Blast report €11.5M losses in 2022
BLAST, a Danish tournament organizer, recently released its annual report for 2022, unveiling a loss of €11,576,434.
Despite experiencing a significant increase in revenue from €13.4 million in 2021 to an impressive €31.6 million in 2022, the company has not been able to translate its revenue into profit.
Where it grew and where lies the challenges?
The growth in revenue can be attributed to increased commercial revenue and a three-year agreement with Abu Dhabi to host the Premier World Final from 2022 to 2024.
The Premier World Final in Abu Dhabi is one of the main improvements in Blast's organization (credits: Blast)The Fortnite Champion Series also contributed to the revenue growth, while sponsorships and media rights remained important sources of income.
However, the high operational costs and staff expenses were the main factors that impacted the final result.
Very good perspectives for Blast in the near future
Despite the financial challenges, BLAST has positive prospects for 2023. The company aims to reach a breakeven point close to or equal to EBITDA (earnings before interest, taxes, depreciation, and amortization).
BLAST plans to continue investing in its studio, production technology, and BLAST.tv. However, it anticipates a loss ranging from €4 million to €6 million for 2023.
To ensure its continued operations, BLAST has secured new financial resources through a €10 million loan and €11 million in new equity capital in 2022. The company believes it has sufficient liquidity to sustain its operations in 2023 and beyond.
One of the biggest Esports events organizer of the world
With a strong presence in three major esports ecosystems—CS:GO, Fortnite, and Rainbow Six—BLAST expects revenue growth.
It has obtained contracts for the Rainbow Six global esports ecosystem in partnership with Ubisoft from 2023 onwards and will run the CSGO Major in 2023.
BLAST anticipates increased output, improved commercialization, and enhanced profitability to drive revenue growth.
Despite the financial hurdles, the esports market continues to offer growth opportunities. BLAST is committed to improving operational efficiency and achieving profitability by striking a balance between revenue and expenses.
It is worth noting that BLAST's main competitor, ESL, has yet to release its annual report for 2022. In 2021, ESL Gaming GmbH reported a loss of €12.22 million.
Why companies such as Blast are so important?
International companies organizing esports events play a crucial role in the industry's growth and development.
They bring expertise, infrastructure, and resources to create high-quality tournaments and elevate the overall esports experience for fans and players alike.
By attracting global attention and fostering competition, these organizations contribute to the expansion and professionalization of esports on a global scale.
Stay tuned for the latest news and events from BLAST to stay informed about the ever-evolving esports landscape.
Credits: BLAST (Annual Report)
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