UK-based esports organization Guild Esports reported its financial results for the first six months of FY2022 ended in March 2022. Key findings from the filing are presented below.
Guild reported revenues of around GBP 1.1 million (approx. USD 1.5 million), reflecting growth of 195% YoY. The company’s revenue mix saw a stark change, with partnership revenue accounting for 99% of revenue compared to less than a 20% revenue share in 1H 2021. It revealed that sponsorship revenue recognized from its deal with blockchain company Bitstamp was the primary reason for this.
Gross profits stood at around GBP 710,000 (approx. USD 960,000) with a gross profit margin of roughly 66%. This was a significant improvement over the ~30% gross profit margin recorded in 1H 2021. Prize money payments to players accounted for the bulk of direct costs (94%).
The company’s net losses worsened to GBP 4.9 million (approx. USD 6.6 million) from GBP 4.3 million (approx. USD 5.8 million) in 1H 2021. The company cited investments in its teams, content creation, and its academy as the main reasons for the deteriorating losses. The company also revealed that it cut staff to 30 from 45 and intends to reduce its cost base by around 20% in 2H 2022.