The esports and gaming solutions provider Gfinity (GFIN ), which describes the year to 30 June 2021 as a period of “strategic delivery”, said it is now in a position “to grow and monetise at scale.”
Today, the London-listed firm has published its final results for the year ended 30 June 2021 in which it reported a 27% increase in revenue to £5.7m, up from £4.5m in FY20, which it said was driven by a 768% rise in revenue attributed to Gfinity’s owned and co-owned properties.
Gfinity slashed its operating losses over the period by 50% to £2.7m up from a £5.5m loss. In the last quarter of 2020, the company delivered its first ever quarterly adjusted EBITDA profit.
As a result, the Adjusted EBITDA loss, which includes the impact of all gains and losses on associates, reduced to £2.3m, representing a year-on-year reduction of 61% (FY20: £5.8m).
Cash and cash equivalents at year end stood at £1.4m (2020: £1.6m), supplemented by a post year-end over-subscribed fundraiser of £3.3m before costs for targeted acquisition.
In December 2020, Gfinity acquired the Epicstream business, a move supplemented following the year-end by the acquisitions of the trade and assets of SiegeGG and of Megit Limited.
The company said these acquisitions are in line with its strategy to build “a large and highly engaged digital media publishing business based around gamers and their lifestyles.”
Gfinity saw strong growth within its publishing platform Gfinity Digital Media Group (GDM) which reported revenues of £1.6m in FY21. Across the full year to June 2021, GDM averaged 10.7m monthly active unique users, delivering average annualised revenue of 15.2p per user.
The company said the significant growth of its owned and recurring revenue streams provides a strong foundation for scalable growth in future years, with the GDM platform selected by ‘leading brands’ to target specific gaming audiences and deliver global esports programmes.
Gfinity signed commercial agreements with leading brands and publishers in FY21 including with Activision, Manchester United, Cadburys, Formula 1, Premier League and Red Bull.
The Board of Gfinity said it remains confident in the prospects and position of the Company, especially as the supportive market dynamics we saw in the last year continued into this year.
In terms of market growth, Gfinity outlined that the gaming market continues to expand with more than 3.2 billion players globally and the industry generating revenue of US$175.8 billion.
Addressing shareholders today, the company told investors: “Gaming is here to stay and will continue to grow. Macro trends are working in our favour. Gfinity is now embedded into the gaming ecosystem and is adding value to it through the strategic focus on ‘what we own’.”
“Looking ahead, we are now in a position to grow and monetise at scale. Despite ongoing uncertainty around Covid-19, macro trends around gaming are attractive and we remain focused on delivering against our strategy,” said Gfinity’s Chief Executive, John Clarke.
Last month, the comp[any announced that Gfinity Digital Media had been appointed by Amazon Games to deliver a launch campaign for the recently launched New World game.
New World is described by the esports group as a “massive multiplayer online role-playing game (MMORPG)” developed by Amazon Games for the PC, launched in September 2021.
It explained that the deal is the latest collaboration under its strategic pillar which is aimed at strengthening GDM and is focused on improving its ability to offer broader and more in-depth content to its audience whilst enabling brands to engage with the gaming community.’
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