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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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June 27 2019

MTI Wireless Edge (LON:MWE) recently announced the acquisition of a 50% stake in Parkland Australia, a value added reseller of MTI's smart irrigation systems.

We are increasing our revenue and earnings per share (EPS) forecasts by 1% for 2019e and 2% for 2020e to reflect the acquisition (table on p2 summarises).

Strategically, the acquisition expands MTI's presence in Australia, a major global market for smart irrigation. We believe that the largest markets for MTI in the irrigation space currently are Israel, North America, South Africa, and China, with Australia adding a potentially significant new avenue for growth.

We understand that the overall progress of the group remains firmly on track for 2019e. We are maintaining forecasts for revenue growth of 10%, and EPS growth of 26%. Furthermore, we continue to expect an increase in the dividend, representing a dividend yield of 5.7%, and a strong net cash position on the balance sheet.

Revenue growth is driven by positive performance across all three operating divisions. We provide a summary of the three businesses on p2.

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May 23 2019

MTI Wireless Edge (LON:MWE) has reported results for the first quarter (Q1) of 2019, showing continued strong progress. Revenues increased by 16% year-on-year and operating profits 66%. We maintain our full-year (FY) 2019 forecasts, with FY revenue growth of 10% and earnings per share (EPS) growth 27.8%.

All comparisons are on a pro-forma basis to include a full year of MTI Computers revenue in the prior year.

At the time of the merger between MTI Wireless Edge and MTI Computers in August 2018, the company forecast strong demand across each of its business segments. These expectations have been borne out in Q1.

Water Solutions: Demand remains strong globally for smart irrigation systems. During the quarter, the business secured its largest ever order, a breakthrough order for irrigation control systems into the Chinese market.

Antennas: Demand drivers include 5G wireless infrastructure in the civil communications sector and increasing budgets among major military customers. The outlook remains positive.

Distribution & Professional Consulting Services: Revenue for the division grew very strongly in the quarter as previously announced projects matured into revenue generation. A new order for aerostat systems (now included in this segment) will deliver revenues in the coming quarters.

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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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