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Gfinity PLC

Esports group Gfinity to exit Australian joint venture as it focuses on fast-growing US market

The Australian joint venture with HT&E would need a “significant” amount of extra investment to make it worthwhile, and Gfinity bosses would rather use that money to expand in the US

Gfinity PLC - Esports group Gfinity to exit Australian joint venture as its focuses on fast-growing US market
The US is the fastest growing esports market in the western hemisphere

Esports solutions provider Gfinity PLC (LON:GFIN) is to exit its Australian joint venture at the end of November as it looks to double down on its investment in the more attractive US market.

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.

WATCH: 'The esports industry is booming and we're yet to scratch the surface' - Gfinity's Martin Wyatt

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.

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