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Guild Esports PLC (LON:GILD) said it is “on track to deliver strong growth” in 2021 as it reported results covering the period prior to its floatation on the London Stock Exchange on October 2.
For the period from incorporation on September 3, 2019, to September 30, 2020, the developer of esports teams said it had secured investments prior to its initial public offering totalling £5mln while ending the period with net cash of £1mln alongside a pre-tax loss of £2.7mln representing start-up and listing costs and its pre-revenue status.
READ: Guild Esports unveils signing of its second sponsorship deal since making its London stock market debut in October
Post-period, Guild said it had raised £20mln through its IPO, as well as clinching its maiden sponsorship deal with contracted revenues of £3.6mln over three years and setting up two esports teams comprised of top-ranked video game players. The company also said as of January 28 its cash balance stood at £18mln.
Looking ahead, Guild said it has a “robust pipeline of potential sponsors” with several deals at advanced stages of negotiation, adding that its expanding roster of top players meant it is “well-positioned to perform well and achieve high rankings in tournaments”.
“The results reflect Guild’s start-up phase before its IPO during which time we developed a long-term strategy to create one of the world’s leading esports team organisations, modelled on the proven player development academy system of Premier League football. We have continued to make excellent progress in executing this strategy in the four months since the IPO. Our roster of leading players has been expanded across four major games, enabling our teams to reach millions of gamers worldwide and ramp-up a tribal fan base under the Guild brand. We are continuing to benefit from the funds raised at IPO and retain £18mln of cash on balance sheet to deploy as needed in order to accelerate our growth and boost brand recognition”, executive chairman Carleton Curtis said in a statement.
“Our growing presence is attracting keen interest from major brands and sponsors as esports becomes a mainstream social and entertainment activity worldwide. As a result, we entered the new year with an excellent new business pipeline and remain on track to deliver significant sponsorship revenues in the current year. Our expansion into Fortnite with three esports athletes has given us a top-tier roster with a significant social following, and a track record of wins and trophies in global competitions. Our FIFA player is currently ranked 3rd in Europe and has already qualified for the pinnacle competitive FIFA tournament at the end of the season, the FIFAE World Cup. Our Rocket League team has gone from strength to strength and is still on track to qualify for the World Championship. Our Valorant roster, supported by a newly appointed head coach, is gearing up for the new season and anticipates being a top-three team”, he added.
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