(Alliance News) - Gfinity PLC said on Wednesday it expects its full-year revenue to be below market expectations and announced the need for additional funding.
Shares in Gfinity were down 50% at 1.20 pence on Wednesday afternoon in London.
Gfinity expects to report an adjusted operating loss of GBP400,000 in its first half ending December 31, narrowed from a loss of GBP900,000 the previous year. Gfinity's financial year ends June 30.
Revenue for the half is expected to be GBP3.3 million, up 10% from GBP3.0 million year-on-year.
The London-based esports company explained that this figure had been impacted by the decision to consolidate the V10 R League - Gfinity's jointly owned digital motorsport property - into a single season. It added that if the revenue relating to this were eliminated, the year-on-year revenue increase would be 24%.
The company said it expects full-year revenue to be below market expectations due to a slower than anticipated return to live esports events impacting short term revenue and profits.
In addition, Gfinity said that discussions around a partnership in the betting sector is now unlikely to deliver the impact on financial 2022 revenues that originally been anticipated by the company. Though it noted that its long-term prospects for profitability in 2023 and beyond had not changed.
Following the delay in delivery of certain revenue streams, Gfinity said it believed was in the best interests of the company to secure additional funding. As result, it had decided to undertake a fundraise over the next few weeks in order to secure a minimum of GBP1 million.
By Heather Rydings; heatherrydings@alliancenews.com
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Gfinity (GFIN)