Gaming-focused media business Guild Esports PLC (LSE:GILD, OTCQB:GULDF) saw a 24% year-on-year increase in annual revenues to £5.53 million in 2023, attributed to the successful diversification of revenue streams and strategic changes in delivering sponsorship commitments.
The group's gross profit notably increased 44% to £3.99 million on a 72% gross profit margin thanks to cost-efficiency measures deployed in the period.
Guild nearly halved its pre-tax losses, reducing them to £4.5 million from the previous year's £8.75 million.
The company's social media presence also experienced robust growth, with its owned audience on TikTok, Instagram, Twitch, and other major social media sites hitting 2.8 million.
Net cash at the end of the period stood at £460,000, increasing to £800,000 post period.
Operational highlights were plentiful throughout the year.
The launch of Guild Studios allowed the company to monetise its in-house experience in esports to support brand owners on individual campaigns.
The company signed or renewed six partners, taking total sponsors and partners to eight, including Sky Broadband, hummel, Subway, Secretlab, Fanatec, Pixels AI and Sky Glass.
In June, the company signed a technical partnership with Fanatec, a leading provider of sim racing equipment and hardware designed for gaming and motorsport.
Fanatec provided Guild with six state-of-the-art sim racing rigs, along with related hardware and regular technology upgrades.
Other new agreements were signed with Secretlab, naming it the Official Gaming Chair Partner of the Sky Guild Gaming Centre, while Sky Glass became Guild's official television partner, providing an increase in revenue compared to the previous deal with Samsung TV.
Guild’s chief executive Jasmine Skee commented: "Guild continued its positive momentum into 2023 with our results showing rising revenues, falling costs, and strong audience growth. With Guild Studios, Guild College, and our Academy, we've diversified our revenue streams while continuing to attract global brands as sponsors.
“With our international expansion beginning and a strong sponsorship pipeline, we're looking to 2024 with confidence."
Looking ahead, Guild is looking to expand its international footprint in the Middle East and North Africa, as well as expand into more sectors including betting, motorsport and Counter-Strike brands.
Guild now competes across seven esports:
- Counter-Strike, with an all-female team and an open team.
- EA FC 24 (the continuation of the 'FIFA' association football game series).
- Street Fighter
- Sim Racing
- Fortnite
- Rocket League
- VALORANT