British esports organization Guild have revealed that they’ve lost £4.3m over the past six months, before taxes, following investments in teams, content creators, and their new academy initiative.
The org, who are backed by former footballer David Beckham and listed publicly on the London Stock Exchange, are relatively new to the industry, though they’re clearly aiming to grow quickly.
Through their regulatory news service — a necessary means of transparency for public companies — they’ve revealed their six-month unaudited financial performance, led by a loss of £4.3m for the period.
Guild have quickly expanded into major titles like Rocket League, Fortnite, Valorant, and FIFA, which comes at a significant cost when recruiting top players. As well as investing in signing influencers and launching their academy system, they’ve clearly spent a lot to establish their core business pillars.
The announcement also reveals that they made £400,000 during the past six months and have signed sponsorships worth a collective total of £7.5m. They previously revealed that they had entered a “multi-million-pound” sponsorship with Subway and are yet to reveal their mystery partner that is paying £3.6m over three years.
The Beckham-backed company expect their revenue to grow dramatically with the inclusion of money from the aforementioned partners, as well as Samsung and HyperX. They have also revealed they have more potential sponsors in the pipeline, with several deals currently at “advanced stages of negotiations.”
“In the first six months since our IPO we have executed our strategy of investing in and building best-in-class esports teams, content creators, lifestyle apparel and our academy system, along with a fully supported operations team,” said Guild CEO Kal Hourd.
“Our future vision and strategy is data-led, and now with our significant audience numbers, we have access to a large amount of information and insight to build upon.”