Mentioned in this article
- Gfinity reported its fiscal year 2019 results, with total revenues of £7.9M GPB ($10.2M USD) for 2019, up 84% YoY from £4.3M ($5.6M) in 2018.
- At the start of the fiscal year 2020, Gfinity raised a £5.25M ($6.8M) investment to fund future growth and strengthen commercial capabilities.
- The company’s Global Chief Operating Officer Graham Wallace was promoted to chief operating officer (CEO) with immediate effect.
Yesterday, United Kingdom-based esports business Gfinity has released its results for the fiscal year (FY) 2019 for the period ending on June 30. The London-based company provides esports advisory services and designs, develops and delivers esports experiences, and plans strategies for game publishers, sports rights holders, commercial partners, and media companies.
Gfinity’s total revenues for FY 2019 were £7.9M ($10.2M), up 84% YoY from £4.3M ($5.6M) in FY 2018. This marks the second consecutive year with revenue growth above 80%. According to the company’s financial report, the gross profit of £1M ($1.3M) was driven by a strategic focus on the delivery of higher-margin esports solutions for key partners, which compares to a loss of £3.4M ($4.4M) in 2018.
After taxes, the company generated a loss of £12M ($15.6M) for FY 2019 compared to a loss of £13.6M ($17.6M) in FY 2018. Gfinity stated in its presentation to its investors that it is on track to achieve the adjusted EBITDA target breakeven in 2021.
The internationally operating company is engaged in several partnerships. Among others, Gfinity completed the second season of the Formula 1 Esports Pro Series and is contracted to deliver the third season of the Pro Series program in November, partnered with EA Sports for five events as a part of the FIFA 19 Global Series, sold broadcasting rights to Facebook and a headline sponsorship with Domino’s Pizza for Season 4 of Gfinity Elite series, and created an esports content series on behalf of Omen by HP.
Furthermore, the company promoted Global Chief Operating Officer Graham Wallace as CEO with immediate effect. Prior to joining Gfinity, Wallace held positions as chief financial officer (CFO) at MTV Europe, IMG’s global sports and entertainment media business, and British soccer club Manchester City FC (at the club, Wallace worked under current Gfinity executive chairman Garry Cook, who served as CEO for the club at the time). Additionally, he served as COO at Manchester City FC following his CFO position, and later as CEO for British soccer club Rangers FC.
“Gfinity has delivered a significantly improved financial performance this year, and we are on track to reach our target of adjusted EBITDA breakeven by 2021,” said Garry Cook, executive chairman of Gfinity, in a statement. “In light of this solid progress, now is the right moment to refocus our senior management team. Our new CEO, Graham, has extensive experience in a number of related industries and over the last 12 months as Global COO has demonstrated the qualities required to lead and accelerate the performance of the company. The three-year strategic plan is set, and the business is in a strong financial position.”
In July, Gfinity closed a £5.25M ($6.8M) capital raise to fund future growth and strengthen commercial capabilities.
Note: The Esports Observer used the exchange rate in effect as of Oct. 21 at a rate of £0.77914 to $1.00 for currency conversions in this article.
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