Gfinity shares tumble as commercial opportunities fail to materialise

Esports provider Gfinity shares crashed in early trading after the group warned that commercial opportunities had not materialised "as expected" in the second half of the trading year.

Gfinity said results for the six months ended 31 December 2019 remained unchanged and that it still expects to report interim revenues of roughly £3.5m, a gross profit of £2.1m and an adjusted operating loss of £2.4m.

However, the AIM-listed firm said "challenging market conditions" had now been exacerbated by the unprecedented impact of COVID-19 - which had also forced the postponement of all live sporting and esports events.

"Two major events that Gfinity designs and delivers for clients, and due to take place before July 2020, have now been postponed," said the group.

"The company is closely monitoring developments regarding COVID-19 and its ongoing impact on the business and will continue to update the market as appropriate."

As a result, Gfinity now expects that full-year revenues will be lower and adjusted pre-tax losses will be higher than current market expectations.

"In light of all this, the company is pursuing other options for financing in the short term and continues its discussions with several potential strategic investors," Gfinity added.

The group will also undertake a comprehensive strategic review to ensure it remains well-positioned for future growth. Gfinity has also appointed a new chief executive and chairman from within the group.

As of 1010 GMT, Gfinity shares were down 44.94% at 0.47p.