Esports holding company Enthusiast Gaming has revealed a net loss of CAD $76.8m (~£45.9m) for the 2022 fiscal year, an increase from the previous year’s CAD $52m (~£31m) loss. The figures were disclosed in the company’s annual financial results, which also showed a decrease in available cash from CAD $22.6m (~£13.5m) at the beginning of the year to CAD $7.4m (~£4.4m) by year-end.
However, the report also highlighted several positive aspects, including a 21% YoY increase in annual revenue to CAD $202.8m (~£121.28m) and a 68% rise in gross profit compared to 2021.
Enthusiast Gaming experienced a turbulent year, securing major partnerships with the NFL and Hut 8 Mining for its FPS blockchain game EV.IO, but also facing public campaigns to replace CEO Adrian Montgomery. Montgomery stepped down in 2022, and Nick Brien took over as CEO in March 2023.
In March 2022, Enthusiast Gaming sold several media assets, including Destructoid, Escapist Magazine, and Siliconera, to GAMURS Group for CAD $6.8m (~£4.56m).
Despite the increased net loss, Enthusiast Gaming’s CEO remains optimistic about achieving sustainable profitability in 2023, citing record revenue, gross profit, gross margin, direct sales, and subscriptions. Brien also mentioned the impact of macroeconomic conditions on programmatic advertising revenue in the second half of the year.
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