Canadian esports holding company Enthusiast Gaming has released financial results for Q3 2022. The company recorded an increase in revenue, but also in expenses and net loss.
The company’s report also revealed that the third quarter saw record gross profits, record gross profit margins, and record subscription revenue and direct sales.
The total revenue for Enthusiast for Q3 was CAD $50.5m (~£32m), an increase of CAD $7m (~£4m) over the same period last year. Looking at the whole year, revenue has increased by around CAD $38m (~£24m), from CAD $110.4m (£70m) to CAD $148.8m (£94.3m).
The quarter’s performance was better than the same period last year, but Enthusiast is still accumulating losses, a trait shared by most publicly traded esports companies. The net loss for the quarter was CAD $30.2m (£19.1m), compared to CAD $12.3m (£7.8m) in the same period the year before.
Enthusiast did note that the company recorded an increase in subscription revenue of around 50%, up to CAD $3.8m (£2.4m) from CAD $2.5m (£1.6m) in the same period of 2021.
As reported in September, Enthusiast earned CAD $6.8m (£4.3m) from its sale of editorial properties to the GAMURS Group.
The company also provided an update in its search for a new CEO to succeed current CEO Adrian Montgomery. A Search Committee has been formed, and Enthusiast enlisted Russell Reynolds Associates to help find a replacement. Commenting on the search, the company claimed it is “deep in the process of conducting interviews and is encouraged by the quality of candidates.”
In July, Enthusiast staff members called for Montgomery’s departure as CEO amidst a leadership struggle. It echoed a public campaign by Enthusiast Gaming’s largest shareholder, Greywood Investments, to replace Montgomery and the board of directors with its own nominees.
Meanwhile, Enthusiast Gaming CEO Adrian Montgomery commented on the Q3 results: “Our disciplined focus on high-margin revenue opportunities, cost efficiencies and strategic investments like our first-of-its-kind partnership with the NFL for Tuesday Night Gaming have built Enthusiast into a fully-integrated media and entertainment company, a partner of choice for the world’s leading brands, and a dominant player in the gaming and esports world, now on the cusp of sustainable profitability.”