Finnish esports organisation ENCE has revealed that it generated a net profit of €917,000 (~£792,000) in 2022.
ENCE told Esports Insider that the organisation has also remained cash flow positive and profitable for Q1 2023, though exact figures were not disclosed.
The organisation, which was founded in 2013, claimed that it generated just over €4m (~£3.45m) in revenues for the year, with a €1.1m (~£950,000) EBITDA.
ENCE’s CEO, Mika Kuusisto, told Esports Insider that its pragmatic approach to the esports ecosystems it competes in, as well as its successes across two Majors in CS:GO, were major factors in the organisation’s 2022 profitability.
Kuusisto stated: “We are very careful when evaluating new (games) opportunities and want to see a healthy ecosystem both financially and competitively, before entering new games. Hence we have double-downed on Counter-Strike, where being one of the Louvre partner teams and making consistent CS:GO Majors contributes significantly to our revenue.”
Currently ranked 11th on ESL’s CS:GO World Ranking, ENCE has been a regular performer across multiple Majors and S-Tier competitions. In 2022, the organisation notably reached the semi-finals of PGL Major Antwerp and the finals of IEM Dallas.
Outside of CS:GO, ENCE also competes in EA SPORTS NHL esports through 2018 world champion Erik ‘EKI’ Tammenpää. The Finnish organisation also had a short stint in League of Legends’ esports ecosystem, competing in the NLC (Nordic and UK regional league) in 2020.
Kuusisto added: “Fundamentally we always focused on building a sustainable business rather than taking massive risks with investors’ money. Additionally, as a bootstrapped esports business, we are focused on creating team first culture both in the server and in the office.”
In 2022, ENCE secured a variety of diverse partnerships, ranging from the Football Association of Finland to telecommunications company Elisa. The organisation’s commercial portfolio also includes brands such as Red Bull, Logitech G, noblechairs and Asian esports betting platform Jing Ji Bao.
ENCE’s professed profitability is a welcome announcement as a range of esports teams struggle.
Earlier this month, Danish esports organisation Copenhagen Flames filed for bankruptcy. Moreover, the likes of eUnited, Team Finest, X7 Esports, among others, have all shuttered over the last 12 months. Popular French esports organisation Team LDLC will cease operations in July.
