October 3, 2022

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International gaming and esports company GameSquare Esports, the owner of esports agency Code Red Esports...

International gaming and esports company GameSquare Esports, the owner of esports agency Code Red Esports and esports organisations Complexity Gaming, LGD Gaming and R7 Gaming, has shared the financial report for 2021. 

The company recorded a revenue of CAD $13,6m (~£8.5m), most of which was generated by the company’s agency services department (CAD $10m). The teams department generated CAD $3m (~£1.8m).

Image credit: GameSquare Esports

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GameSquare also recorded a sizeable net loss for the 13 months that ended in December 2021. The company announced a comprehensive loss of CAD $ 26.5m (~£16.5m). GameSquare Esports’ 2020 loss was CAD $3.5m (~£2.19m).

According to GameSquare, the reason behind the loss is due to ‘non-cash expenses’ and ‘one-time costs’ of CAD $17.4m (~£10.9m).

Some of Gamesquare Esports’ notable acquisitions include buying Complexity Gaming in 2021 for $27m and purchasing digital marketing agency Cut+Sew/Zoned for around $8m. 

Justin Kenna, CEO of GameSquare Esports, commented: “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. 

“These factors have given us the confidence to increase our 2022 revenue guidance to a range of $30m (£23.9m) to $32m (£25.5m).” 

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GameSquare pointed out that 2021 was a very notable year for the company. The addition of Dennis ‘Cloakzy’ Lepore to the Complexity Gaming roster of talent (and as a part-owner) was seen as a notable step for the company, as was the high-profile partnership with NFT and blockchain company Arterra. GameSquare also noted the founding of Fourth Frame Studios as an important endeavour for the company in 2021. 

Esports Insider says: At this point in time, finding that a large esports holding company is losing money is not surprising. GameSquare has invested heavily into its agency and content creation efforts, which actually brings in more money for the company than its esports division right now. 

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