Company Modern times groupwhich includes eSports organizations Dreamhack and ESLissued an appeal to investors. It tells how much damage the COVID-19 pandemic will cause.
According to company analysts, in the first half of MTG’s revenues will decrease by 30-45%. Although in general the e-sports industry feels great online, one can not ignore that the main thing for ESL, DreamHack and similar organizations is large live events.
Due to widespread quarantine and limited mobility, organizers have to cancel and reschedule tournaments and championships. And this deprives them of profits from the sale of tickets, souvenirs and other services. The cancellation “at the last moment” when the participants have to return the money is a particular blow.
In the first quarter of 2023, MTG already expects to make a profit 25% less than planned. And this will only partially be offset by various measures like price cuts.
The e-sports industry brings Modern Times Group 40% of total revenue. The rest is gaming companies like Innogames and Kongregate. Previously, the company planned to divide the various sectors of its activities, but this decision has to be postponed due to COVID-19.
Since the start of the spread of coronavirus, all major e-sports championships have been canceled, transferred online or postponed until the summer. Organizers managed to “slip through” Intel Extreme Masters XIVbut they had to hold the event without spectators.
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