Guild Esports reveals $11.8M loss in annual results
British organization Guild Esports, which classes David Beckham as a minority owner and ambassador, has posted its first-ever full-year annual financial performance since its launch in June 2020. The period covered is October 1st, 2020 to September 30th, 2021.
Brass tacks: While Guild has launched projects and signed sponsors it's happy with, the finances don't necessarily paint a pretty picture.
- Annual revenue for the org reached $2.6M (£1.9M).
- A pre-tax loss of $11.8M (£8.8M), up from $3.6M (£2.7M) in the year prior.
- The org states "fundamental" investments in operational infrastructure, esports teams, Guild Academy, and merchandising are reflected in the loss.
The income: While Guild posted a sizeable loss for the year, it appears sponsorship is the saving grace at the moment.
- Merchandise sales "were modest"; the org is now looking to partner with existing brands and networks to increase reach.
- Sponsorships from HyperX, Subway, and Samsung total revenues of $5.2M (£3.9M), though only $1.3M (£1M) was received in the given period.
- Recent crypto exchange sponsor Bitstamp secures the org $6M (£4.5M) in revenue over the three-year deal, replacing the terminated $4.8M (£3.6M) deal originally announced in October 2020.
Looking ahead: In the report, Guild identified several areas it feels will prove fruitful in the future.
- There's a clear plan to attract more partners in 2022 that will lead to "adding significant sponsorship revenues" moving forward.
- Through Guild Academy, the org aims to be the "largest provider of school-based learning for esports" by partnering with schools and colleges.
- Guild CEO Kal Hourd is "confident that the hard work and investment made thus far will translate into significant improvements in revenue and value creation".