Danish esports organisation Copenhagen Flames has released its financial results for 2021, with the company recording increased growth, as well as a profit.
According to the results, Copenhagen Flames turned a profit for the first time ever — around DKK 46,000 (~£5,200) to be exact.
Copenhagen Flames recorded DKK 3.8m (~£430,000) in cash and cash equivalents, an increase compared to DKK 770,000 (~£87,000) in 2020. The number of employees increased from 9 to 17, moreover the overall staff costs increased from DKK 2.7m (~£310,000) to DKK 10.2m (~£1.16m).
Further examining of the results shows that Copenhagen Flames’ turnover from its academy and bootcamp efforts has grown from 2020 to 2021, as did tournament revenue and partnership revenue. According to the company, the gross profit before salaries increased from DKK 2.3m (~£260,000) to DKK 10.1m (~£1.15m). Financial income was DKK 155,000 (~£17,600).
Although the profit might not be immense, it is comforting to see an esports organisation not announce a loss. Interestingly though, Copenhagen Flames management expects for 2022 to be a loss-making year, since the company made investments this year that will be used to scale its staff, premises, sports setup and teaching platform, according to the report.
In addition, the company will budget the loss and aim to combat it with a capital increase by ‘debt conversion’ and capital increase by a ‘cash capital contribution’. The total expected loss for 2022 is between 1 and 2 million Danish kroner (£113,000 to £227,000), the report explained.
Commenting on the financial results, CEO of Copenhagen Flames Steffen Thomsen, noted: “Our growth has been very satisfactory, and I am pleased that several of the business areas in which we have invested in both finance and personnel have delivered some very good results.”