Gfinity (GFIN ) has signed a commercial agreement with fan engagement platform, IQONIQ, whereby it will become its official esports and gaming partner for the next three years. 

The esports media group said part of the initial focus will be to deliver an exciting new fan-focused tournament on the popular soccer simulation title, eFootball PES 2021. This follows the announcement of IQONIQ's new partnership with gaming publisher, Konami.

Headquartered in Monaco and founded in 2019, IQONIQ exclusively targets the world of sports and entertainment. Since the platform’s launch in September, it has formalised partnerships with rights-holders such as, inter alia, North Carolina FC and AS Monaco.

Gfinity said it will leverage ‘its existing expertise, industry knowledge, relationships, tournament platform technology, and the Gfinity Media Group community’ to support the creation of content and an online gaming hub that will be hosted on the IQONIQ platform.

In return, the Group told investors that it will receive a monthly provision of service fee to provide a range of services including, inter alia, online content production, marketing and promotion, online gaming and tournament play as well as commercial and creative support.

“Commercially this is one of the largest deals in Gfinity's history and the team is ready to deliver outstanding results,” commented John Clarke, Chief Executive Officer of Gfinity.
 
He stated, "The IQONIQ team has built a unique concept that provides fans with a highly personal experience, and we are excited to commence what we hope will be a long-term relationship with IQONIQ, aiding its expansion into esports and gaming.”

Clarke added that this latest partnership was demonstrative of Gfinity's wider strategic focus of working with game changing organisations that have a need for its core capabilities and who are prepared to share commercial upside based on its combined performance.

"This marks the beginning of a fundamental strategic partnership for us, strengthening our position within the esports market. With Gfinity, we have one of the strongest partners possible to further support IQOINQ's growth in the industry,” said IQONIQ Founder and CEO, Kazim Atilla, who said the partnership will also provide support to the IQOINQ app.

“Thanks to this agreement, when launched, the App will play a pivotal role in how fans are able to not only engage with their favourite content, teams, brands, and idols, but also advances the ways in which they'll be rewarded for their continued loyalty on the platform."

Shares in Gfinity have risen by nearly 40% since October 2020. This latest deal follows its announcement last month that it had recorded its first ever quarterly positive adj EBITDA. 

Investors now await for the publication of the group's first-half results for the six months to 31 December 2020 which are anticipated for release during this month. Shares in the esports media Company opened 8.72% higher this morning at 4.24p following the announcement. 

Reasons to Follow GFIN

The esports industry represents an exciting investment opportunity for Gfinity which is the only established UK listed company in the esports sector. In 2018, global esports revenue grew by 38% in value, with a projected esports market value of $1.5 billion by 2020.  
 
In November 2020, Gfinity launched a formal sales process as part of a strategic review which it said will help it continue its pathway towards profitability forecasted for 1Q21.  
 
Gfinity has seen three major progressions with regards to joint ventures and partnerships, including partnerships with BT Sport, ViacomCBS and Abu Dhabi Motorsport Management.   
 
The group said it is on track to deliver target revenues for this financial year of around £2m, leading the Company towards its maiden profit. GFIN is currently technically in an offer period post the announcement of its strategic review on 9 October 2020.  
 
‘While the Company continues on its current pathway towards sustainable profitability, at this point in time it is important to all its stakeholders to ensure that it has explored all strategic options to capitalise on the potential market opportunity,’ GFIN noted.

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