HT&E is closing its esports arm Gfinity Esports Australia, citing an "unsustainable market" in Australia.
The media company made the announcement in its half yearly results in which it posted a 45% decline in revenue.
Gfinity was first launched in 2017 and while HT&E believes esports will become mainstream, it says the economics of the sector in Australia aren’t yet sustainable.
Gfinitiy will tun until the end of the year, with the Gfinity Supercars Eseries being held in September. The closure of the esports arm means a cost of $5.3 million for HT&E.
Hamish McLennan, HT&E chair, says the company will have a greater focus on its audio strategy.
“We are assessing our existing investments to determine how they can better integrate into audio, and if not, what alternatives are available to deliver better shareholder value,” McLennan says.
“As a result we have decided to close Gfinity Esports Australia in which HT&E holds a 35% effective interest.
“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. We will also consider investment opportunities that are aligned with our overall audio strategy.”
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