Gfinity Share Discussion Threads

[demonboy] 04/6/2020 20:51

https://tech.eu/brief/danish-esports-entertainment-startup-blast-secures-e12-5-million-to-scale-up/

[global nomad] 04/6/2020 07:49

more good news...

[lukehold] 04/6/2020 07:29

Looks a better model... exciting times for gfinity

[mcfly79] 27/5/2020 14:58

Gfinity CEO on CNBC:hTTps://www.cnbc.com/video/2020/05/26/competitive-gaming-seeing-significant-growth-amid-pandemic-gfinity.html

[mcfly79] 27/5/2020 08:45

Large media platforms have even higher valuations per user:

Reddit: $9.09
Twitch: $10
Discord: $10

[mcfly79] 27/5/2020 08:33

Gfinity’s 10 million+ website users are hugely valuable.


Gfinity are modelling their Digital Media business on Future plc. Future plc run specialists websites and also have physical magazines. They recently announced their H1 results to 31 March 2020.


I’ve looked at how much Future plc makes from each user and how much each user is valued at.


Future plc had revenues of £144m for the half year, of which £115m came from their digital sites and £29m came from magazines.


They had an average of 253m online users in H1 and ended the half year with a record 329m online users in March 2020.


Therefore they achieved revenue of £0.45 per user in the half year, equivalent to £0.9 per user per annum.


Applying this to Gfinity’s 10m+ users equates to £9m in annual revenue! (and at high margins).


Future plc is valued at £1.23bn. 80% of revenue comes from their websites and this is at a higher margin than magazines so I think it’s fair to attribute 80% of the market cap value to the website side of the business. So that’s about a £980m valuations for the 329 millions online users at the end of March, or about £3 per user.


Applying this to Gfin would equate to £30m of value for the 10m+ user base. That’s over 4p per share, before any value for the other significant parts of Gfinity’s business.

[sideshowbull] 26/5/2020 19:05

Have GFIN dropped BIRD as their codec solution and cloud editing package?


Nobody will give me a yes or no?

Is my BIRD making money on the back of my BOY?


BWTFDIK

[mcfly79] 26/5/2020 16:11

Podcast today:hTTps://audioboom.com/posts/7591277-reabold-resources-gfinity-bahamas-petroleum-and-glen-goodman£2m revenue next year from new digital media business is a conservative figures.Modelling the digital media business on Future plc.

[mcfly79] 26/5/2020 12:10

Don't think this was posted. Proactive interview after F1 deal:hTTps://youtu.be/zWdUuph0Q10Interesting that they are now working with the F1 commercial team, looking at opportunities for additional esports sponsors. First time they've done this in partnership with F1.Nice closing remarks. 'commercial pipeline has never been stronger'.

[czar] 26/5/2020 12:04

Yes there seems a long tail of sellers that got stock around 1p. When they have sold out it must jump straight through 2p. Actually I'm looking for 10p as first base.

[global nomad] 26/5/2020 08:02

looking for sustained move above 2p this week.

[czar] 26/5/2020 07:16

This is only a £12m market cap business, I can't believe it, if this IPO'd now it would be 10x that value, if this was listed in the US it would be 50x. This is a gift imho!

[global nomad] 26/5/2020 07:16

nice RNS to start the delayed week..revenue streams being developed and supported, 10m users, 31m impressions in a month, thats a lot of eyes watching and using, for advertisers and new modes, like programmatic ads through their new partners Bidstack...

[tenapen] 22/5/2020 07:54

Thanks All.

Good Luck.

[mcfly79] 21/5/2020 22:47

In today's Times Business section there is a photo of Aguero racing in the virtual GP and it mentions Gfinity.

[lukehold] 21/5/2020 22:46

Thanks mcfly. I see the very high margins coming from ditching Adsense on the sites and monetising via the bidstack ad console and Venatus Media. It will be interesting to see how these site campaigns take shape and if they reach in game with F1, grid and Fifa.

[lukehold] 21/5/2020 21:27

https://www.enthusiastgaming.com/wp-content/uploads/2019/08/Enthusiast-Investor-Presentation_August-Final.pdf p15

[lukehold] 21/5/2020 21:23

Look at the value per user base model

[lukehold] 21/5/2020 21:22

You could do with looking at some comparable business like eglx..

[lukehold] 21/5/2020 21:21

Hi tenapen Can you suggest a better value esports company in the uk, us or Canada?

[thirty fifty twenty] 21/5/2020 21:10

hi tenapen - I don't think you were asking me, but if I may give my opinion.

I think you are missing the point to be so focused on the F1 contract value.
this is (possibly) a business in development.
like the truest sense of the word investment it is about investing now and reaping the rewards in future years.

we know that costs are c.3.5m a year. we know that they are currently lose-making but have said they will reach break-even by end of the year. thus revenue from all contracts are c.3.5m! the big value is in the gaming sites.. they have 40m users hits in April from pretty much a standing start..... so if they are the 'go-to' site for gamers who have an average spend of >£200 a year per person on gaming bits and pieces that is a value website to own.

F1 and the other esports are effectively the loss leaders for them to build the network of gamers. so for me it is not about the F1 contract at all (except that it stops the CASH outflow), but it is about those websites for GFIN to generate additional revenue and profits in the years ahead.

you can have whatever forecast you want for that as it is all speculation, but certainly the recent evidence from general knowledge, talking to people and the RNS's is that there is a LOT of activity in this space at the moment and the more activity the more likely that GFIN will have sticky and recurring gamers to moentise.

just my view and why it is in my portfolio as a good risk/reward,
very much backed up with a positive chart pattern (esp if they get > 2p).
I've met the mgt and realise it is a long term investment that will be volatile and may turn out to be a damp squid too.

All IMHO, DYOR + BoL
GFIN is in my portfolio

[mcfly79] 21/5/2020 21:02

We don't know the figures for individual contracts.


What we have been told is that the company's own community franchise websites (RealSport101.com, Gfinityesports.com etc) will start contributing now that they are being monetised and they are aiming for £2m a year in revenue.


This revenue will be adverting, promotions and site takeovers and will be at very high margins (I think the staff cost in managing these websites will be part of the £2.4m existing cost base).


Therefore this revenue alone will cover a lot of the £2.4m cost base, before income from all other parts of the business (F1, motorsports and building communities for other companies). It won't take too much gross margin on the esports events to create a very good profit vs market cap.


What's really interesting is that they are now signing contracts (like the BT Sports contract) where there are partnering, rather than just providing fixed fee services. This has the potential for far higher profit.

[tenapen] 21/5/2020 20:25

What is the F1 contract worth ?

If you can't tell me, which you can't, how do you value the company as they never give any hint of financial details.

The basics, and this is why the gfin share price hasn't reflected the recent 'headline grabbing' RNS statement's.