logo-loader
viewGfinity PLC

Gfinity surges as it cuts losses by 45% in half-year

The group also reported “continued growth” in its community of gamers, with its websites and supporting social channels reaching more than 45mln people in February

Gfinity PLC - Gfinity surges as it cuts losses by 45% in half-year

Gfinity PLC (LON:GFIN) shares surged on Tuesday afternoon as the esports firm cut its losses by 45% in its first half.

For the six months ended 31 December, the AIM-listed company reported an adjusted operating loss of £2.4mln, down from £4.4mln a year ago, while revenues decreased 20% to £3.5mln.

READ: Gfinity inks website advertising deal with Bidstack and Venatus

The group reported “continued growth” in its community of gamers, with its websites and supporting social channels reaching more than 45mln people in February.

The firm also said it has undertaken a strategic review of its business and begun a number of cost reduction initiatives which is aiming to reduce its annual cost base by 60% in 2021.

Looking ahead, while Gfinity said the uncertainty created by the coronavirus pandemic meant it was “not in a position to update financial guidance” for the year, it believed its business can “withstand the anticipated operational disruption” and that it is currently in discussions to secure a further £2mln of funding to supplement its cash position.

"There has been significant positive momentum in the business especially in the areas of motorsport through our relationship with F1, our fast-growing Own Community franchise and our online tournament platform that successfully delivered the ePremier League”, said chief executive John Clarke.

“To realise the significant opportunity that exists for the business it was clear that we needed to make structural changes, significantly reduce our cost base and sharpen our focus on those areas where we are already enjoying success. This is what we have done, and we are now on a pathway to breakeven", he added.

The shares were up 42.9% at 2p in late-afternoon trading on Tuesday.

Quick facts: Gfinity PLC

Price: 1.7 GBX

AIM:GFIN
Market: AIM
Market Cap: £12.29 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Gfinity PLC named herein, including the promotion by the Company of Gfinity PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Gfinity PLC lands its largest ever contract - a multi-year deal for F1 Esports

Gfinity PLC's (LON:GFIN) CEO John Clarke speaks to Proactive London's Andrew Scott after announcing they've signed an agreement with Formula 1 motorsports Grand Prix group F1 to deliver the main elements of the F1 Esports Series in 2020, 2021 and 2022. Gfinity will deliver the Pro Draft...

1 week, 6 days ago

2 min read