Gfinity (GFIN) a leading esports and gaming solutions provider today announced the launch of Athlos Game Technologies.
Athlos provides its clients with a tournament-based platform that leverages the power of competitive gaming to deepen player engagement, lower player churn, and increase average revenue per user (ARPU).
The launch of Athlos is an important strategic step in Gfinity’s development for 3 reasons:
1. More Revenue: It adds another leg to their revenue generating operations alongside their existing digital media business, shared partnerships in esports tournaments and esport service provisions.
2. Recurring revenue: Athlos is sold on a software-as-a-service model (SAAS) meaning there’s greater visibility over future earnings which investors like, meaning a potential higher valuation rating for the company.
3. Owned IP: The intellectual property behind this technology is 100% owned by Gfinity and could be very lucrative for them as in-game, live-service revenues are a key focus of the industry. It amounts to $127bn a year, more than double the value of up-front game sales revenues.
Tried & Tested
Also important to note that this technology has been in beta test mode for over a year, with some of the biggest global brands, and even recently the product has been used 73 million times in the last 30 days.
Gfinity also states that “Athlos has a growing number of clients on recurring annual contracts and a strong pipeline of prospective future clients”.
New Appointment
Alongside this launch, Gfinity also announced the appointment of Todd Sitrin as a strategic advisor to the Athlos leadership team.
Todd is a video game veteran with more than thirty years of experience and global leadership in interactive and linear entertainment, esports, media, sports, and technology.
He has launched and supported hundreds of live service and traditional games as well as led critical, strategic growth initiatives at Electronic Arts for 20 years, most recently as the Senior Vice President & General Manager of EA's Competitive Gaming Entertainment.
Todd's experience spans many of the world's leading games including FIFA, Apex Legends, Madden NFL, The Sims and Battlefield.
Financials
On the financial side Gfinity raised £2.70 million in March at a price of 1.25p alongside one warrant for every share subscribed for, which they said at the time provides them with a “pathway to profitability in 2023 and beyond”.
Current broker forecasts see them generating £10.5 million of revenue for this year and achieving £2.3 million of adjusted EBITDA & £2 million of adjusted profit before tax.
Valuation
Currently Gfinity’s market capitalisation is around £15m, with circa £3m of cash and no debt leaving them with an enterprise value of approximately £12m.