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Gfinity makes strong H1 progress

Gfinity makes strong H1 progress

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.

The global esports market continues to exhibit strong growth, with industry revenues to exceed $1bn in 2019. On page 2 we provide an overview of Gfinity's position within this fast-growing end-market. In the results release, Gfinity has confirmed its performance targets: break-even by 2021, gross margin between 30-40% and EBITDA margin of 15-25%. We believe that H1 results are strongly supportive of these targets and indicative of significant potential upside for shareholders.

 
 
 
Full report is available via Capital Network website
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March 06 2019
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February 06 2019
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August 06 2018

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January 25 2019

During the last week, the company has made two significant announcements:

  • The nomination of Moni Borovitz as CEO, from finance director previously, subject to the annual general meeting on 14 March.
  • A share buyback of up to £150k, commencing 28 January

The company came into being in its current form via the August 2018 merger of MTI Wireless Edge with MTI Computers, with Moni Borovitz playing a leading role in delivering the merger.

In this report, we present a reminder of the key dynamics of the merger. We note that since the merger, the share price has yet to stabilise and we believe that the buyback may be helpful in this regard.

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February 06 2019

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.

 

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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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