Guild Esports: Annual Report and Financial Statements

Company registration number 12187837 (England and Wales)

GUILD ESPORTS PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2021

GUILD ESPORTS PLC

COMPANY INFORMATION

DirectorsSecretary

Business Number

  • Mr A Drake

  • Mr K Hourd

  • Mr F Lew

  • Mr J Savage

  • Mr C Sullivan

  • MS Walters

  • Mr D Gardner

  • Mr J Savage 12187837

Registration desk

Craven House

16 Northumberland Avenue London

WC2N 5AP

Listener

PKF Littlejohn LLP Auditor 15 Westferry Circus Canary Wharf London

E14 4HD

GUILD ESPORTS PLC

CONTENTS

Page

Chairman’s Statement

1

Strategic report

4 – 8

Directors’ report

9 – 12

Statement of Directors’ Responsibilities

13

Remuneration report

14 – 16

The independent auditor’s report

17 – 22

income statement

23

Statement of financial position

24

Statement of changes in equity

25

Cash flow statement

26

Notes to the financial statements

27 – 43

GUILD ESPORTS PLC

CHAIRMAN’S STATEMENT

FOR THE YEAR ENDED SEPTEMBER 30, 2021

I am pleased to announce Guild’s first annual results since its listing on the London Stock Exchange on October 2, 2020. The period under review has seen Guild move rapidly from the start-up phase to full commercial operations as part of its growth strategy to become one of the leading esports team organizations in the world within the next few years.

Despite the challenges of building a new business in the midst of a global pandemic, good progress has been made across the company to achieve this vision.

The company generated revenue of £1.9m (2020: £nil) as it benefited from early contributions from sponsorship deals signed earlier in the year. Pre-tax loss increased to £8.8m (2020: £2.7m), reflecting major investment in operational infrastructure, esports teams, Guild Academy, creative of content and the development of the Guild’s merchandising. This investment is fundamental to Guild’s business model and long-term strategy. This has enabled the company to generate exponential growth in its fan base and total audience network in 2021, making it the fastest growing esports team organization in Europe.

Our growing audience of young and hard-to-reach consumers is a powerful magnet for global brands and sponsors, as evidenced by the quality of sponsorship deals signed with Subway, Samsung and Hyper X during the year, followed by BitStamp, a leading cryptocurrency exchange. , in January 2022. I am proud that we have gained the trust of these great brands as sponsorship partners in a relatively short time.

Guild is still at an early stage in its growth and also well positioned to benefit from the long-term industry fundamentals that are driving the esports sector worldwide. In terms of market size, the electronic games industry is larger than Hollywood’s film and music industries combined, as well as one of the fastest growing leisure and entertainment industries practiced by large consumers. public. Microsoft’s recent $69 billion cash tender offer for Activision reflects how major consumer-facing tech giants view the industry’s long-term prospects.

Guild’s investment in the business in 2021 provides a solid platform for long-term growth and creates the media value needed to generate sponsorship revenue in the coming year and beyond. Our new business pipeline remains strong and we are at an advanced stage of negotiations with multiple partners, giving Guild prospects great confidence.

As an organization of young teams, Guild’s growing following of passionate and loyal fans is what drives the company. Our growing roster of professional players have achieved notable success in several major tournaments and their continued success is a source of great pride for all Guild fans and supporters.

We are confident that we have laid the foundation to deliver significant value to our brand partners and create long-term shareholder value.

Our workforce has grown from a handful to over 35 full-time employees today and I commend all of our employees, players and partners for their hard work and dedication which has positioned the company for growth in the years to come. to come.

Mr D Lew

Non-Executive Chairman January 28, 2022

GUILD ESPORTS PLC

STRATEGIC REPORT

FOR THE YEAR ENDED SEPTEMBER 30, 2021

The directors present the strategic report for the financial year ended September 30, 2021.

Primary activity

The Company’s core business is as a fan-driven, global team organization and lifestyle brand that places players in professional gaming competitions under the Guild banner. Our in-house training academy aims to attract and nurture the best esports talent, and our goal is to provide the ultimate entertainment experience alongside an authentic distinctive lifestyle brand for the esports community worldwide. . Guild is led by an experienced management team comprised of esports veterans and co-owned by David Beckham. The Company is headquartered in the United Kingdom and its shares are listed on the main market of the London Stock Exchange (ticker: GILD) and on the OTCQB Venture Market in the United States (ticker: GULDF).

Review of activity and future developments

On October 2, 2020, Guild Esports Plc was admitted to the official list of the UK Listing Authority through a listing on the standard segment of the London Stock Exchange. On December 16, 2021, the Company’s shares were traded on the US OTC market.

Guild has esports rosters competing at the highest levels of FIFA, Rocket League, Fortnite, Apex Legends and Valorant where Guild also features an all-female roster competing in the new Game Changers League, where Guild has led the charge in advocating equality in the game. With all rosters, Guild uses a performance philosophy, which includes a holistic approach to unlocking the full potential of every player, and provides a clear roadmap to earning trophies. Guild also launched a program to manage and drive player social channels and digital content creation, expanding Guild’s reach and growing its fan base. The company constantly assesses the esports landscape and plans to expand into new games, including mobile titles, to ensure that we maximize audience reach and best position the company for partnership opportunities. .

Operational report

Good progress has been made in our first full year, with growth in operations, esports, the launch of the Guild Academy and a growing fan base generating the media value needed to attract brand sponsors and generate revenue for the company.

The esports sector grew by 14.5% in 2021 and is now a billion dollar industry. Growth is expected to continue according to Newzoo and is expected to reach $1.6 billion by 2024. Total viewership is expected to grow from over 400 million to around 650 million over the same period.

Sponsorship

Guild has secured three sponsorships totaling £3.9 million in contract revenue since its stock market debut with leading brands in their respective industry sectors.

Hyper X, a leading gaming peripheral brand recently acquired by HP Inc from Kingston Technologies, which has a long association with the esports industry, became Guild’s exclusive peripheral partner in January 2021. As part of Under the two-year agreement, HyperX products will be used by our professional gamers, content creators and academy students as well as powering our London headquarters.

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