Gfinity PLC (LON:GFIN) has reported sharply reduced losses in its final results as its financial performance improved following a transition to focus on higher value and higher margin revenue streams.
For the year ended June 30, 2020, the esports media group reported an adjusted operating loss of £5.5mln, narrowed from an £8.6mln in the prior year, while revenues were at £4.5mln compared to £7.9mln in 2019.
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The firm also reported that it had cut its operating cost base by 50% following a major restructuring in March, while it ended the year with a cash balance of £1.6mln plus £2mln of unexercised warrants which it said left it “well capitalised to deliver against the market opportunities in the growing esports market”.
Gfinity highlighted significant growth in its newly launched digital media group, Gfinity Digital Media, which it said is now on target to generate revenues of over £2mln in the 2021 financial year, adding that it has made “excellent progress” in its three core focus areas.
Looking ahead, the firm said market dynamics are “rapidly, and permanently, changing in favour of the company's offering” and that a strategic review is underway to explore all optional to capitalise on market opportunities.
“We are delighted that our sharpened focus on three core areas is now driving improved financial performance and we have significantly strengthened our market positioning to create an exciting platform for future growth. We have competitive strength and momentum in three core areas, being: what we own, what we co-own and the communities we build for others. We continue to deliver on our promise of providing unique esports solutions for our clients, using our own tech IP and world-class production capability and working with some of the world's biggest brands”, Gfinity chief executive John Clarke said in a statement.
“We announced a review of our corporate strategic options on 9 October 2020. This is progressing as planned. It is at a very early stage but we look forward to exploring these options and to updating shareholders in due course", he added.