NIP Group Inc. announced its unaudited financial results for the second half and full year of 2024 on April 30, 2025. For the full year 2024, total net revenues reached US$85.3 million, a 1.9% increase from US$83.7 million in 2023. However, gross profit for the full year declined to US$3.0 million from US$7.2 million in 2023, resulting in a gross margin of 3.5%, down from 8.6%.
The decrease in gross profit margin was primarily attributable to a decline in esports teams operation revenues. Selling and marketing expenses increased by 23.6% to US$8.1 million, mainly due to investments in the game publishing business. General and administrative expenses decreased by 22.9% to US$11.8 million, largely due to a decline in share-based compensation expenses.
NIP Group reported a net loss of US$12.7 million for the full year 2024, compared to a net loss of US$13.3 million in 2023. Adjusted EBITDA for the full year was negative US$9.9 million, a significant increase from negative US$1.7 million in 2023. As of December 31, 2024, cash and cash equivalents stood at US$9.6 million.
For the second half of 2024, total net revenues were US$45.9 million, a 1.8% increase year-over-year. Event production net revenues surged by 92.6% to US$14.6 million in the second half. Despite this, gross profit for the second half was US$0.6 million, with a gross margin of 1.4%, down from US$4.9 million and 10.9% respectively in the same period of 2023. Net loss for the second half was US$8.0 million, compared to US$2.0 million in the second half of 2023, and Adjusted EBITDA was negative US$7.3 million.
Management highlighted the company's transition from a pure esports organization to an integrated gaming-centric digital entertainment platform. Strategic initiatives include expanding core businesses, introducing new games, entering the hospitality market, and leveraging strategic funding from the Abu Dhabi Investment Office, the Guangxi government, and the Esports World Cup Foundation to drive sustainable growth in 2025 and beyond.
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