Gfinity (AIM: GFIN), a world-leading esports solutions provider, announces its unaudited results for the six-month period ended 31 December 2020.
· Significant improvement in financial performance following refocused business and significant cost base reduction.
· Adjusted operating loss of £0.9m, 71% improvement on six months to 30 June 2020 (FY20 H2 £3.1m loss) and 63% improvement on the same period in the prior year (FY20 H1: £2.4m loss).
· Revenue of £3.0m, an increase of 212% on the previous 6 months (FY20 H2: £1.0m), 14% reduction on same period in the prior year (FY20 H1: £3.5m). The previous period benefitted from a significant one-off consulting project, a one off project for Amazon and some live events.
· Adjusted administrative expenses of £2.5m, reduction of 36% on the preceding 6 months (FY20 H2: £3.9m) and 45% decrease on the equivalent period in the prior year (FY20 H1: £4.5m), reflecting significant cost reduction programme undertaken in March 2020.
· Business well capitalised to continue to deliver on its objectives.
o Increased period end cash of £1.8m compared to £1.6m at start of the period.
Continued commitment to building communities for others
· Delivery of Season 4 of the Formula 1 Esports Series in October 2020.
· Appointed to deliver new gaming tournament, the 'Cadbury Heroes Parents League'.
· Reappointed as the tournament operator for the third season of the ePremier League.
· Appointed as production partner by Red Bull for the Red Bull Worlds Simplified League of Legends World Final Show.
· Gfinity's tournament platform 'white labelled' for use in leading mobile game tournaments.
What we own: growth and expansion of Gfinity Digital Media Group (GDM)
· GDM generated £1m of revenue in the first half of the year. On target to generate anticipated revenues of over £2m in financial year 2021.
· Acquisition of EpicStream in December 2020. Site attracted c 1.3 million visitors in January 2021.
· New virtual racing website Racinggames.gg launched, attracting 75,000 users in its first month.
What we co-own (partnerships): leveraging expertise to create innovative and unique solutions for partners
· Launched V10 R-League as part of Global Racing Series (developed in partnership with Abu Dhabi Motorsport Management). Attracted over 40 million viewers on ESPN, BT Sport and STARZ ARABIA.
· Season 2 of V10 R-League to go live in mid-April with two new teams added, McLaren Shadow and R8G Esports. ESPN to extend distribution to its international markets.
Continued momentum post period end
· Appointed by IQONIQ as its official esports gaming partner for the next three years.
· Appointed by Formula 1 Esports to deliver the Formula 1 Esports Virtual Grand Prix 2021.
· Continued expansion of GDM;
· Appointed by Football Association of Ireland to deliver the eLOI, a new sports competition for League of Ireland clubs.
· Delivered Activision UK's Vikkstars King of the Hill tournament.
· Short-term commercial assignment relating to esports strategy agreed with Manchester United.
· Appointment of Len Rinaldi as Non-Executive Director. Previous roles include a twelve-year career at Apple with the last seven as General Manager of Apple Western Europe.
· The Company has sharpened its strategic focus on its three core areas, positioning it to continue delivering positive results moving forward.
· Management believe there is good momentum heading into H2, noting some seasonality is expected from advertising revenues and fewer Formula 1 events.
· Company well placed to capitalise on growing gaming market with leading tournament platform and virtual production capabilities.
Update on Formal Sale Process
The Company has also announced today the termination of the Formal Sale Process, details of which can be found in the Conclusion of Strategic Review and Formal Sale Process announcement.
John Clarke, CEO, Gfinity said: "Our relentless focus on delivering against our new strategy has continued to bring positive results. We have ended the period with an impressive set of numbers, including a reduction in operating loss, a significantly reduced cost base and an improved cash position.
Throughout the first half, we have continued to leverage the significant demand for our expertise and capability in creating unique solutions for our partners, whilst also expanding and investing in our community of gamers through our GDM platform. Despite the uncertainty caused by the COVID-19 pandemic, our business model has proved resilient. Our leading tournament platform, virtual production capabilities and proprietary technology IP means that we are uniquely placed to help brands engage with the rapidly growing gaming community.
We have also announced today the conclusion of the strategic review and Formal Sale Process that commenced in October last year. We have been encouraged by the discussions held with a range of parties, one of which resulted in signing a significant multiyear commercial contract with the new sports fan engagement site IQONIQ and further deals are expected throughout 2021. Now it is time to accelerate the growth of the business by being focused on the growth areas identified under each of our strategic pillars".