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Guild Esports' (LON: GILD) share price is down on Wednesday despite the company stating that it is on track to achieve its first-year sponsorship revenue targets.
In its interim results for the six months ending March 31, the company also said that it expects to generate significant revenues in H2 2021 arising from four previously announced partnership deals.
Guild stated that sponsorship revenue is “growing strongly with minimum aggregate contracted revenues currently at £7.5m”.
They added that they have a robust pipeline of potential sponsors with several deals at advanced stages of negotiations, while they are on track to achieve a one million subscribed fanbase by the end of 2021.
However, the esports team and lifestyle brand reported a pre-tax loss of £4.3 million during the period, compared to a loss of £394,620 the previous year.
The widened loss was put down to reflecting investment in teams, Guild Academy, content creation and corporate infrastructure.
Kal Hourd, CEO of Guild, said: “In the first six months since our IPO we have executed our strategy of investing in and building best-in-class esports teams, content creators, lifestyle apparel and our academy system, along with a fully supported operations team. This has attracted multi-year partnerships with prestigious global brands such as Subway, Hyper X and Samsung, with a minimum of £7.5m in contracted revenue already secured.
“We look forward to announcing more sponsors in the coming months and working strategically with all of our partners, giving them access to authentic activations and exposure to their target markets through Guild's audience.”
The company's shares are down over 1% so far in Wednesday's session at 7.34p.
Although Guild Esports didn't make it onto the list of the best gaming stocks to buy, gaming is a rapidly growing industry with many companies looking set for strong growth over the next few years. So, which video game companies should you be adding to your portfolio? Here is our list of the best video game stocks to buy right now…
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