Guild Esports shares gain as it signs 3 top-ranked players to Fortnite roster
investee company () said it has signed three top-ranked pro players 'Blacha', 'Chico' and 'PabloWingu' to its professional Fortnite roster.
The three players are highly regarded and widely followed in the industry, having won over US$185k combined in tournament prize pools so far in 2023. They will be competing under the Guild banner in European and international Fortnite tournaments.
Polish player Blacha has agreed a 6-month contract with Guild, which the latter has the option to extend for a further 9 months. He joins Guild following an impressive season, having made strong performances across Fortnite Champion Series (FNCS) events, widely considered Fortnite's most competitive tournaments. Blacha has additionally seen success in 'zero-build' tournaments, finishing 4th at DreamHack Open in Sweden in June 2023, and qualifying for the 'Gamers8' tournament in Saudi Arabia.
Chico, from Bosnia and Herzegovina, has initially signed to represent Guild in the FNCS finals. He has been among the best finishers in FNCS major tournaments this year, including 2nd place in FNCS in August. Additionally, Chico finished 1st in the 'Duos Cash Cup' in September 2023.
Danish player PabloWingu has signed a 1-year contract with Guild, which Guild has the option to extend for a further 2 years. PabloWingu was in one of only 9 duo teams to qualify for all three FNCS European Majors tournaments this year. He has also performed well across 'zero-build' tournaments, taking second place in 'DreamHack Dallas' in July.
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Another major announcement from Guild Esports as the company continues to expand its professional teams. Today's announcement of three new Fortnite players follows Guild's recent additions of a new Street Fighter team and new men's Counter-Strike team as well as foray into sim racing.
Markets welcomed the news, driving shares 2.30% higher on Thursday.
Guild's Fortnite team is among its most valuable assets, and should be strengthened by the addition of the three players widely regarded as some of the best in the industry. The players' choice to sign on with Guild speaks to the latter's recent investments in coaching and facilities, partly made possible through Guild's recently expanded partnership with Sky.
The additions should boost revenues for the team, as Guild shifts its recruitment focus towards targeting up-and-coming and developing talent via scouting and data analysis tools. The new players will replace Anas and Hen, who will leave Guild following the conclusion of the FNCS season. Hen will leave on 21 October 2023 and Anas on 25 October 2023.
In its interim results released in May, 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 4Q23 and FY24 with a strong contracted orderbook and diversification of revenue streams, such as with the recent launches of new Street Fighter and Counter-Strike teams and Guild's expansion into sim racing. We expect H2 2023 revenues to show further year-on-year growth.
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