Esports and media holding company Enthusiast Gaming has reported a net loss of CAD $59.1m (~£34.53m) for Q3 2023.
The net loss has increased by around CAD $22m (~£12.85m) compared to Q3 2022. The company noted that the Q3 2023 increased losses included a ‘non-cash impairment expense’ of CAD $51.7m (~£30.21m).
Enthusiast Gaming also recorded CAD $45.6m (~£26.64m) in revenues, marking a 10% decrease compared to the same period one year ago. This included ‘Media and Content’ revenue also decreasing by 10% to CAD $39.8m (~£23.25m).
Enthusiast Gaming owns various properties within the esports and gaming space, most notbaly this includes Luminosity Gaming and FPS title EV.IO and Call of Duty League franchise Seattle Surge. In 2022, the company also sold its media assets to GAMURS Group, the owners of esports publication Dot Esports.
The company’s esports and entertainment revenue in Q3 2023 also decreased by 12% compared to the same period last year.
Enthusiast’s financial report did highlight some positives, such as its gross profit increasing by 1% to CAD $16.7m (~£9.67m). Moreover, the company registered an increase in total views of 4% compared to the same period in 2022.
At the end of the period, the company had a cash balance of CAD $2.8M (~£1.64), marking a decrease of CAD $4.6m (~£2.69m) in available cash. According to the financial release, this decrease was due to “repayments on the Company’s Term Credit” amounting to CAD $3.3m (~£1.93m).
The company did note that on October 12th it ‘extended and expanded’ its term and operating credit facilities. As a result, the company was provided up to approximately CAD $7m (~£4.09) of ‘additional liquidity’. This made the total cash available as of mid-October CAD$7.3m (~£4.27m).
Among its operational milestones, Enthusiast Gaming collaborated with Netflix and Metavision to launch its first-ever Fortnite Creative in-game experience for One Piece earlier in September.
The company also launched the second season of its video gaming series NFL Tuesday Night Gaming (NFL TNG). According to Enthusiast, increased the number of advertisers for NFL TNG from 11 in Season 1 to 14 in Season 2.
As an overall business, Enthusiast secured renewals and new additional business with notable advertisers including Coca-Cola, UPS, Toyota, Shell, FX Networks, AT&T, Paramount Pictures and ESPN in Q3 2O23. As a result, renewals and additional business with existing customers accounted for 69% of Brand Solutions revenue in Q3 2023. This is a combined revenue of CAD $9.8m (~£5.73m), decreasing by 3% compared to Q3 2022.
