Japanese esports company GLOE reported flat revenue and deeper losses for fiscal 2023, while warning investors of a challenging year ahead as it ramps up spending on new services.
The Tokyo-based firm posted revenue of 2.26 billion yen ($15.3 million) for the year ended October, virtually unchanged from a year earlier. Net loss widened to 19 million yen from 5 million yen despite higher operating profit, as tax expenses increased.
GLOE’s traditional client services segment, which organizes gaming events, saw revenue drop 14% to 1.3 billion yen as major gaming companies scaled back promotional activities. However, the company’s brand production unit grew 27% to 959 million yen, driven by rising demand for influencer marketing and streaming services.
Looking ahead, GLOE forecasts revenue to climb 13% to 2.55 billion yen in fiscal 2024, but expects to swing to an operating loss of 45 million yen as it increases investment in new service development and personnel. The company cited additional costs from its streaming technology subsidiary acquired in June 2024 as another factor weighing on profitability.
