Note the part we will hear who our investor is soon - well before January
NEW SKY MANDATE FOR GUILD STUDIOS
Tennyson Securities, Technology Research
7 December 2023
UK-listed esports group, Guild Esports has announced a new mandate from Sky Broadband for its production & creative arm, Guild Studios, as the same unit passes the milestone of having generated over $1.1 million in revenues since its creation at the start of 2023. Guild Studios has already delivered campaigns for consumer brands such as Samsung, Coca-Cola, Subway and the blood cancer charity, Anthony Nolan. For Sky Broadband, Guild Studios has been named the Official Activation Partner for 2024, and its exclusive mandate covers a suite of services such as production & design, creative and project management throughout the first half of the year. The early success of Guild Studios is a key part of the company’s strategy to exploit a variety of esports-related revenue streams beyond its core sponsorship income. The unit partners with clients on targeted campaigns which connect with the hard-to-reach Gen Z and Gen Alpha demographic groups that are interested in gaming-related content.
The new mandate with Sky also further deepens the company’s most important client relationship. Along with its original record-breaking sponsorship deal with Sky Broadband, Guild was recently appointed Official Television Partner by Sky Glass, Sky’s smart TV & streaming unit, Sky invested a “six figure sum” in the refurbishment of the entire Sky Guild Gaming Centre in Shoreditch, and Guild collaborated with Sky on launching a livestreamed Street Fighter tournament earlier this quarter. Following the recent announcement of a £1m investment from a new strategic partner (of which £500K has been invested so far), management said it would announce more details on the investor and the plans for the commercial partnership between the two parties before the final scheduled payment in January. However, it expects ‘significant synergies’ to arise from the deal. Funds raised will be used both for working capital and to accelerate expansion plans in the Middle East & North Africa region, where the Saudi authorities recently unveiled the eSports World Cup, which is expected to carry the largest prize pool in esports history when it is launched.