John Clarke of Gfinity explains how the strategy is delivering, positioning the company for scalable growth

John Clarke CEO of Gfinity #GFIN explains how the strategy is delivering, positioning the company for scalable growth, which saw revenue growth, in their final results, by 27% to £5.7m and a 768% increase in revenue attached to Gfinityowned and co-owned properties.

Financial highlights

·      27% increase in revenue to £5.7m (2020: £4.5m), driven by 768% increase in revenue attached to Gfinity owned and   co-owned properties.

·      Significant reduction in adjusted operating loss by 50% to £2.7m (2020: £5.5m loss).

·      61% reduction in adjusted EBITDA loss, including the impact of gains and losses on Associates, to £2.3m (2020:   £5.8m loss).

·      Adjusted administrative expenses of £5.4m (2020: £8.3m), representing 35% year on year reduction, reflecting full   year impact of business restructuring in March 2020.

·      Cash and cash equivalents at year end of £1.4m (2020: £1.6m), supplemented by post year-end over-subscribed   fundraise to raise £3.3m before costs for targeted acquisition.

Operational highlights

·     Significant growth of owned and recurring revenue streams providing a strong foundation for scalable growth in future years, with GDM platform selected by leading brands to target specific gaming audiences and deliver global esports programmes.

·     Commercial agreements signed with leading brands and publishers including Activision, Manchester United, Cadburys,  Formula 1, Premier League and Red Bull.

   ·      Bolstered strategic partnerships to drive engagement across owned websites, including the launch of new digital       motorsport competition with Abu Dhabi Motorsport Management (ADMM) and expanded relationship with global  advertising technology platform Venatus.

·      Added significant senior talent bringing experience with publishers and in growing digital businesses to support with delivering on strategic priorities, including two additional Non-Executive Directors.

Growth and expansion of Gfinity Digital Media Group (GDM)

·      Strong growth of publishing platform, GDM, with revenues of £1.6 million.

·      Acquisition of leading online fantasy and sci-fi news community, Epicstream.

·      Partnerships launched with sites that add value to the user experience, such as MapGenie.

·      Launch of dedicated mobile gaming website Only Mobile Gaming! (OMG!) and new virtual racing website Racinggames.gg.

Post-period highlights

·      Acquisition of Megit Limited, owner and operator of the website Stock Informer, an ecommerce referral site for gamers and their lifestyles, funded via successful fundraise.

·      Acquisition of SiegeGG, including technology behind leading statistical analysis of Rainbow Six Siege video game.

·      Selected by Nintendo and Coca Cola Hellenic Bottling Company as operational partner for respective gaming and  esports tournaments.

·      Continued expansion of senior leadership team with appointment of new Head of Brands and Digital Relations.

Outlook

·      Refreshed strategy positioning the business to deliver scalable growth and drive financial performance.

·      Sharpened focus of growing what we own, further licensing of proprietary technology IP, and continued selection by major brands provides the Board with confidence in the long-term trajectory of the business.

·      Continued management focus on limiting impacts of macro-economic factors that could create headwinds.

About Gfinity

Gfinity (AIM: GFIN) is a market-leading digital media publisher and technology company in the rapidly growing esports and competitive gaming sector. Created by gamers for the world's three billion gamers, Gfinity has a unique understanding of this fast-growing global community. It uses this expertise both to provide advisory services and to design, develop and deliver unparalleled experiences and winning strategies for game publishers, sports rights holders, commercial partners and media companies.

Gfinity connects its partners with the esports community in authentic and innovative ways. This consists of on‑and-off-line competitions and industry‑leading content production. Relationships include Activision Blizzard, EA SPORTS, F1 Esports Series Red Bull, Abu Dhabi Motorsport Management and Coca Cola.

Gfinity connects directly with tens of millions of gamers each month through its digital media group, Gfinity Digital Media. Gfinity Digital Media includes websites such as: Gfinityesports, RealSport101, Epicstream, Stock Informer, StealthOptional, RacingGames.gg, MTGRocks.com and their respective social channels.

All Gfinity services are underpinned by the Company's proprietary technology platform, delivering a level playing field for all competitors and supporting scalable multi-format leagues, ladders and knockout competitions.