Gfinity making progress on the pathway to profitability
Last updated: 08:01 19 Mar 2024 GMT, First published: 13:35 30 Apr 2021 BST
Snapshot
- Gfinity hails streamlined focus on digital media after restructuring
- Esports will not replace real-world sport, but its growth could still be a boon for both markets
- Gfinity grows annual revenues by more than a quarter, supported by its digital media business
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 PLC (AIM:GFIN) reported a profit after spending the first six months of its financial year laying the groundwork for growth as a pure-play digital media network, having sold off its Athlos business and divested most of its esports division.
New chief executive David Halley, who was appointed last summer, has now completed a budget reduction process that included cutting monthly costs by over 70%.
Having reduced the management and editorial staff headcount to a size it says is appropriate for a modern digital company, the publisher said it is confident about further improving profitability and cash flow in the second half of its fiscal year.
Group revenue for the six months to 31 December was reduced to £805,741 from £1.4 million but operating losses were slashed to £19,205 from £937,911.
Gfinity PLC (AIM:GFIN), the esports company, rose more than 2% on Friday despite sales flagging and losses arising in all three of its divisions in the year to June.
The rise in the share price is likely an indication of investors understanding that the company is undergoing a massive restructuring.
After closing down the division in June, Gfinity PLC (AIM:GFIN) has officially disposed of the remaining assets of its former esports solutions operations.
Gfinity initially explored a profit-sharing agreement with a US esports business after closing its Gfinity Arena in Fulham, but “limited profitable growth opportunities” have led the group to focus solely on its media division.
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 (AIM:GFIN) CEO John Clarke joined Proactive's Stephen Gunnion to discuss annual results, which saw revenue increase by 27% to £5.7 million, driven by a 768% increase in revenue attached to Gfinity owned and co-owned properties.
Clarke telling Proactive that the company has continued to embed itself into the gaming ecosystem by providing unique esports solutions and establishing a highly engaged community of gamers through the Gfinity Digital Media Group (GDM) and its proprietary technology IP.
Proactive Research
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.