Esports holding company NIP Group has announced its unaudited financial results for the first half of 2024.
The company generated net revenues of $39.3m (~£31.02m), slightly higher than the same period in 2023, $38.6m (~£30.47m). Gross profit for the first half of 2024 was $2.4m (~£1.89m), consistent with the numbers generated from H1 in the previous year ($2.3m, ~£1.82m).
Net losses amounted to $4.7m (~£3.71m) in the first half of 2024, a sharp decrease from the $11.3m (~£8.92m) loss in 2023. According to the company, the H1 2024 loss decrease was mainly attributed to a reduction in general and administrative expenses by 56.6% due to a decline in share-based compensation expenses.
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While revenues have been somewhat consistent, NIP has achieved strong growth from its event production business, generating over $8.8m (~£7.00m). Its talent management service and esports team operations achieved $21.9m (~£17.29m) and $8.8m (~£6.95m) in revenues, respectively.
In terms of costs, NIP decreased its investments in esports team operations and talent management services and increased those coming from event production, which has been proportional to the revenues generated.
Aside from the financial results, NIP made headlines when it completed its IPO on NASDAQ in July 2024, raising over $20m (~£15.79m) of capital. As of today, NIP is trading at a price of $4.38 (~£3.46) per share.
In the past months, the company announced strategic partnerships with key stakeholders such as Homeinns Hotels Group and The9’s subsidiary China Crown to develop video Game ‘MIR M’ into a competitive esports title. It announced its entry into the game publishing market in September.
Additionally, the company acquired Young Will, a talent management company specialising in short-form video content creation and influencer development. It also formalised a term sheet with the Abu Dhabi Investment Office (“ADIO”) as the company is looking to expand in the MENA region.
Mario Ho, Chairman and Co-CEO of NIP Group, commented: “The first half of 2024 marked a pivotal phase in our company’s evolution from an esports-focused enterprise to a comprehensive gaming company. We have successfully laid the groundwork for our revenue diversification through strategic initiatives in game publishing, talent management upgrades, and sports-themed hospitality services, while expanding our operations to encompass the Middle East market.
“These moves reflect our commitment to building a more well-rounded and robust organization. Meanwhile, our recent public listing provides us with enhanced access to capital markets, potentially accelerating our future growth initiatives. Through these strategic shifts, we are maintaining our revenue growth trajectory while expediting our path to profitability.”
