Gfinity has extended its partnership with the global advertising technology platform, Venatus, to drive further value per user across its websites under the Gfinity Digital Media group.
The gaming solutions provider said Gfinity Digital Media group (GDM) said it has seen ‘significant growth’ across its 8 websites which reached more than 15 million unique users in November alone.
The Company explained to investors that today's renewed agreement will see Gfinity continue to benefit from the successful partnership, ‘further accelerating its focus on driving the value per user across its fast-growing websites under the Gfinity Digital Media group (GDM).’
The partnership, which is now in its third year, will see Venatus continue to monetise Gfinity's web platforms and direct campaigns 'which connect with brands and publishers across the gaming community.'
GDM will also continue to leverage audiences across its existing gaming sites, as well as future site acquisitions, which is a core part of its growth strategy, the company explained.
GDM is the foundation of Gfinity's financial model, delivering revenues of £1.6m for the year ended 30 June 2021, up from roughly £0.3m in the previous year. Much of this growth is due to the continued improvement in the annualised value of each monthly user (MAU), it noted.
Across the full year to June 2021, GDM averaged 10.7 million monthly active unique users, delivering average annualised revenue of 15.2p per user, Gfinity highlighted to investors.
The Company noted that Venatus' ability to reach and engage with gamers across a range of devices ‘will help GDM as it focuses on its short-to-medium-term target of driving 50 million MAUs at a target of 30p per MAU, which would generate revenue of £15.0 million per annum.’
John Clarke, Chief Executive of Gfinity, said: "Successful partnerships with gaming experts such as Venatus are helping the GDM to go from strength to strength. We look forward to finding new and innovative ways to authentically engage gamers, driving growth of owned and recurring revenue streams as we target ambitious expansion over the years to come.”
Clarke noted that the company has confidence in its ability to scale both the number of users we attract and the revenue per user, due to the growth that it has seen this year.
Rob Gay, CEO of Venatus said: "We're hugely proud of our ongoing and successful partnership with Gfinity and excited for the future innovations it will bring to Venatus' creative solutions and ad-tech platforms. This extension of our partnership is an opportunity to continue to provide gamers with unique and engaging experiences while driving growth and revenue for a world-leading gaming brand. Our team is excited and energised by the possibilities our partnership creates and we look forward to another successful year."
The esports and gaming solutions provider, which described the year to 30 June 2021 as a period of “strategic delivery”, noted that it was in a position “to grow and monetise at scale.”
At the time, the London-listed firm published its final results for the year ended 30 June 2021 in which it reported a 27% increase in revenue to £5.7m, up from £4.5m in FY20, which it said was driven by a 768% rise in revenue attributed to Gfinity’s owned and co-owned properties.
Gfinity slashed its operating losses over the period by 50% to £2.7m up from a £5.5m loss. In the last quarter of 2020, the company delivered its first ever quarterly adjusted EBITDA profit.
As a result, the Adjusted EBITDA loss, which includes the impact of all gains and losses on associates, reduced to £2.3m, representing a year-on-year reduction of 61% (FY20: £5.8m).
Cash and cash equivalents at year end stood at £1.4m (2020: £1.6m), supplemented by a post year-end over-subscribed fundraiser of £3.3m before costs for targeted acquisition.
In terms of market growth, Gfinity outlined that the gaming market continues to expand with more than 3.2 billion players globally and the industry generating revenue of US$175.8 billion.
Addressing shareholders at the time, the company told investors: “Gaming is here to stay and will continue to grow. Macro trends are working in our favour. Gfinity is now embedded into the gaming ecosystem and is adding value to it through the strategic focus on ‘what we own’.”
“Looking ahead, we are now in a position to grow and monetise at scale. Despite ongoing uncertainty around Covid-19, macro trends around gaming are attractive and we remain focused on delivering against our strategy,” said Gfinity’s Chief Executive, John Clarke.
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