Gfinity, along with its local partner, HT&E, launched Gfinity Esports Australia back in 2017, marking the first time it had taken its flagship Elite Series competition overseas.
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Since then, the Elite Series, which sees professional teams go head-to-head at different video games, has held its own in terms of revenue performance and audience figures.
“However, the business has not reached the required level of profitability and further significant additional capital investment is required to make Gfinity Esports Australia commercially viable,” Gfinity said on Wednesday.
Instead, the new management team, which includes heavy-hitting sports executive Garry Cook, want to use that money to grow the company’s presence in the US – the fastest growing esports market in the western hemisphere.
The AIM company’s investing partner, HT&E, wanted to move out of the esports space to focus on its core Australian radio business.
All costs relating to Gfinity's investment in the joint venture have been expensed as incurred, meaning no material financial write off will be required.