Gfinity (AIM: GFIN) - bonkers valuation of the week?
Gfinity, the esports business, which has just announced its half year results and news of another fund raise, is this week’s ‘bonkers valuation of the week’. We appreciate that esports has huge growth potential but it’s not clear to us how this small, UK based operator is best placed (and funded) to succeed.
The interim results from Gfinity (AIM:GFIN) lead with the statement that how, during the six-month period to 31 December 2017, Gfinity made significant strategic progress and gained strong momentum against its objective of creating a world leading esports business. The Group indeed had a busy period launching a host of new events, forging new partnerships and acquiring provider of technology and services to the esports industry. However, this has resulted in revenues of only £1.8m for the period and a staggering £7.7m loss. Revenues were admittedly up over 100% but that was from a very low base. While cash at…