Shares of esports solutions provider Gfinity (LON: GFIN) are lower slightly lower on Monday despite the company reporting a ‘significant improvement' in financial performance after a refocused business and significant cost base reduction.
The AIM-listed firm’s adjusted operating loss for the six months ended 31 December 2020 was significantly lower, coming in at £0.9 million compared with a £2.4 million loss during the same period in 2019, representing a 63% improvement.
Gfinity’s share price is currently trading at 1.26% lower at 3.90p per share.
The company’s revenue came in at £3 million, representing a 14% reduction on the £3.5 million the previous year.
The expansion of Gfinity Digital Media was highlighted, with the company stating that it generated £1m of revenue in the first half of the year and is on target to generate anticipated revenues of over £2m in the financial year 2021.
Looking ahead, Gfinity said it has sharpened its focus on three core areas, while they also believe there is good momentum heading into H2, and they are well placed to capitalise on the growing gaming market.
“We have ended the period with an impressive set of numbers, including a reduction in operating loss, a significantly reduced cost base and an improved cash position,” commented John Clarke, CEO, Gfinity.
“Our leading tournament platform, virtual production capabilities and proprietary technology IP means that we are uniquely placed to help brands engage with the rapidly growing gaming community,” he added.
The company also announced the conclusion of its strategic review and formal sale process that commenced in October last year, stating they “have been encouraged by the discussions held with a range of parties, one of which resulted in signing a significant multiyear commercial contract with the new sports fan engagement site IQONIQ and further deals are expected throughout 2021.”
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