World Chess (CHSS) , a London-based chess gaming and entertainment company, announced its financial results for the year ended December 31, 2024 (FY24).
World Chess reported annual revenues of €2.43m, a modest increase from last year's €2.34m. Net loss before tax narrowed significantly to €3.84m from €4.67m in FY23, while gross profit jumped to €889k from €179k last year. The fivefold increase in gross profit was attributed to CHSS' shift toward higher-margin digital offerings and increased operational efficiency.
In terms of product development, the most significant milestone was CHSS' October 2024 announcement of World Chess Tour, its global series of tournaments modelled after the ATP tennis tour. Prior to this, in May 2024, World Chess unveiled a major interface overhaul of FIDE Online Arena, the International Chess Federation's official gaming platform run by CHSS.
In terms of balance sheet, CHSS secured a €6m loan facility in December 2024 that will be used to refinance existing short-term debt and support near-term growth. CHSS also secured a €1.2m subscription agreement in September 2024 with Blitz Intelligence FZCO, a gaming technology consultancy.
Also in September 2024, CHSS extended its partnership with Algorand, continuing the collaboration to integrate blockchain technology into CHSS' gaming ecosystem.
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World Chess reports strong financial and operational progress for FY24 as it continues to develop its online gaming platform chessarena.com a.k.a. FIDE Online Arena. CHSS has an exclusive license to run the platform from FIDE, the world's governing chess body and member of the International Olympic Committee.
Chessarena.com underwent a full redesign in May 2024 and is set to host the upcoming World Chess Tour, modelled after the ATP Tour in tennis. WTC is will feature chess' biggest stars in a series of tournaments with a c. US$1m prize pool. With an expected 60 global broadcast partners, WCT should offer significant exposure through live events, online platforms, and televised matches.
CHSS reported a 5x increase in gross profit to €889k as it shifted toward higher-margin offerings and lowered costs through operational efficiencies. The improved profitability lays a solid foundation for sustained growth and long-term financial stability, as CHSS solidifies its position as the go-to platform for elite online chess tournaments.
Looking ahead, the €6m loan secured in September 2024 and other investments during the period should keep CHSS funded in the near-term to continue product development and platform expansion. Beyond this, additional financing will be needed to support the company during its growth phase.
CHSS's exclusive license for FIDE Online Arena gives it a significant competitive advantage, supporting rapid footprint expansion with millions of users worldwide already playing. The global chess market was valued at US$2.5bn in 2023 and is projected to grow to $3.8bn by 2032, with rising interest fueled by pop culture and shows like The Queen's Gambit.
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