GameSquare Esports Inc (CSE:GSQ) (OTCMKTS:GMSQF) (FRA:29Q1) reported revenue of C$1.5 million for 1Q 2021, a 97% year-over-year increase, as record global esports engagement boosted sales at its core Code Red Esports Ltd asset.
GameSquare also noted that revenue from consulting fees during the period grew to $413,435 from $33,191 a year earlier, related partly to increased billings associated with Bud Light Europe.
“In late 2019, Code Red increased its focus on the influencer segment which, in the midst of a global pandemic, resulted in accelerated sales, generating +97% year-over-year growth,” GameSquare Esports CEO Justin Kenna said in a statement.
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“We nearly doubled year-over-year total sales in the influencer segment during 1Q 2021, +44% growth over 1Q 2020, and excellent billings within the esports consulting business,” Kenna added.
Code Red Esports, an esports talent agency, has provided GameSquare with an initial foothold in Europe through its UK operations.
On March 16, subsequent to quarter’s end, GameSquare closed its acquisition of Reciprocity, which it said will be reflected in its 2Q 2021 financial results. Reciprocity’s gaming and esports assets include: a CrossFire franchise in China that it owns with its partner LGD Gaming; a 40% interest in a League of Legends team that competes in Latin America and; its wholly-owned subsidiary corporation, GCN, a digital media company focusing on the gaming and esports audience.
As well, GameSquare also revealed it has “initiated discussions with a number of attractive acquisition targets.”
“We have a specific set of criteria that we consider, and we are at various stages with companies that would be tremendous additions to the GameSquare family of companies,” GameSquare Esports president Kevin Wright stated.
“In 2021, we believe that we can add more great companies that operate in the digital agency vertical or are complementary to what we view as one of the most attractive areas of the esports ecosystem.”
The company also recorded a total comprehensive loss of $572,977, or $0.01 per share, during its first quarter.
Toronto-based GameSquare is an international gaming and esports company that is seeking to acquire additional assets and entities serving the gaming and esports markets and, more broadly, in sports and entertainment.
Contact Sean at sean@proactiveinvestors.com