22nd Mar 2016 08:52
LONDON (Alliance News) - eSports company Gfinity PLC saw its shares fall on Tuesday morning after it said contract delays will result in its revenue for the full year missing expectations.
Gfinity, which stages events at which audiences watch people play video games, said it remains in talks with prospective partners, but it is difficult to quantify when revenue from these talks will flow through to the business. Due to this, while revenue for the full year to end of June will rise significantly, it will miss market expectations, the company said.
Gfinity shares were down 18% to 9.83 pence, one of the worst performers in the AIM All-Share in early trade.
For the first half to the end of December, revenue rose to GBP624,292, a more-than-fourfold rise on the GBP145,401 posted a year earlier. Gfinity's pretax loss, however, widened to GBP1.9 million from GBP1.4 million due to sharply higher administrative costs and investments made in the business.
"Looking ahead, the eSports sector is growing unabated and the potential opportunities for Gfinity remain vast. We have now created a very strong position from which to monetise; drawing on both the reputation for quality that we have established with gaming publishers and fans alike and the unique suite of technological and physical assets that we have created," said Neville Upton, Gfinity's chief executive.
"We are seeing increased interest from advertisers and sponsors who are keen to access the thriving Gfinity audience. These discussions have given us further encouragement for the potential monetisation of the Gfinity brand and we look to the future with confidence," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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