GameSquare Holdings records increased revenues and net loss for Q3 2023

17 November 2023

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GameSquare Q3 financial results
Image Credit: GameSquare

GameSquare Holdings, the parent company of North American esports organisation Complexity, has announced its financial results for Q3 2023, ending September 30th.

The company reported $16.0m (~£12.1m) in revenues for the quarter, $5.9m (~£4.7m) higher when compared to the same period in 2022. Despite increased revenues, the company still recorded a net loss of $5.1m (~£4.1m), up $0.9m (~724,000) from Q3 2022.

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GameSquare’s total revenue for the first nine months of 2023 is $35.2m (~£28.3m), with a net loss of $13.5m (~£10.8m) and an EBITDA of $10m (~£8.1m).

Notably, GameSquare recently announced the acquisition of esports organisation FazeClan in an all-stock transition valued at approximately $16m (~£13.2m). According to the company’s financial report, FaZe Clan and GameSquare generated an annual revenue of $138m (~£111.1m) in 2022.

The company also expects to realise over $18m (~£14.5m) in run-rate cost savings from the acquisition, in part due to reduced duplicate corporate costs.

Commenting on the Q3 2023 report, Justin Kenna, CEO of GameSquare, stated: “2023 is shaping up to be a transformative year for GameSquare with the completion of the Engine Gaming acquisition in April, and the planned acquisition of FaZe Clan that was announced in October.

“Acquisitions are an important component of our strategic growth plan and support our efforts to quickly reach scale and drive profitability, while simultaneously creating a modern, end-to-end platform to connect global brands with gaming and youth audiences.”

At the time of writing, the publicly listed company is trading at a price per share of CAD $2.35 (~£1.37).

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Aside from Complexity Gaming, GameSquare Holdings owns digital media company GCN, marketing agency Cut+Sew (Zoned), talent agency Code Red Esports Ltd., creative production studio Fourth Frame Studios and live streaming analytics platform Stream Hatchet, among others.

Earlier this month GameSqaure announced that it was selling the radio business assets of its subsidiary Frankly Media for $4m (~£3.22m).

According to GameSquare’s CEO, the company should also experience strong organic growth with its pipeline staying at record levels and increasing sales from Q2.

“While the economic environment has remained difficult throughout 2023, we believe we are well positioned to navigate any near-term challenges because of the strong platform we have assembled and the value we provide brands,” added Kenna.

Davide Xu