Gfinity's parent company closes the business after a decline in revenue.
Gfinity Esports Australia will cease operations in November 2019, a press release has today confirmed.
The news comes as Mumbrella reports that HT&E, Gfinity Esports Australia’s parent company, has reported a 4% revenue drop due to a softening radio market. Gfinity Esports Australia itself has been posted as $5.3 million AUD loss on the company’s net investments.
“Esports remains an exciting industry with signficant global interest and activity and HT&E believes it will become a mainstream and significant content-audience-commercial medium in the long term,” Ciaran Davis, Chief Executive of HT&E (Here There & Everywhere), said.
“But our absolute focus is on our core radio business and the economics of esports in the Australian market are yet to deliver sustainable, positive earnings. It is critical our investments deliver value for shareholders and with esports there is no certainty on when a positive contibution might be achieved.”
“We would like to thank all our stakeholders and the Australian esports community for their support over the last few years,” Dominic Remond, CEO of Gfinity Esports Australia, wrote in a statement. “This is a very difficult announcement for all our staff. We will continue to meet our obligations to our existing partners, including Supercars with the upcoming Gfinity Supercars Series, and deliver outstanding events until we close later this year.”
Our best wishes go out to those impacted by today’s news.