The David Beckham-backed gaming company Guild Esports has cut its pre-tax loss after slashing its costs amid a “challenging macroeconomic environment” for the company, according to a newly filed half-year report.
The London-listed company reduced its loss before tax to £1.8m in the six months ended March 31, 2024, down 21 per cent from £2.28m in the same period the year before. It said that this improved figure followed a 38 per cent reduction in administrative expenses.
This stronger performance was despite Guild’s revenue dropping by more than £1m from £2.28m in its second half of 2023 to £2.1m over the six months ended March 31, 2024.
The company said that this was due to “a challenging macroeconomic environment and a significant, one-off tournament victory in 2023 which increased revenue”.
Tournament winnings are booked as revenues, although most of the winnings are returned to players.
Meanwhile, Guild Studio, the company’s full-service production and creative agency, saw significant growth as its revenue hit £586,000, up more than 500 per cent on the same period last year.
Jasmine Skee, CEO, said: “Guild has 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.”
During its second half, Guid received £500,000 from strategic investor 00Nation AS to help embed the brand, and its services “more deeply into the industry ecosystem” as well as to facilitate further international expansion.
The company also signed a one-year UK sponsorship extension with Subway UK, returning the sandwich chain’s branding to Guild’s jerseys.