In a trading update for the first half of its current financial year, the esports media group said as a result of its performance in December it was profitable for the final quarter of 2020 on an adjusted earnings (EBITDA) basis, while its cash position as of December 31, 20320, was £1.7mln, slightly ahead of the £1.6mln accrued by the end of June last year.
Gfinity noted that it has “continued to see positive traction” across its digital media group, GDM, with what it said was “significant growth” in monthly users across all of its sites, reaching nearly 40mln users between October and December.
The company also said this week that it will launch a new site, MTG Rocks based on popular card game Magic the Gathering, while it also continues to optimise its sites with the launch of a unified platform in January that it said will allow it to “deliver content anywhere at any time”.
The company added that while it had reported a strong performance in the past quarter, it noted that due to the project-based nature of its revenue streams and some seasonality in the business in the short term the performance did not imply it will always be profitable on a monthly basis going forward.
The firm also said that its formal sales process (FSP), launched in October last year, is continuing to progress as planned and that it is “continuing to engage in conversations” while the board evaluates the best options to accelerate the growth of the business.
"Since March 2020 the focus has been on transforming the financial performance of the business. The positive results in the last quarter of the 2020 calendar year demonstrates that the strategy we have implemented is starting to deliver. We recorded the first quarter of adjusted EBITDA profitability in the Company's history, a significant milestone. In GDM, we now have a fast-growing and highly profitable revenue stream. At the same time, we have identified significant opportunities to maximise licensed based revenues for our technical platforms, both tournament play and virtual production. The commercial pipeline is strong and there is a better understanding in the marketplace of the value that Gfinity brings”, Gfinity chief executive John Clarke said in a statement.
"The overall market environment, caused by [coronavirus] and recurring lockdowns, is naturally having an impact across all sectors. Whilst we are confident as to the prospects for the Company, we will continue to ensure Gfinity can navigate any potential challenges created by the current situation. We are well-positioned to reap the rewards of being a leading player in one of the most exciting industry sectors in the world. The team is working hard and smartly to build value for shareholders. The fundamentals are strong and the foundations are now in place to enter a period of solid growth", the CEO added.