U.K.-based esports business Gfinity revealed in its annual general meeting that the business was operationally profitable in October and November. This marks the first time that the company achieved month-on-month operating profitability since it was listed on the Alternative Investment Market (AIM), a sub-market of the London Stock Exchange, in December 2014.
While a couple of operationally profitable months do not imply that Gfinity will be continuously profitable on a monthly basis going forward due to the effects of seasonality and project-based contracts on some of its revenue streams, Gfinity’s recent results can be partially attributed to its strategic restructure earlier this year.
Following a strategic review, Gfinity focused on three core areas of business in March: its own community, building communities for others, and motorsports. In total, Gfinity is looking to reduce its annual cost base of £8.5M GBP ($11.31M USD) by more than 60% through its restructuring. In its annual general meeting, the company shared that it reduced its monthly operating costs by 47% year-over-year to £385K ($512K) in November 2020.
Gfinity also announced that it has sold its 33% stake in the Esports Awards for £500K ($665K), yielding the company a 362% return on investment as Gfinity acquired the stake for £138K ($184K) in 2017. The sale valued Esports Awards Ltd at £1.52M ($2.02M). Gfinity stated that it will use the proceeds from the sale to further accelerate growth across Gfinity’s three strategic pillars.
Furthermore, Gfinity announced that it has appointed Len Renaldi, a former general manager at Apple Western Europe, as a non-executive director, who will join the company’s audit and remuneration committees.
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