Shares of Gfinity(LON: GFIN) plunged in early Friday trading after it posted its final results for the year ended June 30, 2022.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The esports technology and media business has tumbled over 37% in the early part of the shortened trading session, hitting a low of 0.61p per share.
Gfinity's pre-tax loss widened to £4.2 million, compared to a £4.1 million pre-tax loss during the same period last year. Meanwhile, revenue declined 8% to £5.3 million from £5.7 million, although it saw a 33% rise in revenue attached to its owned audience, technology, and esports properties.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The company told investors that its decision to prioritise its “what we own” strategy over the delivery of numerous fee-based one-off client service programmes have had an unfavorable short-term impact on its top-line revenue in 2022. However, Gfinity believes the investment it has made into the productisation of its proprietary esports technology will start to drive revenue growth from 2023 onwards.
There was a 28% reduction in Gfinity's adjusted operating loss, which came in at £2 million compared to £2.7 million in the prior year period.
Looking forward, the company said that while short-term success will continue to be impacted by the current macroeconomic climate, particularly concerning advertising rates within the GDM network, “the long-term growth potential remains very strong.”
“The transformation of Gfinity's business model is now well underway. It is delivering improved financial performance and we continue on a pathway towards profitable growth. We are building shareholder value through Athlos, our owned tech IP licensing business,” said Gfinity Chief Executive John Clarke.
“Our owned community of hard to reach gamers, GDM, is driving value by deepening engagement with users. And our excellence in the digital racing and football space makes Gfinity a partner of choice with leading sports rights holders and brands. Competitive gaming is a growth sector and Gfinity has carved a niche for itself in the evolving ecosystem in the past year. This will serve us well in the years ahead,” he added.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.