Gfinity is a leading electronic sports (eSports) business that provides a hub for a rapidly expanding global community who compete against or view on-line competitors playing a range of multi-million selling electronic games such as League of Legends, FIFA 2015 and Call of Duty: Advanced Warfare. The Company operates a website where subscribers gain access to information on the video games, watch streamed videos of competitions and themselves compete. This website, gfinity.net, has recently undergone a substantial investment to enhance functionality, which the Directors believe will greatly enhance its reputation within the gaming community and with publishers of the games.
In addition, Gfinity hosts live tournaments and has recently announced a series of events for 2015 which the Directors expect will generate ticket sales, sponsorship and other merchandising income. It is expected that these events will be streamed live on-line, and the Company’s strategy is to build sufficient audiences in order to attract broadcasting income in the future. The Directors believe that the major competitors will be drawn to Gfinity’s events due to the quality of the tournaments, particularly the website, rules and Gfinity’s arena infrastructure.
Gfinity’s objective is to become the leading promoter of eSports events and host of the most popular eSports website in Europe and eventually globally. In conjunction with its event calendar, Gfinity will seek to aggressively expand its registered user base and in turn develop a subscriber model providing subscribers with premium content.
On 11 December 2014, Gfinity entered into a 2 year sales and marketing contract with Pitch, a shareholder in the Company, for Pitch to package and sell sponsorship and broadcasting rights on the Company’s behalf. Pitch is a leading sports marketing agency and distributor of sports media rights worldwide.
Key strengths and future opportunities
The Directors believe that Gfinity has a number of key strengths and future opportunities available which are important to the success of the business:
- reputation amongst professional and recreational gamers;
- technology – website provides a user-friendly point of focus for the gaming community;
- tournament platform – the efficiency of Gfinity’s platform and its scaleability is attractive to gamers;
- strong management team;
- brand ambassadors such as Ali-A and KSI;
- relationship with publishers of games (the Company runs competitions for major publishers including Activision, Blizzard, Electronic Act, Riot and Valve); and
- strong financial position relative to its perceived UK competition.
- eSports is a high growth market which is well placed to take advantage of a large established game playing population;
- a broad range of revenue opportunities; and
- 2015 Schedule provides a springboard for future years.