- Esports entertainment company Allied Esports Entertainment reported a net loss of $8.8M USD for the first quarter of 2020, compared to a net loss of $3.9M in Q1 2019.
- The company generated $6M in net revenues, down 3% compared to the same period of 2019, while recording total costs and expenses of $14.1M during the period.
- The temporary closure of its flagship esports venue and cancellation of in-person World Poker Tour events caused a roughly 16% decline of in-person revenues.
Esports entertainment company Allied Esports Entertainment reported its financial earnings for the first quarter of 2020. The company generated net revenues of $6M for the period ended March 31, down 3% from $6.2M in the same period of last year. Company representatives primarily attribute the decrease to a loss of in-person revenues due to novel coronavirus (COVID-19) policies, which was partially offset by revenue growth in multiplatform content and interactive services.
Allied Esports Entertainment’s CEO Frank Ng explained in a release that “in the latter part of the quarter, it became clear that shelter-in-place orders would be issued in most cities in the United States and in other markets in which we operate around the globe, resulting in the temporary shut-down of the in-person pillar of our business strategy.”
The company’s in-person revenues for the quarter were $2.3M, a decline of roughly 16% compared to $2.7M in Q1 2019. On March 17, Allied Esports Entertainment temporarily closed its flagship esports venue, the HyperX Esports Arena Las Vegas at the Luxor Hotel & Casino and canceled several World Poker Tour in-person events due to the COVID-19 pandemic.
Prior to the temporary closure of the HyperX Esports Arena Las Vegas, 67 events were held in the venue during the first quarter of 2020. In response to the ongoing pandemic, the company shifted its events online and hosted 24 online tournaments between March 14 and March 31.
Allied Esports Entertainment’s multiplatform content and interactive revenues both experienced an increase as the company’s focus shifted to related products as a result of COVID-19 policies. Multiplatform content revenues increased by 10% year-over-year to $1.2M, while interactive revenues increased by 6% year-over-year to $2.5M.
In total, the company reported a net loss of $8.8M for Q1 2020 compared to a $3.9M net loss in the same period of 2019. Allied Esports Entertainment’s total costs and expenses increased from $10.1M in Q1 2019 to $14.1M in the first quarter of 2020.
