The global esports economy is predicted to break the $1billion barrier during the year. We believe we are at the cusp of the inflection point in capturing the opportunity ahead of us.
Garry Cook, executive chairman
What it does
AIM-quoted Gfinity (LON:GFIN) is a world leader in the fast-growing market for esports.
The company provides full end-to-end esports solutions, including bespoke content, tournament and event solutions for commercial partners via its proprietary online platform and live broadcasting studio, plus it is building its owned Elite Series brand and hosting its proprietary Elite Series tournament format.
Revenues are derived from managed services fees for third-party events, and advertising and sponsorship.
Several big names have hired Gfinity to be its event partner and to look after the logistics of running a successful tournament, including none other than Microsoft.
The tech giant has partnered with Gfinity on numerous occasions, including for its Halo and Forza Racing championships.
Formula 1 has also used the companys services to run its competition to find the best virtual racer in the world, as has the Premier League, which launched its ePremier League last year.
Major game developers have also partnered with the company for various events, including a charity livestream in late-October which Gfinity hosted alongside Call of Duty developer Activision Blizzard Inc (NASDAQ:ATVI).
How it is doing
Gfinitys main presence is in the UK – the Gfinity Arena is in London – but it has been moving into other territories of late, where demand from gamers is also booming.
The new management team, which includes heavy-hitting sports executive Garry Cook, recently decided to exit a joint venture in Australia, which they decided needed too much extra money to make it economically viable.
Instead, bosses would rather ramp investment in the more attractive US market, which, according to esports analytics group Newzoo, is the fastest growing market in the western hemisphere.
That reflects the new managements strategy to focus spending on “value added areas”.
In terms of the financials, for the 12 months ended 30 June, the firm reported revenues of £7.9mln, up from £4.3mln in the prior year, while its adjusted operating losses narrowed to £8.6mln from £12.2mln.
The company said the revenue surge was driven by growth in the siRead More – Source
