17th Mar 2015 11:28
LONDON (Alliance News) - Gfinity PLC Tuesday reported a wider loss for the first half of its financial year as revenue grew strongly but was more than offset by higher costs, but the company said the investments it is making to build its brand are paying off as it adds about 20,000 new registered users a month.
The online gaming company, which listed on AIM in December, reported a pretax loss of GBP1.4 million for the six months to end-December, compared with a loss of GBP583,991 a year earlier, even though revenue grew to GBP145,401 from GBP16,303. The cost of making those sales doubled to GBP791,003, and administrative expenses more than tripled to GBP746,897.
The revenue growth largely came after the company staged the G3 event in London last August, the third Gfinity branded off-line competition and, according to the company, the UK's largest ever eSports event. However, the staging of its events and increased marketing activity also pushed up its costs.
"Since the AIM flotation, there has been increasing interest from prominent advertisers and sponsors in accessing Gfinity's audience, which due to its profile, is difficult to reach through traditional forms of media," the company said.
"While the potential for sponsorship and broadcast income is large, Gfinity's primary focus for 2015 is to continue to maximise growth of its user base and consolidate its reputation for delivering the highest quality eSports events and expanding the size of the online community. The board believe this approach will deliver the greatest long term value and looks to the future with great confidence," it added.
Gfinity shares were down 1.4% at 25.75 pence on Tuesday. It had listed at 17 pence in December.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Gfinity