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Shares of British international esports company Gfinity PLC (LON: GFIN) fell 10% despite releasing a positive trading update for the first six months of its current financial year.
The company’s share price kept falling despite reporting its first profitable quarter in Q4 2020 boosted by strong performance in December in a classic buy the rumour sell the news scenario.
Gfinity reported a strong cash position of £1.7 million as at 31st December 2020, a slight improvement to the £1.6 million reported on 30 June 2020 at the end of its prior fiscal year.
The company generated £750,000 in revenues in Q4 2020 compared to £44,000 during a similar period in 2019 and is on track to generate about £2 million in revenues during the current fiscal year.
Gfinity acquired EpicStream, a leading online community for fantasy and sci-fi movies, video games, and comic books. It is currently integrating the site into its GDM network and has received instant results.
The company is set to launch a new site based on the popular Magic the Gathering (MTG) – MTG Rocks video game and will capitalise on EpicStream’s massive MTG community on Facebook to popularise the site.
Gfinity launched a new platform known as Manifold that it will use to optimise all its sites and create a single CMS to simplify managing its multiple sites, including sites acquired in the future.
Today’s selloff seems like an overreaction to the company’s statement that it does not guarantee future profitability, given the majority of its work's project-based nature.
Gfinity share price
Gfinity shares plunged 10% to trade at 4.5p after falling from Monday’s closing price of 5p.
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