable reputation within it,” said chief executive Neville Upton.
“I am pleased to be able to announce year-on-year revenue growth of 64%, driven principally by growth in our Partner Events business, which is working on an increasingly global basis with some of the world's best known games publishers and, since the year end, sports rights holders as well.”
He added: “With the esports sector continuing to grow and attract ever more non-industry commercial partners, it leaves Gfinity in a strong position to move forward into 2018 with confidence.”
Outlook bright for esports
Analysts at Newzoo echo Upton’s optimism, estimating in their latest Global Esports Market Report that the global esports audience last year was 385mln, with more than 1bn hours of coverage watched.
READ: Gfinity says Elite Series season to launch on October 6, with total viewership for season one in excess of three million
On top of that, they reckon the global esports market will grow by 41% this year compared to 2016, and expect the market to be worth US$1.5bn by 2020.