23rd Jan 2020 10:34
(Alliance News) - Gfinity PLC on Thursday said it expects annual revenue to be broadly flat year-on-year despite a sharp reduction in the first half.
The AIM-listed e-sports company was trading 16% lower in London in morning trade at 2.38 pence a share.
Gfinity said trading in the six months to the end of December was broadly in line with expectations, resulting in revenue of GBP3.5 million. This was, however, 20% lower than GBP4.4 million reported a year earlier.
Gfinity explained that the decline reflected its transition to higher-margin revenue streams from low-margin Elite Series revenue.
Elite Series is a league hosted by Gfinity, in which ten different e-sports organisations in the UK and six in Australia battle across different games.
More positively, Gfinity said it expects gross profit to more than quadruple to GBP2.1 million from just GBP500,000 the prior year, reducing its adjusted operating loss to GBP2.4 million from GBP4.4 million year-on-year.
Looking ahead, Gfinity said it now anticipates revenue for the year to the end of June to be broadly in line with the year before, while margins are expected to be ahead of current market expectations.
The company also said it is in talks with potential strategic investors in the US and Europe that are expected to create new opportunities.
By Evelina Grecenko; [email protected]
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