Gfinity update doesn’t convince markets

1 mins. to read
Gfinity update doesn’t convince markets

Shares in AIM-listed gaming media business Gfinity (LON:GFIN) have sunk by 5.20% to 4.74p (as of 15:10 GMT) despite reporting that it made a profit during the final quarter of 2020. Management said that they had traded strongly in December, but the project based nature of key revenue streams mean that the firm will not be consistently profitable on a monthly basis.

CEO John Clarke commented: “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.

The overall market environment, caused by COVID-19 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“.

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