Since its formation, Global Esports has made its first profitable year with $2 million in cash revenue.
The 2024 fiscal year was a great one for Global Esports, a sport club that owns multiple esports teams across the globe. This was the first profitable year for the company, according the a LinkedIn post by the CEO Rushindra Sinha.
Sinha reported a total of $2 million in cash revenue generation in FY 2024 (April 1, 2023 - March 31, 2024). This is big news because currently, an "esports winter" is ongoing. Every other organization is struggling to hold themselves above water.
Global Esports financial base is located in India and Korea. The news from Sinha tells us that this turn of events is great news for the club. The term "cash revenue" is designates real profit and is not accounting jargon.
Global Esports contributes financial success to partnership with VCT and Riot Games
So what changed in the past year that led to this massive success for Global Esports? Sinha has identified a major driver in this process being the partnership, or franchising, of the club with the Valorant Champions Tour (VCT) and Riot Games. The CEO says this is this "cornerstone" of the company's earnings.
Global Esports entering into this contract two years ago and has, since then, reported significantly improved statistics, namely a fourfold increase in revenue. A side benefit was the brand-building that is the inevitable part of a public partnership with a major player, in this case, Riot Games and VCT.
Recognizing this, Sinha says the organization is "laser-focused" on building such meaningful and profitable collaborations.
However, Sinha is not blind. He has been honest about the continuing struggle of Global Esports in maintaining a steady cashflow. On paper, the company is profitable, but on the ground situations are different.
Sinha says the company is committed to expanding profit margins, reducing expenses, and developing a sustainable business model that does not strip the company of all profits and runs the risk of milking it dry.
In Sinha's own words, "We recognize the privilege of reaching this milestone in a difficult market... We know there’s a long road ahead to further strengthen our financial footing. We’re excited for the journey and thankful for everyone who has supported us so far."
Now that Global Esports has reached the public eye, it will interesting to see how they will maintain the publicity in view of the dire circumstances gripping the esports industry currently.