Enthusiast Gaming posts $41.6M loss in 2021
by Adam Fitch ·
Canadian gaming and esports company Enthusiast Gaming has revealed its financial results for 2021.
Brass tacks: The company posted "record breaking results" in the final quarter of 2021 and management "expect this momentum to carry into 2022 and beyond.”
- Enthusiast generated revenue of $133.8M ($167.4M CAD), a sizeable increase from $58.2M ($72.8M CAD) in 2020.
- Its cost of sales amounted to $104M ($130M CAD) leaving a gross margin of $30.2M ($37.8M CAD).
- Despite the significant increase in revenue, Enthusiast reported a net loss of $41.6M ($52M CAD). It had a net loss of $21.5M ($26.9M CAD) in 2020.
Operations: It's not cheap to run the "largest gaming property in the United Kingdom and Canada," a title it has claimed following recent Comscore ratings.
- Total operating expenses for the year came to $68.2M ($85.3M CAD), a sharp increase from 2020's $28.4M ($35.5M CAD).
- The company spent $20M ($25.1M CAD) on salaries and wages and $4.4M ($5.5M CAD) on esports player, team, and game expenses.
Enthusiast's portfolio: The Canadian company has plenty on the go.
- In media, Enthusiast Gaming owns and operates a number of gaming publications including Destructoid, PC Invasion, Escapist, and Upcomer — the latter of which laid off the majority of its editorial staff out of the blue earlier in March 2022.
- The company has Luminosity Gaming, Overwatch League franchise Vancouver Titans, and Call of Duty League franchise Seattle Surge in its esports team portfolio.
- It also runs EGLX, which it describes as the "largest gaming expo in North America," and acquired League of Legends data service U.GG for $45M in November 2021.