International gaming and esports company GameSquare Esports has reported a loss of $3.89m (~£3.08m) for the first quarter of 2022, which ended March 31st.
GameSquare also announced revenues of $5.04m (~£4m) within the three month period, which is a significant increase from $820,129 (~£650,337) in Q1 2021. A portion of the revenue was through the company’s esports teams, with the division generating a revenue of $1.92m (~£1.52m).
The report highlights that revenues generated through its esports teams include sponsorship, prize money and ‘player-related revenue’. GameSquare is the parent company of esports organisations Complexity, LGD Gaming and R7 Gaming.
For the three month period, the company’s agency services generated revenues of around $3m (~£2.38m). GameSquare’s agency properties include Code Red Esports, Zoned, and Cut + Sew.
The Q1 2022 loss was largely due to GameSquare’s expenses amounting to $5.66m (~£4.49m), with salaries, consulting and management fees amounting to $2.66m (~£2.1m). Moreover, the company reported a cost of sales figure of $3.39m (~£2.69m).
Justin Kenna, CEO of GameSquare, commented: “We continue to make excellent progress building a leading esports and gaming company. We exceeded our internal sales target for Q1 2022, and we are progressing well on our path to profitability.
“Our sales pipeline is robust, and we continue to see significant growth in the number and size of RFPs for our agency businesses and sales activity within Complexity Gaming. We believe that the effect of operating leverage will become increasingly evident throughout 2022 as we have invested in the foundation necessary to support our rapid growth and become a profitable esports and gaming business.”
Earlier this year, GameSquare released its financial report for 2021, with the company recording a comprehensive loss of CAD $26.5m (~£16.5m) and revenues of CAD $13,6m (~£8.5m).
Within its Q1 2022 financial reports, the Toronto-based company detailed that its figures will now be reported in USD, as opposed to Canadian dollars. According to the report, this is to reflect GameSquare’s focus on pursuing business opportunities within the US gaming and esports market.
Esports Insider says: These are promising figures when taking into account the company’s 2021 results. Last year was a significant period of growth for GameSquare, so the company will be hoping that some of those investments will start to be rewarded in 2022. The company’s launch of Fourth Frame Studios in March should also be a factor within GameSquare’s Q2 report.