In a trading update for the six months ended 31 December, the esports media firm said after “significant growth” in its higher margin revenue streams it now expected gross profits to rise 300% to £2.1mln, while adjusted operating losses will be cut to £2.4mln from £4.4mln.
This is despite revenues for the period being forecast to fall to £3.5mln from £4.4mln, which was attributed to the firm’s shift away from its low margin business activities.
Looking to the full year, Gfinity said as a result of its decision to refocus its business to a “strategic client management model”, which it said will move it toward “higher margin content creation”, and it now expects revenues for its current year to be broadly in line with 2019, although with significantly improved margins compared to current market expectations.
The implementation of additional cost-saving measures also meant the company is expecting to report a full-year adjusted operating loss in line with market forecasts, adding that it is also in active discussions with “several potential strategic investors” in the US and Europe.
Meanwhile, Gfinity said John Clarke, its current global brand and marcomms officer, has now been appointed as global commercial brand officer, while David Lipp, who has previously held senior positions at NBC Universal, Sky and Sony Pictures, has been appointed as head of sports and media rights.