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GameSquare Esports has revealed its 2021 financial report and the report shows that the company suffered a huge loss. The Canadian Esports company has in its portfolio the R7 Gaming, Complexity Gaming, and LGD Gaming esports franchises, alongside the esports agency, Red Esports.
The report revealed a loss of CAD 26.5 million was made by the company for the duration in view (13 months). Compared to the company’s 2020 loss of CAD 3.5 million, GameSquare sustained a heavy loss in the past year. The company also shared the reason for the loss, related it to the ‘non-cash expenses’ and ‘one-time costs’ that were up to the tune of CAD 17.4 million.
The Chief Executive Officer of GameSquare Esports, Justin Kenna spoke about the financial report. He stated that the company’s ‘four times sequential revenue increase from Q3 to Q4’ shows the company’s progress and fast pace growth owing to their strategic acquisitions. He also revealed that this progress is responsible for the company’s stance to increase its 2022 revenue guidance to a range of $30 – $32 million.
“We made great progress throughout 2021, best illustrated by a nearly four times sequential revenue increase from Q3 to Q4, reflecting the pace of our organic growth and the positive impact of our strategic acquisitions,” Kenna said. “These factors have given us the confidence to increase our 2022 revenue guidance to a range of $30m (£23.9m) to $32m (£25.5m).”
The acquisitions in question procured by GameSquare include the purchase of one of America’s premier and longest-standing esports organizations Complexity Gaming, for $27 million. GameSquare also bought the multi-hyphenated creative agency Cut + Sew and Zoned for approximately $8 million.
Despite the loss, GameSquare had some notable moments, like the signing of Dennis ‘Cloakzy’ Lepore to the Complexity Gaming roster. The former professional Fortnite player was also made a part-owner of the organization, thereby strengthening the franchise.
Kenna had expressed his excitement about having Cloakzy onboard and highlighted the benefits his acquisition provides.
“Cloakzy is revered in the gaming and esports space for his creativity and energy, and we’re looking forward to bringing his passion to Complexity and GameSquare,” Kenna stated. “This partnership is deeply strengthened by GameSquare’s resources and global network, paving the way for Cloakzy to grow his brand while also reinforcing Complexity as a dominant force in content.”
Cloakzy referred to his signing to Complexity Gaming as an opportunity for him to attain new heights in content creation and connect on a much deeper level with his audience.
“Joining Complexity and GameSquare unlocks new opportunities for me to push the limits of what’s possible in content creation and build a deeper connection to my audience,” Cloakzy said. “I’m looking forward to working with TimTheTatman and Complexity’s diverse roster of talent in an environment that encourages creativity and supports professional development.”
GameSquare’s NFT partnership with Arterra was yet another notable moment for the company and so was the company’s newly formed LA-based creative studio, Fourth Frame Studios.
