British esports organisation Guild Esports has published its financial results for the period between October 1st 2020 and September 30th 2021. This is the company’s first audited full-year results since its June 2020 debut.
The company accumulated £8.8m (~$11.8m) in losses, compared to last fiscal year’s £2.7m (~$3.6m). The annual revenues were £1.9m (~$2.6m), an increase from the second half of 2020, but still left much to be desired.
Guild confirmed in the report that the sponsorship revenue was ‘significant’, and pointed out that the company did terminate a large European fintech partnership in 2021, reported to be worth £3.6m (~$4.8m). The company recently sourced a new partner in cryptocurrency company Bitstamp in early 2022, valued at £4.5m (~$6m), a 25 percent increase.
Guild Esports chairman D Lew, said: “I am pleased to report Guild’s maiden full year results since its flotation on the London Stock Exchange on 2 October 2020. The period under review saw Guild rapidly scale from start-up phase to full commercial operations as part of its growth strategy to become one of the world’s leading esports team organisations in the next few years.
“Despite the challenges of building a new business amid a global pandemic, good progress was made across the business to fulfil that vision.”
This was Guild’s first full calendar year of business. The company managed to sign a set of new sponsors, including HyperX, Subway and Samsung. Guild Esports also started its Guild Academy, project and recorded growth in social media following and viewership. Last week, the org signed a 10-year lease for the Guild Academy its global headquarters in London’s Shoreditch, which the org expects to become a ‘significant commercial asset’.
In conclusion of the report, Guild Esports noted that the company plans to attract more brand partners in 2022, and is confident that significant sponsorship revenue will be added to the current annual revenue run.
Esports Insider says: The situation might not look great for Guild from the start, but considering this is the first real full-year of business, it could be a lot worse. The company is still operating with a loss, and will probably continue to do so through 2022, but if investments and partnerships keep on coming this could be a good year for Guild.