ESL FACEIT Group: What the financials tell us about the major esports tournament organizer

When it comes to the esports companies, there aren’t many that can surpass the size of ESL FACEIT Group (EFG). The company, which merged in 2022, was purchased by Saudi Arabian government-backed Savvy Games Group for a combined value of $1.5 billion, making it one of the biggest investments in the industry in recent times.

Between ESL’s tournament business, which also includes being the Official Operating Partner of the Esports World Cup in Saudi Arabia, DreamHack’s festival and event operations, and FACEIT’s competitive platform, EFG comes with great importance in the industry. In fact, ESL runs different companies across the continent, with dedicated subsidiaries in Germany, Spain, Denmark, France, Poland, Saudi Arabia, United States of America, Australia, Singapore, and Malaysia, among others.

Moreover, the company had previously acquired other esports-related companies, such as technology and infrastructure company Vindex, production company Esports Engine, and most recently Gamers Net Inc., which was acquired at the end of 2024. The latter is known for operating Mobalytics, a platform that provides visual analytics and performance data for several esports titles, such as League of Legends, Teamfight Tactics, and Overwatch.

Despite the transactions and milestones achieved by EFG over the years, the company still suffers from the same fundamental issue that has plagued basically everyone in the industry: profitability. Today, we will be breaking down the financials from one of the key companies within EFG’s corporate structure, shedding more light on the ties with the Saudis, and explaining why the FY2024 results were likely behind the strategic choices made in 2025.

While ESL FACEIT Group Limited is not the whole representation of the group, its 2024 accounts offer a clear overview of how things have been running after Savvy’s acquisition.

In 2024, the London-based entity saw its revenues rise to £27.8m, nearly doubling compared to the previous year (£14.5m). Revenues comprised mainly of subscriptions (£11.1m), intergroup commission and support services (£11.0m), as well as advertising and sponsorship (£5.1m)

Despite the substantial increase in revenues, the overall operational profitability is not yet at breakeven but is expected to reach it in the coming years. While gross profits went up by £1.2m to £8.7m (compared to £7.5m in 2023), gross margins were down from 51% to 31%, meaning that costs to deliver the services were much higher this year.

And considering administrative expenses were still above the £40 million mark (£43.6m), the company’s operating losses landed at £26.1m.

An EFG representative commented on the expectations for 2025: “2025 was a year of intentional transformation. While we are incredibly proud of nearly tripling our revenue and seeing record-breaking growth across DreamHack and FACEIT, it has been a phase of heavy reinvestment and integration. We spent the last year consolidating our assets, streamlining operations, and removing the complexities that come with rapid expansion. As we move into 2026, the focus shifts from building that foundation to harvesting the efficiencies we’ve created, positioning EFG for a much more profitable and sustainable future.”

The company recorded a £31.5 million impairment, due to worsening economic conditions and a revaluation of its assets. Although this charge does not directly affect cash flow, it reduces the long-term value of the business. It is worth noting that this loss is only one-fifth of the previous year’s, showing that the company had already absorbed a large part of the decrease in asset value, suggesting the company is beginning to stabilise and may face fewer significant adjustments going forward.

The financial numbers, however, did not stop EFG from trying to expand. The average headcount grew to 164 from 149 in 2023, with both staff costs (£27.3m) and R&D expenses increasing (£7.2m).

Moreover, the balance sheet highlighted a major shift in the company’s importance within the group. Receivables — the money owed to EFG — jumped from £19.2m to £87.4m in a single year, with £34.0m in contract assets and £56.8m owed to fellow group undertakings. It’s no longer just generating turnover from services; it’s starting to act as a coordinator within the group.

This is further backed by the increase in revenue shares coming from intergroup commission and support services, suggesting that the UK’s entity established its repositioning within the group, which previously used to rely on the German-based entity, ESL Gaming GmbH.

According to the latest financial records we were able to retrieve, the latter had recorded over €260.4 million in revenues in the FY 2023, ten times higher than the turnover from the UK entity which points to a complementary dynamic, where EFG UK provides group-level oversight as the parent company, and ESL Gaming GmbH sustains its role as the esports backbone of the Group.

So, considering the difference, why would EFG centralize its operations in the UK entity?

There are a couple of plausible reasons behind this choice. The first one is related to the post-acquisition integration. After combining and acquiring companies in previous years, EFG wanted to simplify the processes of how contracts are signed, how services are billed, and how revenue is recognized. Instead of having commercial activities scattered across multiple European operating companies, the group can route more of that activity through one entity that acts as a central contracting and coordination hub. This also explains why the intercommission revenues have grown substantially in 2024 compared to 2023.

This change, in turn, also guarantees better commercial flexibility. With the UK-based entity, the company can sign contracts on behalf of the wider group, while other subsidiaries deliver parts of the work and services, which can be particularly useful for a company that runs so many events like EFG.

The other main reason that must not be overlooked, however, is the presence of Savvy Esports Investment Limited, ESL FACE IT Group Limited’s parent company, as a London-based entity.

Incorporated in 2022, Savvy Esports Investment Limited is part of Savvy Games Group and it is the investment vehicle used to provide the needed funds to EFG. As of December 31, 2024, the company, in fact, owns 67% of the issued share capital in EFG UK, where the latter made further investments to acquire both Vindex (Vindex LLC) and Gamers Net Inc. (Mobalytics).

“Savvy Games Group has been the catalyst that allowed us to move from a fragmented landscape to a unified global leader. Their backing has given us the ability to focus long-term, making strategic decisions that prioritise the health of the esports ecosystem over short-term wins. Under this structure, EFG leadership remains the driver of our strategy. We’ve used this period of growth to evaluate every facet of our business, ensuring we are as agile as we are large. The result is a company that has the scale of a global leader but the speed of a digital-first platform,” the EFG representative added.

Having both the investment and operational companies in the same country can make the overall structure easier to manage from both a governance and operational standpoint. It reduces frictions that can come with running a cross-border structure since they would both work with the same legal and corporate framework, while also making financing decisions more quickly and coordination of fund flows more efficient.

The 2024 financial numbers essentially set the conditions for everything that followed. In 2025, ESL FACEIT Group Limited acquired the entire share capital of fellow group undertaking ESL Gaming GmbH for £558.6m, bringing the German entity fully under the UK’s ownership.

Last year in February, Esports Engine closed its facility in Burbank, California and underwent a second wave of layoffs following the acquisition by EFG. The company also saw co-CEO Craig Levine step down from his position, with Niccolo Maisto becoming the sole CEO of the group.

EFG itself also cut its global workforce later in October, with the layoffs estimated to be between 200 and 300 employees across multiple departments. According to a report by independent journalist Richard Lewis, Savvy Games Group wants to turn EFG profitable by 2026, making this year a decisive period.

When asked about ambitions for the future, the EFG representative said: "Our ambition is clear: to be the home for the world’s gamers. Having successfully navigated the complexities of our recent expansion, EFG is entering 2026 with a sharpened focus on several key drivers designed to ensure a sustainable and profitable future.”

“We are deepening the integration between FACEIT’s digital community and our physical world-class events while simultaneously taking the DreamHack experience to new territories where gaming culture is exploding. Furthermore, we are committed to commercial innovation by creating more sophisticated, data-driven value for our brand partners. We aren’t just looking to lead the esports industry; we are looking to set the standard for how gaming, competition, and community intersect. The 'rebuilding' phase is behind us; the 'acceleration' phase begins now,” he added.