Business
Gfinity to exit Australian joint venture
Gfinity to exit Australian joint venture.
About this update from Gfinity Plc
[{"type":"text","content":"\n \nRNS Number : 9453I Gfinity PLC 14 August 2019 \n\nThe information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\") and with the publication of this announcement, this information is now considered to be in the public domain.\n \n14 August 2019\n \n \nGFINITY PLC\n(\"Gfinity\" or the \"Company\")\n \nGFINITY TO EXIT AUSTRALIAN JOINT VENTURE\n \nGfinity plc (AIM: GFIN), a world-leading esports solutions provider, announces that its Australian joint venture, Gfinity Esports Australia, will close at the end of November 2019. The decision was taken in conjunction with local partner HT&E (ASX: HT1) and follows a strategic review by Gfinity's leadership to refocus the business on core markets to drive sustainable profit growth and long-term value creation.\n \nGfinity Esports Australia was launched in 2017 and introduced the Gfinity Elite Series into the country. Since launch, the Elite Series has achieved positive results including significant partnership agreements, solid revenue performance and market leading audience figures. However, the business has not reached the required level of profitability and further significant additional capital investment is required to make Gfinity Esports Australia commercially viable. \n \nAll costs relating to Gfinity's investment in the joint venture have been expensed as incurred. As a result, no material financial write off will be required.\n \nFollowing the review of the business, Gfinity has taken the decision to prioritise resources and allocate capital to other key business areas and markets where there are clear and significant growth opportunities. The Company will continue to expand into the US market, with further investment into proprietary and industry leading technology infrastructure. The Company will also continue to invest in its community building activities.\n \nENDS\n \nEnquiries:\n\n\n\nGfinity plc\n\n\n\n\n\n\n\nJohn Clarke\n\n\[email protected]\n\n\n\n\n\n\n\n\n\n\n\n\nTeneo (media)\n\n\n020 7260 2700\n\n\n\n\nCamilla Cunningham\n\n\[email protected]\n\n\n\n\n\n\n\n\n\n\n\n\nAllenby Capital Limited (Nominated Adviser & Joint Broker)\n\n\n0...