Gfinity losses widen despite strong revenue growth

E-sports tournament organiser Gfinity's full year results remained spattered in red despite a period of strong revenue growth in the rapidly developing sector.

Revenues increased 82% to £4.3m in the year ended 30 June as a result of growth in its managed services wing and its three Gfinity Elite Series competitions, but pre-tax losses widened a total of 158% to £12.5m. Loses per share doubled to 0.06p.

Gfinity, which partnered with Formula 1 and Codemasters to launch a Formula 1 e-sports series to add to managed events for Microsoft and in partnership with EA, said the increased loss was a result of a planned investment into its people, products and technologies.

Cost of sales ballooned 179% to £7.73m and admin expenses totalled £10.03m - more than double the £4.93m recorded a year earlier. Cash and equivalents slipped 17% to £3.7m.

Executive chairman Garry Cook, said: "It has been an exciting year for the company. We have further strengthened the foundations of our business by continuing to invest in our strategic priorities to generate future revenue growth."

In the coming financial year he said Gfinity "will continue to focus on delivering an innovative tournament series, creating and hosting partner events, building our digital 'Tribe' community" on the "pathway to significant revenue growth".

As of 1200 GMT, Gfinity shares had dipped 1.82% to 8.10p.