Gfinity’s Australian operation is shutting down at the end of this year, with its parent company HT&E citing a lack of “sustainable, positive earnings” from the esports league. The business, according to Mumbrella, posted a $5.3 million loss as of June 30 this year.
The esports business will close after the conclusion of the Supercars Eseries, which is scheduled to end on November 24. “While the business has achieved some significant and world-leading results, the economics of esports in the Australian market are yet to deliver sustainable, positive earnings,” HT&E chairman Hamish McLennan said in a media statement.
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Ciaran Davis, Chief Executive of HT&E, echoed said the holding company would focus on the radio industry going forward.
“Our absolute focus is on our core radio business that remains highly cash generative with exceptional margins,” Davis said.
“It is critical our investments deliver value for shareholders and with esports there is no certainty on when a positive contribution might be achieved.”
Gfinity Esports Australia first launched in 2017 and was responsible for building Australia’s first custom esports arena in partnership with Hoyts.
This story is still developing.