Update on performance of Gfinity Digital Media

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

18 August 2020

Gfinity plc

("Gfinity" or the "Company")

Gfinity provides update on performance of Gfinity Digital Media

Gfinity (AIM: GFIN), a world-leading esports and gaming solutions provider, today provides an update on the performance of Gfinity Digital Media. Gfinity continues to grow its user base, whilst increasing its lucrative US audience and adding new partnerships including Steel Series and TopCashBack.

Gfinity Digital Media is one of the fastest-growing revenue streams for the Company.  Since the partnership with Venatus was implemented in mid-April 2020, it had delivered close to £200,000 through on-site advertising by the end of July. In addition, Gfinity Digital Media has been selected to deliver a growing number of repeat advertising campaigns for high-profile publishers, with a strong pipeline of direct campaigns already secured and running in August. For example, following a competitive tender, the Danish gaming peripherals company Steel Series chose the Company's web channels as a location to promote their collection of headsets. The partnership was brokered between Venatus and Gfinity's direct sales team.

The Gfinity Digital Media channels have now been fully optimised for a strong Q4 2020 and Q1 2021 of advertising campaigns and promotions driven by the launch of new consoles, games and peripherals.  The Company has also strengthened its in-house media sales capability, adding a professional with deep experience gained at IGN media sales.

Overall, Gfinity Digital Media is expected to generate revenues of £2 million in the financial year ending 30 June 2021, supporting the Company's target of moving into profitability in Q1 of 2021.

Fifty per cent of the total of Gfinityesports.com audience is now based in the US. This is significant as it contributes to higher advertising revenues across the site. The Company has also strengthened its position in the country with a new US Editor, who has a significant social media following.  This allows for the steady flow of news 24 hours a day, particularly important in Q4.

As part of Gfinity Plus, the Company's reward-based product for Gfinity's online community, the Company also announces it has partnered with TopCashBack to provide deals and offers to the growing community, including discounts on new popular games. In addition, comment functionality is now live, powered by Gfinity Proprietary technology, which will deepen engagement with the audience and inform ecommerce strategy, as well as increasing the number of ad impressions per user due to increased site dwell time.

Gfinity has also started to monetise a large proportion of its social channels, including Facebook.  In July, Gfinity Digital Media reached more than 20 million gamers on Facebook alone, ensuring the Group is in strong position to drive significant revenue through the platform.

Talal Musa, Head of Gfinity Digital Media, said:

"Gfinity Digital Media continues to go from strength-to-strength.  Our sites have become popular destinations for the latest news on a number of games including FIFA, Fortnite, Call of Duty and Minecraft.  We continue to attract increasing numbers of visitors each month, with StealthOptional, our new ecommerce focused site, experiencing a record number of users in July - more than 140,000.  We are well positioned to leverage the opportunities that will come with the new console launches and AAA game releases towards the end of this year.

For brands looking to connect with the hard to reach gamer then all roads lead to the Gfinity Digital Media. Gfinity Digital Media plays a pivotal role in supporting our target of moving into profitability in Q1 of 2021 and we are excited for what is to come".

ENDS

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About Gfinity

Gfinity (AIM: GFIN) is a world leading esports business. Created by gamers for the world's 2.2 billion gamers, Gfinity has a unique understanding of this fast-growing global community. It uses this expertise both to provide advisory services and to design, develop and deliver unparalleled experiences and winning strategies for game publishers, sports rights holders, commercial partners and media companies.

Gfinity connects its partners with the esports community in authentic and innovative ways. This consists of on‑ and off-line competitions and industry‑leading content production. Relationships include EA SPORTS, Activision Blizzard, F1 Esports Series and the Forza Racing Championship.

Gfinity connects directly with competitive gaming consumers through its growing community of gamers on its own platforms: Gfinityesports, RealSport101 and StealthOptional.

All Gfinity services are underpinned by the Company's proprietary technology platform delivering a level playing field for all competitors and supporting scalable multi-format leagues, ladders and knockout competitions.