Gfinity has taken drastic steps in the pursuit of profitability by selling a 73% stake in their Athlos subsidary for £1 and closing down their esports business. The company will now focus on their gaming websites business.
To help acheive proftibaility, the company is also slashing costs across their media business by streamlining their editorial team and implementing AI.
Gfinity now believes their monthly cost base will be £185k per month, down from £600k in H1 2023. The company said they see EBITDA profitbility in the near-term.
“This has been a difficult year for Digital Media with the Company having losses across all verticals, however after a significant re-structuring, we are confident that Gfinity will flourish without the requirement to raise further working capital,” said Gfinity Chairman, Neville Upton.
“By focussing on our core web offering for Gamers, we are able to remove the capital intensive businesses of software development and esports events, and focus on returning to a positive return on investment. We will update the shareholders shortly on a more detailed strategy.”
Gfinity shares were down 27% at the time of writing.