John Hall of Gfinity discusses their interims & confirms target of reaching profitability by 2023

John Hall, Chief Finance and Operations Officer of Gfinity #GFIN discusses their interim results, which saw revenue of £3.3m, a 22% improvement on previous 6 months and costs reduce by 53% confirming they are on target of reaching profitability by 2023.

Financial Highlights

· Continued improvement in financial performance through sustained strategic focus on what the Company owns, with Gfinity Digital Media ('GDM') driving growth in the business.

· Revenue of £3.3m, an increase of 8% year on year (H1 21: £3.0m) and 22% improvement on previous 6 months (H2 21: £2.7m).

· Adjusted operating loss of £0.4m, 53% improvement year on year (H1 21: £0.9m loss) and 76% improvement on previous 6 months (H2 21: £1.8m loss) as the business continues on its path towards profitability.

· Reduction in Adjusted administrative expenses of 4% to £2.4m (H1 21: £2.5m).

· Business well capitalised to continue to deliver on its objectives following successful fundraising, underlining confidence in the Company's long-term performance.

Operational Highlights

Strategic focus on 'what we own' delivering improved financial performance and growth

Gfinity Digital Media:

· Continued growth of publishing platform, with revenues up 62% year on year to £1.6m (H1 21: £1.0m) driven by increased annualised revenue per user of 23.3p (up 31% year on year) and 23% rise in Average Monthly Active Users to 13.9m.

· 43% year on year improvement in Gross profit to £1.0m. Clear profitable growth engine that is driving the continuation of the Group's pathway to profitability.

· Successful acquisitions of SiegeGG, including technology behind leading statistical analysis of Rainbow Six Siege video game, and Stock Informer which contributed £0.4m of revenue between acquisition completion on 13 September 2021 and 31 December 2021.

· Renewed agreement to extend Gfinity's partnership with global advertising technology platform Venatus into its third year, driving value per user growth.

· Significant progress in optimising site infrastructure and performance, utilising the Company's proprietary manifold content management system (CMS), leading to strong user numbers in the second half, with a record 16m monthly active users across GDM platforms in February.