AIM-listed esports firm Gfinity grows revenues 82% as loss widens £8.4m
AIM-listed esports business Gfinity plc saw its revenues almost double last year – but investment in its services and increased administrative expenses kept losses in the eight figures.
The London-headquartered company generated a revenue of £4.3m in the 12 months to June 30 2018, which represents 82% growth on the £2.4m turnover posted in 2017.
Gfinity made a loss before tax of just over £13.7m, up from a £5.3m pre-tax loss the year previous.
The firm said investing in the launch of its Gfinity Elite Series of esports events in the UK heavily impacted the results, as did increased staff costs resulting from its acquisition of CEVO Inc and Real SM Ltd in July 2017 and March 2018 respectively.
Gfinity’s highlights for the year included a partnership with Formula 1 and game firm Codemasters for the launch of the inaugural Formula 1 Esports Series.
The company said its Gfinity Elite Series, which kicked off in July 2017, saw participation from 10 big esports franchises, led to its first major content rights partnership with social giant Facebook and at one point drew live viewership of 12.5 million people.
Gfinity plc executive chairman Garry Cook, the former UFC and Manchester City boss appointed in May, said: “It has been an exciting year for the company.
“We have further strengthened the foundations of our business by continuing to invest in our strategic priorities to generate future revenue growth.”
He continued: “Over the past 12 months we have connected publishers such as EA and Microsoft, rights holders such as Formula 1 and global brands and media partners with the young, engaged and fast growing esports community.
“Gfinity is a trusted brand in one of the most exhilarating and fast-growing industry segments. In 2018 we will continue to focus on delivering an innovative tournament series, creating and hosting partner events, building our digital ‘Tribe’ community, and helping to show the societal benefits of gaming through our corporate responsibility initiatives.”