UPDATE 17/11/23: This article originally reported the financial results in Canadian dollars instead of US dollars. The article has been changed to correct this.
GameSquare Holdings, the parent company of North American esports organisation Complexity, has announced significantly increased revenues for Q1 2023, ending June 30th.
The company reported $14.2m in revenues for the quarter, more than its $6.7m figure from the same period last year. Despite this, the company has still announced a net loss of $4.1m, an increase of around $1.5m from Q2 2022.
Justin Kenna, CEO of GameSquare, highlighted in a release that the focus of Q2 2023 was completing its integration of Engine Media, optimising its cost structure and combining enhanced offerings and talent. The CEO said he remains optimistic about GameSquare reaching profitability by Q4 this year.
“I am excited by the opportunities we are pursuing as we enter the seasonally strong second half of the year, supported by strong closed revenue quarter-to-date and 60% of annual revenue historically falling in the second half,” he said.
“As a result, we expect sales in the second half to be between $47m and $52m, which combined with first-half pro-forma sales of $28m are expected to produce full-year 2023 pro-forma sales of between $75m and $80m.”
Whilst revenues have increased, so did the cost of sales. For Q1 2023, cost of sales totalled $10.2m, resulting in a gross profit of $4.1m. However, this is still an increase from last year’s Q2 gross profit of $3m. Kenna also revealed that the company eliminated an estimated $5m in annualised operating costs during the quarter.
From a commercial standpoint, GameSquare notably signed a ‘multi-million dollar’ deal with eye health startup Vicior in Q2 2023. The organisation also launched a creator marketing platform and has recently been involved in speculation regarding the potential acquisition of North American esports organisation FaZe Clan.
GameSquare is perhaps best known as the parent company of esports organisation Complexity Gaming. However, the company also owns marketing agency Zoned, esports agency Code Red Esports, creative studio Fourth Frame Studios and merchandise company Mission Supply.
In December 2022, GameSquare announced it had reached an agreement to merge with Engine Gaming and Media, which owns streaming data platform Stream Hatchet, as well as a number of other digital companies.
