Gfinity Cuts Loss by 77% to $1.16M, Concludes Strategic Review and Formal Sales Process

U.K.-based esports business Gfinity has released its financial half year results for the six-month period ended Dec. 31, 2020. The London-based company’s total revenues for the first half of its fiscal year 2021 were £3.01GBP ($4.14M USD), down 14% year-over-year from £3.52M ($4.84M) in the first half of fiscal year (FY) 2020Gfinity pointed out that its H1 FY 2020 revenues “benefitted from a significant one-off consulting project, a one-off project for Amazon and some live events.” 

After taxes, the company generated a loss of £841K ($1.16M) for the period compared to a loss of £3.7M ($5.08M) in the same period of FY 2020The reduction in losses was partially achieved by Gfinity’s cost reduction program undertaken in March 2020, which saw administrative expenses decrease from £5.44M ($7.47M) in H1 FY 2020 by 47% to £2.86M ($3.93M) in H1 FY 2021. 

Furthermore, the company announced the conclusion of its strategic review and formal sales processGfinity’s board of directors concluded that “it is in shareholders’ best interests to focus on accelerating the growth of the business under its existing strategy.” 

The decision to not make any further strategic changes has been “encouraged by the discussions held with a range of parties, which resulted in the signing of one of Gfinity‘s largest ever multiyear commercial contracts with the sports fan engagement site IQONIQ.” 

Note: The Esports Observer used the exchange rate in effect as of Mar. 30 at a rate of £0.72780 to $1.00 for currency conversions in this article. 


Source: Read Full Article