Gfinity expands partnership with global ad firm Venatus
(GFIN ) has expanded its existing partnership with the global advertising technology platform, Venatus, where the Group will continue to monetise Gfinity's web platforms.
The agreement is the latest in a series of strategic partnerships under Gfinity's publishing platform, Gfinity Digital Media (GDM), which is on track to deliver revenues of £2m in FY21.
Formed in May 2020, GDM delivered £1m of revenue in the first half of the financial year 2021. Gfinity said the extended partnership reflects its wider strategy to accelerate growth across the GDM group by collaborating with valuable partners across the gaming ecosystem.
Under the new agreement Venatus will continue to monetise Gfinity's web platforms, extending its remit to include most of the group's fast-growing websites, Gfinity noted.
The partnership will extend to all of GDM's websites, excluding EpicStream. This includes RacingGames.gg which has grown from 1,000 to 120,000 users since November and MTGRocks.com which has attracted over 200,000 monthly fans since its launch in February 2021.
Venatus has said it will continue to support the monetisation of new websites in the GDM network through advertising space and connecting publishers and brands with gamers and esports enthusiasts.
"We are delighted to announce the expansion of our relationship with Venatus to drive engagement across some of our fast-growing websites,” said Gfinity’s CEO, John Clarke.
He added, “GDM continues to deliver against our key strategic pillar of "what we own", collaborating with some of the most innovative names in the digital gaming space, sharing expertise and technology to cross-sell to an ever-growing community of gamers."
"We're excited to expand our global relationship with Gfinity as the sole monetization partner across their growing portfolio of gaming sites. Since launching our partnership in March 2020, Venatus has delivered direct and programmatic campaigns for some of the world's biggest brands,” commented Rob Gay, Chief Executive of Venatus.
He added, “The Gfinity brand is a huge asset to Venatus as a trusted brand within the esports space, offering high performance across various creative formats. We look forward to continuing our partnership, bringing new clients to these gaming and esports channels."
Today’s news is the latest in a string of strategic partnerships secured and follows Gfinity’s recent 1H21 results which highlighted the improved financial trading in the six month period following the news that it had recorded its first ever quarterly positive adj EBITDA.
Shares in the Gfinity have increased by over 15% in value since the beginning of the year. The stock was trading 2.86% higher this morning at 4.32p following the announcement.
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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