UK-based organisation Guild Esports have made several updates as part of their financial results for the six months ending March 31st 2024.
They posted a loss before tax of £1.8m during the period (a 21% reduction compared to the £2.28m loss made a year prior).
The loss was reduced thanks to Guild Studios’ revenues jumping 537% to £586,000 (up from £109,000 the year prior), as well as a 38% reduction in administrative expenses. Guild Studios allows the org to monetise their in-house experience in esports and gaming to support brand owners on individual campaigns, ‘with the specific goal of attracting brands not traditionally associated with gaming and esports’.
Revenue fell to £2.1m overall during the first-half period, though, (down from £3.7m a year prior), which Guild said ‘reflects a challenging macroeconomic environment and a significant, one-off tournament victory in 2023 which increased revenue’.
They also cited the fact that company marketing budgets in general have fallen to an average of 7.7% of company revenue in 2024, down from an average of 11% in the previous four years (according to a study by Gartner).
In October 2023, Guild raised £500,000 from investor 00Nation, a crossover brand that combines music, fashion, sports, and gaming, and is listed on the Norwegian OTC Market. Guild raised a further £250,000 from investment company Compassare Holdings as part of a convertible loan agreement.
Guild are now looking for more funding and more teams.
“Negotiations to secure additional funding are well progressed and the directors are confident incompany’s ability to close negotiations swiftly,” the org said in their latest financial update.
Also, audience numbers are down slightly, but video views are up. Guild said their audience stands at approximately 2.7m. There has been a ‘modest reduction in Guild’s network audience since January as the company parted ways with Counter-Strike team the Guild Eagles’.
However, Guild have gained 37,000 new followers to their owned social media channels since January 2024. Audience engagement has continued to increase from 2023; the company has received 93m video views in the 2024 calendar year so far, compared with 105m in total for the entire 2023 calendar year.
Sponsorship is still a key focus for the org. They signed two sponsors in the half year: Subway returning to the front of the org’s kerseys as Guild’s Official Quick-Service Restaurant Partner in a six-figure deal, and a one-year rolling partnership with virtual trading platform ENDX in December.
Guild’s players have been temporarily removed from the platform while ‘Guild evaluates the signing of a new Counter-Strike team’. More on that below.
Guild Esports ‘take a more flexible approach to entering and exiting different esports’
This year, Guild said they have ‘adapted their esports strategy to take a more flexible approach to entering and exiting different esports’.
“Every game title Guild competes across must deliver a commercial return and value for investors, whether this is through tournament winnings, sponsorship sales or activation opportunities with existing partners,” Guild said.
“Guild does not have prestige titles, where the company fields professional rosters simply for appearance or reputation and Guild does not retain underperforming players.”
Throughout the first half of 2023, Guild said they prioritised developing emerging talent using their coaches and academy rather than signing the world’s best players.
“Players trained in the Guild Academy system have considerably lower wage requirements, allowing Guild to maintain a larger professional roster. This approach additionally offers a revenue-generation opportunity, as players trained through the Academy system can be sold on to other esports organisations for profit.”
This strategy is a change from Guild’s views when they first entered esports back in 2020, when the org regularly said in press releases their goal was to become world champions.
While Fortnite player Chico won $200,000 after finishing third in the Fortnite Champion Series (FNCS) Grand Final in October 2023, the org cut ties with the ‘Guild Eagles’ Counter-Strike team and are in the process of searching for a new Counter-Strike team.
“In addition, Guild has longstanding interest in a number of games including Rocket League and Valorant and looks forward to returning to these titles when a commercially viable opportunity arises,” the org said.
Currently, Guild fields pro rosters across eight esports: Apex Legends, Warzone, FC, Fortnite, Mobile Legends Bang Bang (as part of a partnership with R8 Esports), Street Fighter, sim racing and Tekken.
It was only recently that Guild entered sim racing and Tekken, Guild entered Warzone with UK players and re-entered Apex Legends.
They are part of the Esports World Cup Foundation Club Support Program, which means they can receive six-figure funding to enter into new esports titles. The Esports World Cup of course being a major tournament series to be held in Saudi Arabia this summer across multiple games, with $60m+ in prizing. Guild have qualified for four events so far at the Esports World Cup.
Guild target MENA gamers
Guild said their ‘immediate focus’ for MENA is to compete at the Esports World Cup in Riyadh in July and August 2024.
In addition to this, Guild are ‘continuing to evaluate how to utilise their Guild College and Academy to effectively monetise the growing MENA audience’.
“The board sees excellent growth potential in providing a clear path-to-pro, similar to an association football academy system, to young gamers in the MENA region,” Guild said. “This is of keen interest to Guild’s co-owner, David Beckham, following his own positive experience of the Manchester United academy system.”
Outlook for Guild Esports in H2 2024 and 2025
The org said they ‘continue to trade in line with management expectations, and the 38% reduction in administrative costs puts Guild on track to achieve a substantial reduction in cash burn for the full year’.
Guild’s strategy to diversify revenues is ‘showing positive momentum’, led by an increase in revenues from Guild Studios and the org’s international expansion. So the board say they’re cautiously optimistic for the remainder of 2024.
Jasmine Skee, Guild Esports CEO, said: “Guild have done well to weather a tricky macroeconomic environment and the rise in Guild Studios’ revenues is highly promising. We are pleased with our progress in strengthening Guild Esports’ financial health and expanding our global footprint. Our focus remains on executing the company’s existing commercial strategy and positioning it for long-term growth.
“Our partnerships, such as with Subway UK and Sky Broadband, along with our new initiatives in the Esports World Cup Program, underscore our commitment to innovation and industry leadership.
“We are cautiously optimistic that our efforts will continue to drive growth and success as we navigate through the remainder of 2024 and beyond.”
Dom is an award-winning writer and finalist of the Esports Journalist of the Year 2023 award. He graduated from Bournemouth University with a 2:1 degree in Multi-Media Journalism in 2007.
As a long-time gamer having first picked up the NES controller in the late ’80s, he has written for a range of publications including GamesTM, Nintendo Official Magazine, industry publication MCV and others. He worked as head of content for the British Esports Federation up until February 2021, when he stepped back to work full-time on Esports News UK and offer esports consultancy and freelance services. Note: Dom still produces the British Esports newsletter on a freelance basis, so our coverage of British Esports is always kept simple – usually just covering the occasional press release – because of this conflict of interest.
