Parent company of global esports organisation Ninjas in Pyjamas, NIP Group (NIP), has published its latest report for the 2024 financial year.
NIP Group lost over $12 million in 2024 financial year amid challenges to profitability in the industry
The company generated $85.3m (~) in total revenues for the year, increasing by 1.9% compared to the previous year. A large part of the revenues was driven by event production, which saw a 147.5% annual increase. Gross profit was reported to be $3m (~), decreasing from 2023’s $7.2m (~).
Overall net loss was $12.7m (~), marginally lower than the losses in 2023 ($13.3m, ~). The company shows that company is struggling heading into 2025, although NIP has been working towards diversifying its revenue streams into new segments such as publishing and hospitality ventures.
Mario Ho, Chairman and Co-CEO of NIP Group, commented on the financial results: “2024 tested the entire industry. Despite this challenging backdrop, we maintained modest top‑line growth in the second half and for the full year, highlighting the resilience of our model. As we continue to integrate our businesses and diversify our revenue streams, event production has become a compelling growth engine, with revenues surging 92.6% year-over-year in the second half of the year and more than doubling for the full year.”
NIP Key Figures and Numbers
Event Production
Revenue: $23.3M (~€20.59M, +147.5% YoY)
Cost of Revenue: $20.9M (~€18.47M)
Gross Profit: $2.4M (~€2,12M, +71.4% YoY)
Gross Margin: 10.1% (-15.0% YoY)
Talent Management Services
Revenue: $47.3M (~€41.79M, ↓ 10.1%)
Cost of Revenue: $49.1M (~€43.38)
Gross Loss: ($1.9M) (~€ -1.68M, ↑ from $0.8M loss)
Gross Margin: -3.9% (↓ from -1.6%)
Esports Teams Operations
Revenue: $14.7M (~€12.99M, ↓ 32.0%)
Cost of Revenue: $12.2M (~€10.78M)
Gross Profit: $2.5M (~€2.21M, ↓ from $6.6M)
Gross Margin: 17.1% (↓ from 30.6%)
The company has been increasing its event volume and integration capabilities, driving major increases in revenues. That being said, the overall margin was impacted by rising costs.
Talent management services still play a major part in the overall company’s business model, accounting for over 55% of the total revenue. Profitability was hurt by fixed amortization and a pivot to higher-performing platforms that haven’t translated into margin recovery. In 2023, the company’s revenues from this business line were $52.61m (~€46.48m).
NIP has been slowly moving its focus away from its esports teams’ operations. The revenue decline was caused by decreases in sponsorship revenues and IP licensing in a difficult year for the whole esports industry. Revenues were nearly reduced by a third, and gross margins also decreased by more than 13%.
Last month, the esports team unveiled its new home venue in Shenzhen after forming a partnership with Shenzhen Poly Culture Dev. Co Ltd. The venue has a maximum capacity of over 2,000 spectators, increasing from the previous one of 445, and it will be used by the League of Legends Professional League (LPL) for official matches.
Image Credit: Ninjas in Pyjamas
NIP Group is undergoing a major strategic transition. FY2024 reveals the early pains of diversification: revenue mix is improving, but execution challenges and cost inflation are eating into margins. The company may see higher losses if the new revenue lines don’t mature fast enough.
Based on the ratios calculated, the company’s financial health is in an overall fragile state. ROI on the new ventures will determine the margin recovery in the coming year and the company’s ability to reach profitability in the 2025 financial year.
The company had a major swing in equity of $310m (~273.9m) due to the conversion of $322m (~€284.5m) in redeemable preferred shares (mezzanine equity) into common shares after the IPO. NIP Group is currently trading at a price of $1.66 (~€1.47) per share on the Nasdaq Global Market, a major decrease from the IPO at $9.02 (~€7.97). Other key financial numbers from the 2024 financial year are:
Cash & Short-term Investments: $12.6M (~€11.13M)
Accounts Receivable: $28.4M (~€25.09M)
Total Liabilities: $70.1M (~€61.94M)
Equity: $239.5M (~€211.61M)
NIP Group’s Ambitions heading into 2025
NIP Group’s report also covered key development plans for 2025, including strategic funding and a geographic pivot to the Middle East. Earlier this year, the company announced a multi-year partnership with ADIO Holdings Restricted Limited (ADIO) for a $40m (~€35.34m) financial backing upon meeting conditions and performance milestones.
The company is looking to expand its presence in the MENA region. Paired with the admission to the Esports World Cup Foundation Partner Program for extra funding, NIP Group wants to leverage the new market and the resources in the region.
Hicham Chahine, Co-CEO of NIP Group, commented on the strategic expansion in MENA: “By anchoring our strategic initiatives in Abu Dhabi, we are tapping into a vibrant, youthful market that is quickly emerging as the newest global gaming hub. With resources on the ground and our years of experience, we can empower local talent, foster grassroots ecosystems, and continue expanding our integrated platform that now spans esports teams, arenas & events, content & influencer networks, game publishing and hospitality.”
Other key highlights include a renewed partnership with Red Bull and the collaboration with Optics Valley Traffic Company in February 2025 to create an entertainment hub under Wuhan East Railway Station. In the publishing section, NIP has partnered with The9 Limited in November 2024 to develop ‘MIR M’ into a competitive esports title and published the sci-fi MOBA game ‘Re: Aetatis’ in December 2024.
Conversions are calculated with the exchange rate as of May 6, 2025: $1 = €0.88.
If there’s one thing Davide knows better than his morning coffee, it’s League of Legends. He has spent more than 10 years playing the game. When he’s not writing, he’s probably playing padel or pretending to work while actually watching esports tournaments.
