31st Mar 2020 16:06
(Alliance News) - Esports services provider Gfinity PLC on Tuesday said its interim loss narrowed on higher costs, even as revenue declined.
Shares in Gfinity were 48% higher at 1.95 pence on Tuesday in London.
For the six months to the end of December, Gfinity reported a pretax loss of GBP3.7 million, narrowed from GBP5.8 million a year ago, due to a fall in the cost of sales to GBP1.5 million from GBP3.9 million, and administrative expenses to GBP5.4 million from GBP6.0 million.
However, revenue declined by 20% to GBP3.5 million from GBP4.4 million, caused by the company's shift to higher margin revenue from consultancy and community building, and a reduced focus on lower margin publisher tournament operations, alongside ending the Elite series in its historical format.
Looking ahead, Gfinity said it believes it can withstand the anticipated operational disruption caused by the Covid-19 virus.
While physical events have been postponed at the Gfinity Arena, the company reported a significant increase in the number of sports rights holders and media companies looking for virtual gaming services and content.
"There has been significant positive momentum in the business especially in the areas of motorsport through our relationship with F1, our fast-growing Own Community franchise and our online tournament platform that successfully delivered the ePremier League. However, the business also encountered significant headwinds during the period with commercial contracts and strategic partnership conversations taking longer than expected to conclude," said Chief Executive Officer John Clarke.
"These headwinds have been compounded by the unprecedented impact of Covid-19. To realise the significant opportunity that exists for the business it was clear that we needed to make structural changes, significantly reduce our cost base and sharpen our focus on those areas where we are already enjoying success," Clarke added.
By Dayo Laniyan; [email protected]
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