United Kingdom-based esports organization Gfinity (LON: GFIN) has reported its fiscal year (FY) 2019 results, with revenue of £7.9 million ($10.2 million USD) for the period ending June 2019. This marks the organization’s second consecutive year for over 80 percent growth.
Gfinity Fiscal Year 2019
The company has cut adjusted operating losses from £12.2 million ($15.7 million USD) to £8.6 million ($11.1 million USD), according to its financial report. This helped Gfinity achieve a gross profit of £1 million ($1.3 million USD), compared to a loss of £3.4 million ($4.4 million USD) in 2018. It attributes this change to the current strategic focus on delivery of higher-margin esports solutions for key partners.
The company’s administrative expenses grew from £8.7 million ($11.2 million USD) to £9.6 million ($12.4 million USD), which does include £2.5 million ($3.2 million USD) of non-cash items. In addition, it made an overall loss after tax of £12 million ($15.5 million USD) for FY 2019. However, Gfinity has stated that it is still on track to achieve adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) target breakeven in 2021.
The firm recently completed a £5.25 million ($6.8 million USD) investment in July, to fund future growth and strengthen commercial capabilities. The company also promoted Global Chief Operating Officer Graham Wallace to CEO and stated he would be responsible for leading the business, along with delivering on Gfinity’s three-year strategic plan.
Graham Wallace as CEO
“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,” said Gary Cook, executive chairman of Gfinity, in a statement. “The 3-year strategic plan is set, and the business is in a strong financial position. It is now time to write the next chapter of Gfinity’s exciting story.”
Graham Wallace served as the Chief Financial Officer (CFO) for MTV Networks Europe (NASDAQ: VIAB), IMG’s Global Sports and Entertainment Media business, and English football club Manchester City F.C (MANU: NYSE). Wallace also held positions as the COO for Manchester City F.C., CEO for Scottish football club Rangers F.C., and the Founder and Principal for boutique consulting firm Marlborough Sports Media Consulting.
Gfinity provides esports advisory and consulting services, connects with gaming consumers through competitions, and develops strategies for game publishers, sports rights holders, commercial partners, and media companies. The company has strategic relationships with F1 (NASDAQ: FWONA) and game publishers like Activision Blizzard (NASDAQ: ATVI) and EA Sports (NASDAQ: EA).
Gfinity says it is currently reaching 20.6 million gamers per month in June 2019, with its own media distribution channels. The company also added that it is on track to reach 25 million by the end of October 2019, with 100 million gamers a month for their 3-year plan.