Gfinity Esports1
A Leading International Esports Business
PREPARED BY GFINITY NOVEMBER 2019
Gfinity Esports2
Key investment highlights
01
0403
02A leading international esports business
Trusted independent esports partner
Leverage and create value with partners
Revamped growth strategy delivering
Gfinity Esports3 Gfinity Esports3
Growth of esports, fuelled by digitisation mega trend
1972
1st official video game competition - Spacewar
1980
Atari Space Invaders Championship
1981
Twin Galaxies formed – tracked top players scores on Space Invaders & Donkey Kong
1996
Battle by the Bay, first major Street Fighter tournament
2000’s
Explosion of internet cafes
2009
League of Legends launched 2010-12
Starcraft II, DOTA2, Counter Strike launched
2012
Gfinity founded 2017
F1 esports first full season
2019
Inaugural ePremier League
1997
Quake’s Red Annihilation, 2000+ entrants
Cyberathlete Professional League founded
2004
First FIFA Interactive World Cup 2010
Growth of Multi-player Online Battle Arena MOBA games
2011
Twitch founded
2014
Twitch acquired for $970m by Amazon
2018
Overwatch League media rights $45m
Dec ‘9516m internet
users
Dec ‘051,018m internet users
Dec ‘153,366m
internet users
March ‘194,383m internet
Fnatic, Team Dignitas, Optic Gaming, SK Telecom T1 and TSM esports teams founded
Gfinity Esports4
2.2 BILLION
People globally who play
video games
Large and growing global audience and market
2017 2018 2019e 2020e 2021e 2022e0
100
200
300
400
500
600
143
192
222
335
395
454
518
580
645
253
285
316
347
173 201 233 264 297
m
Esports enthusiasts Occasional viewers
0
30
60
90
120
150
180
USDm
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
6 3 5 9 1319
36
61
93
112
151
0
200
400
600
800
1000
1,200
1,400
1,600
1,800
2,000
2,200
USDm
2017 2018 2019e 2020e 2021e 2022e
Dedicated esports fan growth Prize money development Esports revenue growth
Media rights
Merch & tickets
Advertising Sponsorships Publisher fee
655865
1,096
1,3401,566
1,79072
823
231
161
501
395 MILLION
Global number of players
& enthusiasts in
2018
737
The number of major
global Esports events
in 2018
$151 MILLION
Prize money broke
$150 million mark for the
first time in 2018
$1.80 BILLION
Projected Esports
revenue by 2022
32%
Global Esports revenue
increase during 2018
Gfinity Esports5 Gfinity Esports5
Consumer always decides
SPENDMOBILE
EXPOSURE
PLAY WATCH
TALK
MOTIVATION
SOCIALISTA49%
ATHLETE4%
CONTROLLER21%
ASPIRER18%
WATCHER8%
Complex consumer landscape
• 900 million esports and competitive gaming engaged consumers
• Not a homogenous group
Proprietary solutions to generate long term sustainable value for the wider audience beyond smaller group of hardcore fans:
- insights led- targeted - clear vision of behaviours and motivations
*Consumer segmentation/definition proprietary to Gfinity
900 Million
Gfinity Esports6
Sports Rights Holders
Brands
Gfinity Esports6
Gfinity uniquely positioned in fragmented esports ecosystem
Consumers
Media
In a world of co-dependency Gfinity’s value is unparalleled in creating compelling experiences for next generation of digital consumers
The fragmented ecosystem requires end-to-end esports solution to build large sustainable new revenue streams. Gfinity delivers this:
Esports platform and expertise that drives engagement and profitability
Publishers
Access to proven esports and entertainment formats engaging a young audience
Media
Solutions that future proof franchise, connecting with valuable and hard to reachdemographic
Sports Rights Holders
Solutions that deliver memorable experiences, connects to hard to reach younger consumers
Ability to play, compete, be part of communities, and be entertained by engagingcontent
Brands
Consumers
Publishers
Gfinity Esports7 Gfinity Esports7
What we do
Esports Solutions
Strategic Client Management Design; Develop; Deliver
What We Do
Our Approach
What We Deliver
Our Difference
Online/offlinecompetitions Tournament Live & ancillary
content
Competitive gaming
entertainment
Build community &engagement
Holistic solution development
Consumer insights
Proprietary tech platform Tribe World class
production
Creating long term, new business verticals in the virtual world
Advisory services
Long term value creation
Gfinity Esports8 Gfinity Esports8
Opportunity - evolution of financial model
Monetisation Of Esports Solutions
Other RevenuesMedia Rights AdvertisingSponsorship
Service Provision Partnership Model
Esports Solution
Publishers Rights Holders
Brands
Esports Solution
Publishers
Rights Holders
Brands
Gfinity contracted to create solution. Business client monetises Gfinity and partners own/co-own, create IP. Monetise and share commercial rights
Tickets, merch, virtual items, subscription
Gfinity Esports9
Significant growth over past year driven through Strategic Client Management
9
• *Delivered celebrity-based Twitch Prime Crown
Cup on behalf of Amazon
• Completed season 2 of Formula 1 Esports
Pro Series
- Contracted to deliver 3rd season of
growing Pro-Series programme in 2019
- Appointed production partner for ‘Making
an Esports Champion’ online TV Series*
• Appointed tournament operator for inaugural
ePremier League programme
- Incremental services provided to a number of
clubs including Liverpool, Tottenham Hotspur
and Chelsea
- Reappointed for second season of programme
in 2019/20*
• Partner to EA SPORTS™ for 5 events as part
of FIFA 19 Global Series • Delivered all tournament operation services in
respect of Forza Racing Championship global
esports programme and European leg of Halo
Championship Series, on behalf of Microsoft
• Engaged by IndyCar to provide strategic
consultancy to develop an esports strategy
• Engaged by Truxtun Capital to design and
develop Esports programme in conjunction with
State of Qatar to coincide with 2022 FIFA World
Cup’
• Broadcast rights contract with Facebook
and headline sponsorship with Dominos for
Season 4 of Gfinity Elite series
• Delivered Europe’s largest ever Call of Duty
event from Copperbox arena in conjunction
with Activision Blizzard
• Created Esports content series on behalf of
HP Omen
*Denotes 2019/20 activites
Gfinity Esports10
Delivering a step change in revenue and gross profit
- Grown size and number of strategic clients
- Deepened existing client relationships
- Delivering consultancy programmes for new partners
- Leveraging our investments in people, products and technology
- Building Gfinity community
- Focused deployment of resources to value add areas
FY17 FY18 FY19 Medium Term
Focus on strategic client management...
