Money

Guild Esports Kept FY 2022 Loss Stable, Increased Revenues

Published by

James Fudge

1 year ago

Publicly-traded, London-based esports organization Guild Esports PLC (LSE: GILD) announced audited results for the fiscal year that ended on Sept. 30, 2022. The company reported total annual revenues of £4.5M ($5.48M USD), an increase of 134% compared to £1.9M ($2.34M) in 2021, primarily driven by new sponsorship deals.

Guild Esports said that sponsorship income increased by 168% to £3.2M ($3.93M), compared to £1.2M ($1.47M) in 2021. Ultimately, the company reported a pre-tax loss of £8.75M ($10.76M), a slight decrease from the £8.82M ($10.86M) pre-tax loss in 2021. As a result, Guild Esports’ cash assets continue shrinking: as of Jan. 25, the company’s net cash was £1.6M ($1.96M), at the end of its fiscal year 2022 – on Sep. 30, 2022 – net cash was £2.73M ($3.35M), and at the end of FY 2021 net cash was £10.07M ($1.24M).

During 2022, the company secured £10.7M ($13.15M) in new sponsorship deals, with a total value of signed contracts of £14.6M ($17.94M). Those contracts included Bitstamp, Coca-Cola, Sky UK, and Samsung. Total “order book remaining to be recognized as revenue” (which it defines “the cumulative value of all signed deals over the full lifetime of the contracts”) amounted to £9.2M ($11.3M) at the end of FY 2022.

Guild also said that it renegotiated its brand ambassador agreement with football star David Beckham’s image rights company and reduced its total minimum payment obligations by £7.5M ($9.22M) over the next two years by replacing it with a variable 20% of revenue share.

In addition to streamlining its cost base through the Beckham renegotiation, Guild Esports expects to optimize overheads under its new CEO Jasmine Skee, who was appointed earlier this month. For the twelve month period of FY 2022, Guild Esports’ administrative expenses increased by £1.02M ($1.25M) to £10.91M ($13.44M). Despite cutting administrative costs, the company said it won’t reduce its staff in 2023.

Note: USD figures are based on an exchange rate of £1 = $1.22 USD on Jan. 31, 2022, at 10:30 a.m. EST.

James Fudge

With a career spanning over two decades in the esports and gaming journalism landscape, James Fudge stands as a seasoned veteran and a pivotal figure in the evolution of esports media. His journey began in 1997 at Game-Wire / Avault, where he curated gaming and community news, laying the groundwork for his expertise in the field. In his more recent roles, James cemented his status as an authority in the esports business sphere as Senior Editor Esports at Sports Business Journal and The Esports Observer between 2018 and 2021.