Astralis Group, which in December became the first esports organization to make an initial public offering, announced in its financial report Monday a net loss in the first half of 2020, but added that revenues were actually up despite the COVID-19 pandemic creating headaches throughout the esports world.
The Danish company reported a net loss of $4.83 million from Jan. 1 to June 30 of this year (compared to a net loss of $4.48 million in the same period last year). But, according to the report, revenue grew 18.6 percent year-over-year — with increases in both league revenues and sponsorship revenues cited as the reasons for the revenue growth in the report.
Nonetheless, Astralis believes that the increase in revenue will not be enough to overcome the loss in revenues from COVID-19 — both in lost event revenue and the lack of new sponsorship deals in the slowed-down economy — and thus moved its growth projections out by six months or more.
“Our sponsor base was stable during the first half of the year, but we are now missing the additional revenues that signing new commercial partners along the original time schedule would have brought,” CEO Nikolaj Nyholm stated in the report. “With these deferred partnerships, our growth has been shifted to late 2020 and into 2021.”
Citing its goal of securing franchises in major esports league as its primary focus for the last year, Astralis stated it will continue to look to esports leagues and opportunities with the video games themselves as sources of growth in the coming months.
“We are excited to be comfortable back on track in all parts of our business and to be launching various new initiatives this fall to the benefit of our commercial partners and growing fan base,” the report stated.
–Field Level Media