LONDON: Gfinity plc has announced that its Australian joint venture, Gfinity Esports Australia, will close at the end of November 2019, a release issued to London Stock Exchange noted.
The decision was taken in conjunction with local partner HT&E 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.
Gfinity plc is a world-leading esports solutions provider. Gfinity 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.
All 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.
Following 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.