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Summary
- Gfinity PLC had posted a decline of 14.49% in the revenue to around £3.01 million during H1 FY21 ended 31 December 2020.
- GFIN had announced the conclusion of the strategic review and formal sale process on 29 March 2021.
- GFIN had narrowed down the adjusted operating loss and shown an improvement of 62% during the period.
- GFIN had signed a commercial agreement with IQONIQ on 11 March 2021.
Gfinity PLC (LON:GFIN) is the LSE listed consumer services stock. GFIN’s shares have generated a return of approximately 83.07% in the last 12 months. It is listed on the FTSE AIM All-Share Index.
Business Model
Gfinity PLC is the FTSE AIM All-Share index listed esports and gaming Company based out in the UK. Moreover, it connects millions of gamers around the world through the digital media group known as Gfinity Digital Media, which includes several websites listed below –
- Gfinityesports
- RealSport101
- StealthOptional
- gg
- Epicstream
Recent News
On 29 March 2021, the Company had announced the strategic review conclusion and the termination of the Formal Sale process as announced on 09 October 2020.
On 15 March 2021, GFIN had updated that Gfinity Digital Media had collaborated with Magic Lamp Technologies Limited. Furthermore, it would start a new partnership with the owner and operator of Mapgenie to embed MapGenie's interactive video game maps into relevant articles.
On 11 March 2021, GFIN had signed a commercial agreement with IQONIQ, under which IQONIQ would become the Company’s official gaming partner for three years.
Financial Highlights (for 26 weeks ended 31 December 2020, as of 29 March 2021)
(Source: Company result)
- GFIN had reported a decline of 14.49% in revenue from £3.52 million during H1 FY20 to £3.01 million during H1 FY21.
- With regards to the profitability, GFIN had demonstrated approximately 63% improvement in the adjusted operating loss to around negative £1.29 million during H1 FY21 ended 31 December 2020.
- Gfinity Digital Media had achieved around 14 million monthly users during November 2020, and revenue had crossed £275,000 for the first time in a month.
- GFIN had disposed around 33% of holdings in Esports Awards Ltd on 18 December 2020.
- Moreover, GFIN had acquired the trade and assets of EpicStream Inc on 03 December 2020.
- The Company had witnessed a significant reduction in adjusted administrative expense during the first half of FY21 as compared to an equivalent period of the prior year.
- Furthermore, the Company had managed to increase the cash to £1.8 million as of 31 December 2020, while it was £1.6 million as of 30 June 2020.
- Gfinity digital media had generated revenue of around £1 million during the period.
Share Price Performance Analysis of Gfinity PLC
(Source: EODHD/Others, Thomson Reuters)
GFIN’s shares were trading at GBX 3.94 and were down by close to 0.35% against the previous closing price as of 29 March 2021 at 12:42 PM GMT. GFIN's 52-week Low and High were GBX 0.90 and GBX 6.20, respectively. Gfinity PLC had a market capitalization of around £31.46 million.
Business Outlook
The Company is well capitalized to achieve strategic objectives. The Company had several strategic deliveries as it would seek out additional commercial opportunities throughout 2021. Moreover, GFIN had signed its largest-ever multiyear commercial contract with IQONIQ. However, the Company had highlighted the seasonality factor anticipated from the advertising revenues. Furthermore, GFIN would continue to leverage the expertise to create an innovative solution for the partners. Meanwhile, the Company had launched V10 R-League in collaboration with the Abu Dhabi Motorsport Management and managed to attract more than 40 million viewers. GFIN would also launch season 2 of V10 R-League by adding McLaren Shadow and R8G Esports during mid-April 2021.
Gfinity Digital Media had anticipated delivering approximately £2 million of revenue during FY21. Also, the Company had demonstrated the expansion of Gfinity Digital Media with the launch of Mtgrocks during the period and further announced a partnership with the Mapgenie. Overall, the Company is upbeat regarding accelerated growth driven by positive long-term momentum built through new partnerships and deliver on a robust pipeline of opportunities.
