Credit: BLAST Premier and Michal Konkol

Heroic presents huge loss in annual report

The organization behind the current world leaders in CS:GO have revealed an alarming loss last year. According to an independent auditor, there's "significant uncertainty" about their continued operations.

2023-05-04 | @PleyTB

In March this year, it was reported that Heroic and the organization were in dire need of a cash injection in order to sustain its operations. According to a shareholder notice, the needed capital ran up to NOK 80 million ($7.5 million USD).

However now, following the publication of Heroic’s financial account for 2022, it can be seen that the company behind the successful CS:GO team has reported a massive loss of NOK 153 million, which is equivalent to $14.3 million USD.

Heroic AS, a sister company to Heroic Group, follow suit as it presents a loss of NOK 65 million ($6 million USD), setting the total loss at more than $20.3 million USD. Furthermore, it shows that the two companies have short-term debt for NOK 50 million ($4.7 million USD), which is required to be paid before the end of this year.

You can find takeaways and numbers from the report at the bottom of the article.

Uncertainties about future operations

In an independent auditor report made by Crowe, it's stated that there is significant uncertainty related to Heroic Group’s continued operations and that the company will require a cash injection to stay afloat.

- We draw attention to note 9, which states that the company incurred a loss of NOK 153.136.558 ($14.292.616,64 USD) in the financial year 2022, and that the company's book equity as of 31 December 2022 is NOK 62.638.158 ($5.846.175,41 USD). Furthermore, the budget and cash flow forecast for 2023 show that the company through the year will need an injection of capital for further operations. These conditions and other circumstances that are described in note 9, indicate that there is a significant uncertainty that could create significant doubt about the company's ability to continue operating. This relationship has no bearing on our conclusion about the annual accounts, a report by Crowe state.