GCIGuild Esports dives into sim racing with British F4 Esports Championship debut
investee company () announced its entry into the 2023 season of the British F4 Esports Championship, marking its first foray into competitive sim racing.
Guild will field two professional drivers in British F4 Esports, with the roster to be announced "in due course". The professional players will have access to Guild's new Simulator Facility, containing 8 new sim racing rigs provided by Fanatec.
The British F4 Esports 2023 season will begin in September and run until November 2023. It will consist of 8 rounds held at digital replications of real-world racetracks. Competing in the 2023 season are notable companies from traditional motorsports, including Aston Martin Aramco, Cognizant, and Williams.
The championship will be contested using FIA F4 cars, which are officially licensed by the FIA, and modelled on real-world Formula 4 cars. The event is also sanctioned by Motorsports UK, the governing body for motorsports in the UK.
Today's news comes a month after Guild announced its new partnership with racing equipment provider Fanatec. The latter supplied 8 sim racing rigs to Guild under a value-in-kind deal mostly in exchange for advertising. The rigs have formed the centerpiece of Guild's new Sim Racing Facility at its Sky Guild Gaming Centre in Shoreditch.
Today's announcement is further evidence that Guild's deal with Fanatec was a strategic and financial win for the esports company, yielding a significant new revenue stream at minimal capital cost by leveraging the existing Shoreditch facility. Moreover, the partnership diversified Guild's revenue into the rapidly developing sim racing sector of esports, which is expected to see significant growth in the coming years.
Guild expects the Sim Racing Facility to begin generating revenue from Q3 2023. The company's entry into British F4 Esports should provide new sponsorship and revenue opportunities, as well as bringing access to a pipeline of new talent.
Also in today's announcement Guild said it will support drivers in the UK FF1600 Esports Cup, a dedicated feeder series for the British F4 Esports Championship that is open to underprivileged drivers who may not own sim racing hardware or have previously competed in sim racing. Guild will leverage its Simulator Facility to provide entrants with the opportunity to train and improve ahead of the competition. This will also provide a scouting opportunity for Guild to discover talented drivers for its Academy and pro teams.
"Throughout my career in Sim Racing, it has been clear that there has been a missed opportunity for organisations to develop grassroots talent in the esport. That's why we're so excited to be entering into the British F4 Esports Championship, which presents us with the opportunity to nurture young competitors and utilise the incredible facility available to us at the Sky Guild Gaming Centre. For our commercial team, this is also a fantastic opportunity to begin our journey speaking to new audiences and open up new revenue streams." said Luke Jones, VP of Commercial, Esports and Gaming.
Sim racing is among the fastest-growing areas of esports with global competitions run by Formula 1, Formula E, Le Mans and established esports operators such as ESL. The global gaming simulator market, of which sim racing makes up a significant portion, is expected to reach US$10bn by 2027.
shares jumped 12.4% on today's news in early trading.
In its recently announced interim results, Guild reported a revenue increase of 241% to £3.7m compared to £1.1m in H1 2022, driven by significant growth in sponsorship income. Gross profit also rose 256% to £2.5m from £0.7m a year ago. The company's loss before tax halved to £2.3m from £4.96 in H1 2022, reflecting increased sponsorship revenue and reduced operating expenses. Net cash stood at £1.1m on 31 March 2023. Momentum is positive into H2 2023 with a strong contracted orderbook and diversification of revenue streams such as the abovementioned partnership deal. We expect H2 2023 revenues to show further year-on-year growth.
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