Chief executive John Clarke will tell Friday’s annual general meeting of the company that achieving first profits “was a major achievement”
() said it achieved operational profitability in October and November, the first time this has been done since its IPO in December 2014.
The AIM-listed group also announced the sale of its holding in Esports Awards for £500,000, after acquiring it in 2017 for £138,000, with the proceeds to be used to boost growth in its strategy.
In an update, Gfinity chairman Neville Upton will tell investors at the group’s annual general meeting on Friday that the positive momentum seen at the start of the current financial year has continued, and the esports media firm is also on track for a strong performance in December 2020.
“Given the project-based nature of some of our revenue streams and some seasonality in our business, it does not yet imply we will be always profitable on a monthly basis going forward, but it reflects the excellent progress made over the past nine months,” Upton said in the update.
“I am very pleased with the way we have sharpened our operational focus. It has positioned us strongly and the full extent of the market opportunity for Gfinity is becoming apparent. This positive performance has also been achieved against a challenging economic backdrop and the need to adapt to new ways of working.”
Upton will also tell shareholders that the business has been recalibrated on three core areas where the company has competitive strength and momentum, being owned products and services, such as Gfinity Digital Media, co-owned partnerships and building communities for others, such as tech IP, and world-class production.
“We have signed a multi-year deal with Formula 1, a five-year partnership with ADMM, seen strong growth in users in GDM and signed our first technology licensing contract,” he added.
“The business is now more efficient than ever following a rationalisation of our cost base, with further reductions expected to come in 2021. In November 2020, monthly operating costs were £385,000, a reduction of 47% since November 2019, with a further reduction expected on culmination of our office lease in March 2021.”
Chief executive John Clarke will tell shareholders that achieving first profits “was a major achievement” and “a sign that the changes we have made are delivering and this gives us confidence for the future”.
“We are alive to the risks and challenges facing our customers and markets, but we will stay focused on what we can control and will continue to deliver outstanding business results for our partners and clients. We will also maintain the resilience which has guided us through 2020 and I am confident that Gfinity is now well-positioned for growth in 2021 and…
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