Gfinity PLC (LON:GFIN) has highlighted continued growth in its digital media business, saying the business arm is expected to generate £2mln in revenues for the financial year ending June 30, 2021.
The esports events group said the digital media arm was one of its fastest-growing revenue streams, having delivered close to £200,000 through on-site advertising by the end of July after implementing a partnership with advertising group Venatus in mid-April.
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Gfinity also said the business line has been selected to deliver a “growing number of repeat advertising campaigns for high-profile publishers”, with a “strong pipeline” of direct campaigns already secured and running in August.
The group added that its digital media channels have been fully optimised for a strong fourth quarter in 2020 into the first quarter of 2021, with advertising campaigns and promotions to be driven by the launch of new consoles, games and peripherals. Gfinity also said it has strengthened its in-house media sales capability.
Overall, the company expects revenues from the business line to support its move into profitability in the first quarter of 2021.
Gfinity noted that 50% of the audience for its Gfinityesports.com website is now based in the US, which the firm said was “significant as it contributes to higher advertising revenues across the site”. The group has also recruited a US editor to allow for a steady news flow 24 hours a day.
The company has, as well, partnered with TopCashBack to provide deals and offers to the growing community through its Gfintiy Plus rewards programme for its online community, adding that it has also begun to monetise a large proportion of its social channels.
"Gfinity Digital Media continues to go from strength-to-strength. Our sites have become popular destinations for the latest news on a number of games including FIFA, Fortnite, Call of Duty and Minecraft. We continue to attract increasing numbers of visitors each month, with StealthOptional, our new ecommerce focused site, experiencing a record number of users in July - more than 140,000. We are well positioned to leverage the opportunities that will come with the new console launches and AAA game releases towards the end of this year”, said Talal Musa, head of Gfinity Digital Media in a statement.
“For brands looking to connect with the hard to reach gamer then all roads lead to the Gfinity Digital Media. Gfinity Digital Media plays a pivotal role in supporting our target of moving into profitability in [the first quarter of 2021] and we are excited for what is to come", he added.