The Danish Esports Organisation Astralis Group published its first Annual Report in which the group reported total revenue of $7.1M and a net loss of $5M for the year 2019. The group also became the first Esports organization to publicly list itself on Nasdaq Copenhagen and offer its IPO in November 2019 for a base price of kr10 (approx $1.45). Since then the share has lost more than 60% value and currently trades at kr4.5 (approx $0.66).
Currently, The Astralis Group owns 3 esports teams:- Astralis (CS:GO), Origen (League of Legends) and Future Football Club (FIFA 19/20). The previous owner of these teams, RFRSH ApS also had a history of running on losses and following a management buyout in August 2019, these came together and formed The Astralis Group.
The Group also reported about the revenue generated by each team and according to that Astralis generated 81% ($5.7M), Origen 16 % ($1.14M) and Future FC 3% ($0.26M). Meanwhile, each team other than Future Fc made a loss overall.
Astralis won six tournaments throughout 2019 while spending $6.5M in operating expenses and made a loss of $728K. Although Astralis won their third consecutive CS:GO Major and fourth Major title in total, the loss is in fact caused by a higher payout of prize money to the players due to which Astralis saw very little of that prize money.
The report also highlighted about potential risks of Novel Coronavirus which has “the potential to impact sponsorship revenue if both existing or potential sponsors aren’t able to utilize their sponsorship in certain markets or if Astralis Group is unable to fulfill its obligations towards agreements.”