ESL, DreamHack parent Co. expects major revenue loss

The parent company for ESL and DreamHack expects a 35-45 percent decline in esports revenue in the first half of 2020 due to disruptions from the coronavirus pandemic. According to a report Monday in Esports Observer, Modern Times Group (MTG) cited the reduction in live events revenues -- including media rights, brand partnerships ticketing and merchandise sales.

There was no audience at February's Intel Extreme Masters in Katowice, Poland, for example. MTG said it is hoping to offset some of the negative impacts of the current health crisis by creating new business opportunities.

MTG will also attempt to save at least $15 million by reducing costs during the upcoming second fiscal quarter. Despite the unexpected events, the company reported that it remains well funded with a net cash position of $179 million as of the fourth quarter of 2019, per arena-esport.com.

 

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