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Gfinity - Game on

Gfinity (LON:GFIN) is a world leader in the fast-growing market for esports. The company provides full end to end esports solutions, including bespoke content, tournament and event solutions for commercial partners via its proprietary online platform and live broadcasting studio, plus it is building its owned Elite Series brand and hosting its proprietary Elite Series tournament format. Revenues are derived from managed services fees for third-party events, and advertising and sponsorship. In the near future, we expect significant growth from revenue sharing on content derived from partner solutions.

 

Gfinity reported full-year (FY) June 2018 results (released 27 November) showing year-on-year revenue growth of 82%, and significantly reduced operating losses in the second half. The company also confirmed strong progress in signing additional commercial deals to propel growth in FY 2019. Revenues doubled purely from growing with its existing partners. New premium partners such as Premier League and new publisher partners have been added and will drive further growth.

We believe that the company will deliver continued strong revenue growth in FY 2019, and significantly improved operating losses. In this report, we examine the growth drivers for the esports industry, and for Gfinity specifically, including specific contracts and programmes for 2019 and beyond.

Full report is available via Capital Network website
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Gfinity Plc Timeline

CN Research
March 06 2019
CN Research
February 06 2019
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August 06 2018

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March 06 2019

Gfinity PLC (LON:GFIN) reported results for the first-half period to December 2018, on March 4, demonstrating very strong progress. Revenues grew 143% year-on-year, with 104% growth for the Managed Services business and 387% for the Owned Content business. Managed Services increased its revenues by 189% on a like-for-like basis (based on existing partners) and achieved 4.3x increase in viewership. Going forward we expect continued growth in both divisions, with Managed Services becoming the major driver.

Gross profit was +ve £0.5mln (H1 2018: £3.2mln loss), with the improvement driven by improved profitability in Managed Services and reduced investment in the Elite Series contributing to a £2.8mln improvement in gross profit for the Owned Content business. The company reported a net cash position of £6.4mln, representing a good level of resource to support further growth. Overall, we have increased confidence in our FY June 2019 forecast of 80% revenue growth and positive gross margin.

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March 12 2019

MTI Wireless Edge (LON:MWE) reported results on 11 March for the full year to 31 December 2018. The results show continued strong progress following the August 2018 merger of MTI Wireless Edge with MTI Computers. Revenues increased by 35%, or 2% organically, operating profit +21% organically, and earnings per share (EPS) +14%. The statement also highlights a healthy order backlog and pipeline of opportunities going into 2019.

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May 31 2018

MTI Wireless Edge Limited (LON:MWE) is a world leader in developing and manufacturing  high quality and cost effective antenna solutions for commercial and military applications, as well as control systems for remotely operated smart irrigation systems. The company has achieved strong growth in recent years, with a three-year revenue compounded annualises growth rate (CAGR) of 22% and an earnings per share (EPS) CAGR of 70%. These dynamics have supported a share price increase of 170% over the three years.

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