Enthusiast Gaming loses $8.6M in Q1 2022

by Adam Fitch  · 
Updated
Enthusiast Gaming loses $8.6M in Q1 2022

Canadian gaming and esports company Enthusiast Gaming has revealed its financial results for the first quarter of 2022.

Brass tacks: The company is showing promising signs year-on-year.

  • Revenue of $37M ($47.2M CAD), an increase of 57% when compared to the same period in 2021.
  • The bolstered revenue comes from increased viewership on content, stronger revenue per thousand impressions (RPMs) on both articles and videos, higher subscription revenues, and the acquisitions of Addicting Games and U.GG.
  • Net loss of -$8.6M (-$11M CAD) for the period, compared to a net loss of -$10.5M (-$13.5M CAD) for the same period the year prior. Large operating expenses include salaries and wages of $6.8M ($8.7M CAD), technology support and web development of $2.7M ($3.5M CAD), and amortization and depreciation of $3.7M ($4.8M CAD). Overall, operating expenses reached $19.5M ($25M CAD), compared to $14.6M ($18.7M CAD) the previous year.
  • "Q1 2022 gross profit was particularly strong and effectively equal to Q4 2021 gross profit, despite a strong seasonal difference between the two periods," said Enthusiast Gaming CEO Adrian Montgomery.

Recommended reading → How esports organizations performed financially in 2021

The company: Enthusiast has a lot on the go.

  • It's worth noting that it largely downsized the staff working on Upcomer, an esports publication it started a year prior.
  • It reported its 2021 financial performance a couple of months ago, revealing that it had a net loss of $41.6M ($52M CAD) and generated revenue of $133.8M ($167.4M CAD) for the year.
  • It counts renewals and expansions of deals with the likes of the U.S. Navy, HBO Max, and DoorDash as highlights for Q1 2022. According to Comscore, it's the largest property in Games in both Canada and the United Kingdom.
  • The company reports that its content received 11.3B views in the first three months of 2022 across all platforms. Its portfolio includes gaming publications (Destructoid, PC Invasion, Escapist), esports teams (Luminosity Gaming, Vancouver Titans, and Seattle Surge), events business EGLX, and League of Legends analytics program U.GG.