+82%
+82%
...driving gross profit growth
FY17 FY18 FY19
Partner service delivery Owned content/ shared rights
Consulting fees Community income
Community
Service Delivery
Owned Content
Consultancy
2.7m
4.3m
7.9m
(£0.4m)
(£3.4m)
£1.0m
Medium Term
Charts are for illustrative purposes only and not to scale
Gfinity Esports11
Leveraging scalable cost base
- Opex largely fixed as already invested in people, products and technology
- Costs broadly stable despite significant business growth
- Reprioritisation of resources to areas driving greatest strategic value:
o Investment in commercial capability, community and proprietary technology
- Medium term opex in £10m to £12m range
Stable Opex
2017 2018 2019
2017 2018 2019
4.6
8.79.6
Revenue Growth
Operating Cost Growth
Gfinity Esports12 Gfinity Esports12
Building an engaged Gfinity community• Created Gfinity Media Distribution Channel (MDC) to compete favourably with other gaming titles • Centred on gamer insights; built by team of passionate gamers
3 year ambition: 100 million gamers/mth organically reached; 25 publisher and brand partners; significant source of future revenue
REALSPORT
• Organic• News • Opinions • Tutorials • Video & podcast • Long-form shows• Collaborations
Content Revenue streams
• Ad-serving• Website ‘takeovers’• Social asset ‘takeovers’ • Organic community
build consultancy
Future
• More games• More writers• More languages• More creative
formats• More commercial
partners•
•
Website; Facebook; Instagram; Twitter.Primary audience: • Esports enthusiasts
Website; Facebook; Instagram; Twitter.Primary audience: • Casual gamers
Gfinity Esports13
Senior Leadership Team
GrahamWallace
BryanHealy
PaulKent
AmandaLawson
JonathanHall
CHIEF EXECUTIVE OFFICER
GLOBAL HEAD OF CLIENT SERVICESGLOBAL HEAD OF ESPORTS SOLUTIONS
P R E V I O U S LY
P R E V I O U S LYC O M P E T I T I V E G A M I N G P R E V I O U S LY
P R E V I O U S LY
MTV
Manchester City FCGlasgow Rangers FC
UFCWMGFIFA 2010 World Cup
20+ Years Experience in designing Esports solutions
UFC
ITV Sport
Saracens RFC
PA Consulting
Arthur Andersen
GLOBAL HEAD OF CONTENT
CHIEF FINANCIAL OFFICER
IMG
P R E V I O U S LY
HeinekenAmerican Express
GLOBAL BRAND & MARCOMNS OFFICER
John Clarke
Burson-Marsteller PR
GrahamWallaceEXECUTIVE CHAIRMAN
P R E V I O U S LY
GLOBAL BRAND OFFICER
UFC
Manchester City
Garry Cook
CHIEF EXECUTIVE OFFICER
P R E S I D E N T
Michael Jordan Brand, NIKE
Gfinity Esports14
Summary
Connecting major publishers, rights holders, brands and media companies to an engaged global audience of 900 million
Trusted partner to some of world’s most recognised brands
End to end esports solution capability, underpinned by quality of people, processes and proprietary esports technology
Reaching 25 million gamers per month via own media distribution channels
Introduction of new leadership team in 2018, delivering on financial commitments
15
Appendix
Gfinity Esports16
Case Study - Igniting a motorsports esports revolution
Formula 1 Esports Motorsport Opportunities The Future
Design, develop and deliver long term strategic
esports solutions
Creating new consumer touch points
Proprietary solution for each rights holder to connect
with young and digital consumers
3 seasons designed, developed and delivered by
Gfinity
Creation of new virtual business vertical
New audience – 70% under the age of 34
1.1bn number of motorsport fans
275 million gamers love motorsports
Portfolio of global solutions targeting younger
audience
Proprietary IP and partner IP bridging the gap
between the real and virtual
Mainstream approach to expand addressable market
and grow number of fans
Gfinity Esports17
Case Study - Igniting a football esports revolution
EA Sports FIFA Other Football The Future
Gfinity designing, developing and delivering solutions
for a growing number of additional football rights
holders
Football clubs and leagues need solutions to address
the next generation fan
Multi-year relationship, growing 4x since inception
World class delivery of an increasing number publisher
owned esports programme
From Service Provision to include limited commercial
rights (tournament sponsorship)
675 million gamers who love football
Bridging the gap to 3.5bn soccer fans
Portfolio of global solutions targeting younger
audience
Leverage strong brands to grow Esports reach and
value
- New competitive gaming entertainment formats:
- Creative partner concepts
- Owned formats (IP) with commercial rights