Danish esports organization Astralis has reported a net EBITDA loss of over DKK 31.3 million (~$4.8 million) in its draft consolidated financial statement for 2024, underscoring a turbulent year marked by structural changes in the esports ecosystem and poor competitive performance.
The report, published on astralis.gg/investor, outlines a series of challenges that have undermined Astralis’ financial position, including the dissolution of key franchise leagues and the continued underperformance of its once-dominant Counter-Strike team.
Franchise League Closures Deal Major Blow
A significant portion of Astralis’ revenue had come from franchise slots in BLAST Premier and ESL Pro League. However, Valve’s decision in August 2023 to discontinue franchise-based Counter-Strike 2 competitions led to the closure of both leagues in 2025. Astralis received its final franchise payments in early 2025, cutting off a major income stream.
“The closures had a direct impact on revenue,” the report states, citing the loss of regular payments tied to the franchise slots as a key factor in the EBITDA downturn.
Counter-Strike Woes Continue
Astralis’ flagship Counter-Strike division reported an EBITDA loss of DKK 19.3 million (~$2.98 million) for 2024. Despite continued investment in the main team, results failed to improve, which in turn affected commercial partnerships and sponsorship income.
The organization’s competitive struggles triggered a series of internal changes. Head of Performance Jan Ø. Jørgensen and Sports Director Kasper Straube Hansen exited the company in the first half of 2025. Additionally, Astralis shuttered its Women’s team at the end of 2024 and closed its Talent team in April 2025, focusing all resources on the main Counter-Strike squad.
Restructuring and Strategic Review Underway
In response to the financial downturn, Astralis consolidated operations in late 2024, closing all non-sporting and non-commercial activities. Management is currently pursuing a strategic review, first announced in 2023, to secure additional funding. Options include:
- A merger with another company
- A full or partial sale of company assets or shares
According to management, at least one of these options is expected to be completed in the coming months.
Concerns Over Future Operations
The report notes significant uncertainty regarding Astralis’ ability to continue operations unless new capital is injected. The organization is reliant on delayed receivables from the sale of its LEC (League of Legends European Championship) slot, with payments not due until late 2025 and 2026.
Still, management expressed confidence in their ability to maintain liquidity and has prepared the report under the assumption that Astralis will remain a going concern.
Leadership Changes and Outlook
Astralis saw a change in leadership during a turbulent 2024. Founder and board member Nikolaj Nyholm stepped in as CEO in January, before handing over the reins to former CFO Jakob Hansen in October.
Looking ahead, the company forecasts flat revenue for 2025 and an EBITDA loss between DKK 5 million and DKK 10 million, significantly lower than the losses recorded in 2024.
Despite the grim financial picture, Astralis management asserts that their investments in franchise rights and subsidiaries remain recoverable, and that the company’s assets continue to hold long-term value.
Read
Source Editing
Visual Editing
Related news
