GameSquare Esports Inc (CSE:GSQ) (FRA:29Q1) (OTCMKTS:GMSQF) said that its subsidiary Code Red Esports Limited, is attracting key employees to “support and fuel impressive year-over-year revenue growth.”
For the first quarter ended 2021, the Toronto-based gaming and esports company reported revenue of $1.5 million, up more than 97%, compared to revenue in the first quarter of 2020.
“Driven in part by GameSquare’s +97% revenue growth in Q1 FY2021, Code Red management has added outstanding talent to support the influencer segment, consulting functions,” said the company.
READ: GameSquare Esports subsidiary Code Red scores US Polo Assn contract
This week, Code Red added the position of commercial director to accelerate profitable growth in existing segments and to assess and implement new lines of business.
“I am extremely bullish on the opportunities within esports and the outstanding results by Code Red in the first quarter support my view,” GameSquare CEO Justin Kenna said in a statement. “I’d like to personally welcome Dan Ellis in the position of Commercial Director, Tara Innes and Saavik Wilcox-Hamilton as Influencer Managers, and Jonas Lucena in the role of Senior Social Media Manager.”
The GameSquare boss added he was confident that the talented people “Luke and Jan have attracted to Code Red in Europe” will continue to drive strong growth at Code Red.
“We are building a leading, global esports organization, which has seen our market cap more than triple since the completion of our reverse takeover less than a year ago,” added Kenna. “And we’re just getting started!”
GameSquare’s crown jewel acquisition so far is Code Red, an esports talent agency in the UK that provided GameSquare with an initial foothold in Europe. Code Red represents on-screen talent, players and influencers and works with brands to develop influencer campaigns and esports marketing strategies.
“Code Red made exceptional progress in Q1 FY2021 following the completion of GameSquare’s reverse takeover,” said Kenna. “In late 2019, Code Red increased its focus on the influencer segment during the global pandemic, which accelerated GameSquare’s revenue growth to +97% year-over-year. Adding talented new team members is expected to support ongoing organic growth.”
GameSquare’s second acquisition of Reciprocity Corp provides access to Asia, Latin America and North America. 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 GCN, a digital media company.
The GameSquare boss has a bullish outlook.
“While management is not prepared to provide guidance, Reciprocity Corp’s management remains confident that it will deliver against its US$7 million earn-out with a minimum of 20% EBITDA margins,” said Kenna.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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