Allied Esports Entertainment: Net loss widens despite 381% revenue growth for Q1

Allied Esports Entertainment has published its financial results for Q1, recording a 381% increase in revenue year-on-year.

allied esports q1 2022 gambling insider web image
Listen To Article

The company generated $2.4m in revenue for the first quarter of 2022, driven in large part by improved foot traffic to its HyperX Arena in Las Vegas due to an increased number of events post-Covid.

Other factors played a role in Allied’s considerable growth, including sponsorship revenue from the company’s original branded content offering, as well as first-time NFT sales.

However, this growth also incurred additional costs, spurring on a 15% rise in expenses, which climbed to $6.2m for Q1.

The company attributed this primarily to the increase of “in-person expenses due to the recovery of live in-person events.”

Given this, Allied’s net loss widened on a year-over-year basis, increasing to $3.8m from $3.3m. However, the company’s adjusted EBITDA loss actually shrank, decreasing by 24% to $2.5m.

As of 31 March, Allied’s cash position amounted to $95.7m, down from the previous quarter’s $97.9m. Moreover, the company possessed approximately 39.1 million shares of outstanding common stock.

Commenting on Allied’s Q1 performance, interim CEO Lyle Berman said: “I am very pleased with the operational performance of our esports business, which generated record revenue and adjusted EBITDA during the quarter and has continued to gain momentum as we emerge from the pandemic and move to a more normalised environment.

“This solid operational recovery is helping drive strong interest from outside parties as we move ahead with our previously stated objective to pursue strategic alternatives for the esports operations, including a potential sale of the business.”

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Chicken Ranch Casino
The Responsible Gambling Affiliate Association (RGAA)
Catena Media
Gambling Commission
Follow Us
The most prestigious Awards in the industry are heading to the Philippines! The Global Gaming Awards Asia-Pacific will recognise and reward (as the name suggests) the strongest performers from the Asia-Pacific gaming industry across the previous 12 months.
This year's winners will be announced at a luncheon ceremony on Day 2 of SiGMA Asia, 4th June, in Manila.
The eleventh annual Global Gaming Awards Americas will recognize and reward the gaming industry's strongest performers across the previous 12 months. These are the most prestigious and trusted Awards in the industry and have gained respect amongst industry heavyweights, due to the strict rules and procedures put in place.

Facing Facts: Operator Q3s from across the globe

Gambling Insider compares Q3 2023 results from major gamblin...

Taking Stock: Operators and suppliers across the world

Sticking with our theme of gambling across the globe, Gambli...

CEO Special: Jade Entertainment and Gaming CEO Joe Pisano - down to earth

Jade Entertainment and Gaming CEO Joe Pisano speaks to Gambl...

CEO Special: Betfred CEO Joanne Whittaker - saying it as it is

Betfred CEO Joanne Whittaker joins Gambling Insider Editor T...