Gfinity levels up in esports industry as growth accelerates
- Gfinity acquires site focused on hit shooter game Rainbow Six Siege
- Esports will not replace real-world sport, but its growth could still be a boon for both markets
- Gfinity focus on 'multiple revenue streams' on areas they 'own' to aim for higher margins and scale
Quick facts: Gfinity PLC
Price: 4.011 GBX
Market Cap: £43.94 m
About the company
Gfinity PLC is a world leading esports business.
Created by gamers for the world's 2.7 billion gamers, Gfinity has a unique understanding of this fast-growing global community.
It uses this expertise both to provide advisory services and to design, develop and deliver unparalleled experiences and winning strategies for game publishers, sports rights holders, commercial partners and media companies.
How it is doing
Gfinity (LON:GFIN) is buying a statistics, analysis and news site devoted to the Rainbow Six Siege hit tactical shooter video game in an all-paper deal.
The e-sports and gaming group is handing over 9mln shares worth £396,000 at current prices for SiegeGG Corporation – its third major acquisition in nine months.
The transactions are aimed at strengthening Gfinity’s Digital Media group.
"[Our] strategic focus is based on strengthening and growing 'what we own', in particular the Gfinity Digital Media group,” said chief executive John Clarke.
Half of the consideration will be satisfied in shares, with the rest paid in cash. As is common with many acquisitions, there is an “earn-out” period during which the final acquisition price may rise, depending on how the acquired business performs. The maximum aggregate consideration payable over the earn-out period is £1mln.
The esports firm said OMG! will cover the latest news, features and entertainment-based content across the mobile gaming sector, adding that GDM has deployed a new in-house team dedicated to integrating and growing the website within the wider group network by leveraging Gfinityesports.com's domain authority and existing user base, which includes over 1mln users reading about mobile gaming every month.
Insight: Esports will not replace real-world sport, but its growth could still be a...
Earlier this year, the coronavirus pandemic and lockdown measures around the world slammed the brakes on most live sport, with football matches, motor racing and other events postponed as the world battled the infection.
During the period, esports events stepped in to fill part of the void created by the absence, with esports media group Gfinity PLC (LON:GFIN) partnering with Formula 1 to host the F1 Esports Virtual Grand Prix, a series created to enable fans to watch Formula 1 races virtually using the F1 video game franchise.
What management says
Gfinity PLC (LON:GFIN) John Clarke speaks to Proactive London about sharply reducing their losses in the first half and their focus on 'multiple revenue streams' on areas they 'own' to aim for higher margins and scale.
Adjusted operating loss was £0.9mln, narrowed from £2.4mln in the prior year, while revenues from the period stood at £3mln compared to £3.5mln a year ago.
Clarke also addresses the conclusion of its strategic review and formal sale process, initially launched in October last year, saying that it has concluded it is in shareholders’ best interests for it to focus on 'accelerating the growth of the business under its existing strategy'.
Gfinity (LON:GFIN) is a world leader in the fast-growing market for esports. The company designs, develops and delivers full end-to-end esports solutions. This includes bespoke content, tournament and event solutions for commercial partners via the company’s proprietary online platform, live broadcasting studio events, and content distribution solutions. Distribution includes the Gfinity community platforms that provide the company with its own online media channels attracting millions of consumers each week and which are building a fast-growing revenue stream.
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