Business
Disposal and Business Update
Disposal and Business Update.
About this update from Gfinity Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT AND THE INFORMATION HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE, TRANSMISSION, DISTRIBUTION OR FORWARDING DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, TRANSMISSION, RELEASE, DISTRIBUTION OR FORWARDING WOULD BE UNLAWFUL.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. \n06 June 2023\nGfinity PLC\n \n(\"Gfinity\", the \"Company\" or the \"Group\") \n \nDisposal and Business Update\n \n \nThe Board of Gfinity plc (AIM:GFIN), a leading technology and media company in the video gaming industry, today announces the divestment of 72.5% of Athlos, a subsidiary of the Company, to Tourbillon Group UK Limited. All future liabilities associated with Athlos will be assumed by Tourbillon, with the buyer also providing growth capital to support the business moving forward.\nAlongside the funding, Tourbillon brings an experienced management team who have the capability to take the business to the next stage of its development. Gfinity will retain a 27.5% shareholding in Athlos. The consideration payable to Gfinity by Tourbillon is £1. \nIn the year to December 2022, Athlos generated revenue of £0.4m, with a loss before tax of £0.5m. If capitalised development expenditure is added back, the loss before tax was £1.2m. The net assets of Athlos as at December 2022 was £1.2m. In the 12 months to the end of May 2023, Athlos has absorbed £1.5m of Group cash. The divestment therefore significantly reduces the cash burn of the Company.\nThe Company also today announces that it is closing down its Esports division, as the market for esports remains soft and the directors see limited profitable growth opportunities. \nThe above restructuring will allow the Company to focus on digital media and its significant position in the Gamer website industry. After a large dip in users in 2022 due to some adverse market impacts including changes in the Google Search Engine, the Company has performed a round of cost cuts and improvements in it content as it streamlines the Editorial team and makes strategic hires in SEO and tech, to increase user numbers. Part of this plan includes the deployment of AI automation tools to reduce the cost of specif...