Gfinity Plc · LSE:GFIN
Gfinity — FY2019 Earnings Presentation
21 slides from Gfinity's earnings presentation, October 2019
Slide 1: A Leading International Esports Business: Full Year 2019 Results
A Leading International Esports Business Full Year 2019 Results PREPARED BY GFINITY OCTOBER 2019 1 Gfinity Esports
Slide 2: Contents
Contents 01 Strategic and Operational Review - A transformational year - Driving growth through ‘Strategic Client Management’ - Creating a scalable platform for further growth 02 Financial Review - Financial highlights - A step change in revenue and gross profit - Leveraging scalable cost base - Fin
Slide 3: Strategic & Operational Review
Strategic & Operational Review Garry Cook - Executive Chairman 01 3 Gfinity Esports
Slide 4: A transformational year
A transformational year Strategic and Operational Financial • Strengthened position as a market leader in rapidly growing esports • Revenue growth above 80% for the second consecutive year sector • Gross profit of £1.0m (2018: loss of £3.4m), driven by strategic focus • Refocused business on Strateg
Slide 5: Driving Growth Through Strategic Client Management
Driving Growth Through Strategic Client Management • Completed season 2 of Formula 1 Esports • Appointed tournament operator for inaugural Pro Series ePremier League programme - Contracted to deliver 3rd season of - Incremental services provided to a number of growing Pro-Series programme in 2019 cl
Slide 6: Creating a scalable platform for further growth
Creating a scalable platform for further growth Realignment of cost base. Investment in; consumer insight, community building and commercial resource, delivered with no increase in underlying month on month costs Focus on product offerings which provide opportunities for scalable, strong margin grow
Slide 7: Financial Review
Financial Review Jonathan Hall - Chief Financial Officer 02 7 Gfinity Esports
Slide 8: Financial highlights
Financial highlights FY19 FY18 Change (£M) (£M) (£M) -- Significant revenue growth; second consecutive Revenue 7.9 4.3 +3.6 year of +80% -- Driving growth in higher margin revenue streams Cost of sales (6.8) (7.7) +0.9 -- Gross profit positive at £1.0m -- Maintained cost discipline, refocusing resou
Slide 9: A step change in revenue and gross profit
A step change in revenue and gross profit Focus on strategic client management... Community ...driving gross profit growth Partner service delivery Owned content/ shared rights Consulting fees Community income Service Delivery £1.0m 2% +8 Owned Content 2% +8 7.9m (£0.4m) 4.3m Consultancy 2.7m (£3.4m
Slide 10: Leveraging scalable cost base
Leveraging scalable cost base Stable Opex -- Opex largely fixed as already invested in people, products and technology -- Costs broadly stable despite significant business 9.6 8.7 growth 4.6 -- Reprioritisation of resources to areas driving greatest strategic value: 2017 2018 2019 o Investment in co
Slide 11: Financial position & cash
Financial position & cash 2019 2018 (£M) (£M) PPE 0.5 0.8 -- Closing cash balance of £0.6m supplemented by oversubscribed fundraise post year end to raise a Goodwill 2.5 2.5 further £5.25m (gross) Intangible fixed assets 1.0 2.1 -- Year-end cash position impacted by timing differences, reversed in J
Slide 12: Outlook
Outlook Graham Wallace - Chief Executive Officer 03 12 Gfinity Esports
Slide 13: Monetising multiple revenue streams in a rapidly growing market
Monetising multiple revenue streams in a rapidly growing market ESTABLISHED AND HIGH GROWTH MARKET CONNECTING KEY STAKEHOLDERS Publishers 2.2 BILLION 737 People globally who play The number of major video games global Esports events Media Sports Rights Holders 32% $151 MILLION $1.80 BILLION Global E
Slide 14: Gfinity: what we do
Gfinity: what we do What We Do Esports Solutions Creating long term, new business verticals in the virtual world Strategic Client Management Our Approach Design; Develop; Deliver Competitive Online/offline Live & ancillary Build community & Advisory What We Deliver Tournament gaming competitions con
Slide 15: Evolution of financial model
Evolution of financial model Service Provision Partnership Model Gfinity contracted to create solution. Business client monetises Gfinity and partners own/co-own, create IP. Monetise and share commercial rights Rights Holders Esports Solution Publishers Brands Publishers Rights Brands Holders Esport
Slide 16: Building an engaged Gfinity community
Building an engaged Gfinity community • Created Gfinity Media Distribution Channel (MDC) to compete favourably with other gaming titles • Centred on gamer insights; built by team of passionate gamers Website; Facebook; Instagram; Twitter. Primary audience: • Esports enthusiasts Future Content Revenu
Slide 17: Summary
Summary Connecting major publishers, rights holders, brands and media companies to an engaged global audience of 900 million Trusted partner to some of world’s most recognised brands End to end esports solution capability, underpinned by quality of people, processes and proprietary esports technolog
Slide 18: Appendix
Appendix 18
Slide 19: Senior Leadership Team
Senior Leadership Team Garry Graham Graham Jonathan John Wallace Cook Wallace Hall Clarke EXECUTIVE CHAIRMAN CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER GLOBAL BRAND & MARCOMNS OFFICER P R E V I O U S LY P R E V I O U S LY P R E V I O U S LY P R E V I O U S LY GLOBAL BRAND OFFICER MTV Heineken S
Slide 20: Case Study - Igniting a motorsports esports revolution
Case Study - Igniting a motorsports esports revolution Formula 1 Esports Motorsport Opportunities The Future 1.1bn number of motorsport fans 275 million gamers love motorsports Portfolio of global solutions targeting younger 3 seasons designed, developed and delivered by Design, develop and deliver
Slide 21: Case Study - Igniting a football esports revolution
Case Study - Igniting a football esports revolution EA Sports FIFA Other Football The Future 675 million gamers who love football Multi-year relationship, growing 4x since inception Bridging the gap to 3.5bn soccer fans World class delivery of an increasing number publisher owned esports programme P