North American esports and gaming company GameSquare has released its financial report for 2023, ending December 31st.
The company reported record revenues of $52m (~£41.75m), marking a significant jump from the previous year’s $28.1m (~£22.56m). According to the company, the surge was mainly attributed to the recent acquisition of Engine Gaming and organic growth.
However, despite revenues increasing, the company has recorded a net loss of $31.3m (~£25.13m), increasing from its $18.1m (~£14.53m) loss in 2022.
Over the last two years, GameSquare has adopted an aggressive M&A strategy, both in terms of acquiring and selling assets. This includes GameSquare selling its Frankly Media subsidiary for $4m (£3.21m). 2023 was also the first full year since the company’s merger with Engine Gaming & Media in December 2022.
Overall for 2023, GameSquare was able to report a gross profit of $13.4m (~£10.76m), up from $9.7m (~£7.79m) in the previous year.
According to a release, the gaming company saw the withdrawal of two high-margin, multimillion-dollar brand campaigns in the last quarter. Despite these adversities in the advertising and media market, Gamesquare expects to fuel future growth once market conditions improve.
GameSquare CEO, Justin Kenna, commented: “The restructuring of our sales and marketing organisation to align better with our new business model has had a temporary impact on our revenue opportunities.
“However, our team’s efforts to maintain strong partnerships have poised our media business for accelerated growth when the market improves.”
The company made headlines when it completed the merger with esports organisation FaZe Clan in March 2024. In the same month, GameSquare sold Complexity Gaming to an investor group led by the esports organisation’s founder Jason Lake for $10.36m (~£8.19m).
Kenna stated that 2024 “will be a transformational year for GameSquare”, as the company looks to generate $100m (~£80.29m) in revenue and expects a gross margin between 22.5% to 27.5%. The company also aims to focus on eliminating costs and enhancing profitability.
“Our shareholders should feel the impact of our recent acquisitions and our revamped operational model throughout 2024. I am thrilled about the direction we are heading,” Kenna added.
