Guild Esports, the UK-based esports organisation co-owned by English football legend David Beckham, published its 2022 financial report.
Image Credits | Guild Esports
Guild Esports reports similar losses to previous year
The company, which is listed on the London Stock Exchange (LSE: GILD), reported a total loss of £8.748m for the year ending on Sep. 30 2022. Compared to the previous year, it’s slightly lower (£8.826m loss in 2021).
That said, there seems to be strong signs of financial growth, with overall higher annual revenues: £4.5m in 2022 compared to £1.9m in 2021 and a 137% increase. In particular, sponsorship revenues have gone up significantly, recording a 168% increase to £3.2m (2021: £1.2m) and increasing the total value of signed contracts by 174% to £14.6m (2021: £3.9m) from global brands including Bitstamp, Coca-Cola, Sky UK, and Samsung.
Net cash amounted to £2.73m as of 30 September 2022 and £1.6m remaining in January 2023.
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The esports organization expects even more revenue growth
Thanks to the £9.2m order book, Guild Esports is expecting to deliver higher revenues for the current financial year (which ends on Sept. 30, 2023). According to the report, there are more sponsorship deals at the advanced stages of negotiations.
In June 2022, Guild Esports reduced the number of its staff from around 45 to 30, reducing its operating costs by £2.5m at the end of the 2022 financial year. The company also saw changes in leadership, with its CEO Kal Hourd stepping down and Jasmine Skee becoming its new CEO. Three non-executive Directors of Guild Esports, as well as Executive Finance Director James Savage, stepped down from the company earlier this year.
Jasmine Skee, Guild Esports CEO, said: “The new year has started well with a lower cost base, a strengthened Board and senior management teams, as well as a focus on expanding our revenue streams and audience, all of which place Guild in an excellent position to continue its positive momentum. We, therefore, look to the future with confidence.”
The esports org was also able to open the 9,831 sq feet Sky Guild Gaming Centre and Guild Academy in London’s Shoreditch, increasing the potential of more commercial opportunities.
The company also renegotiated its agreement with David Beckham reducing the total minimum payment obligation by £7.5m over the next two years and replacing it with a variable 20% of revenue share.
Despite the reduction in workforce, the financial results seem to be positive, especially if the revenue growth forecast is correct.
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