Hall of Fame Resort & Entertainment Company has recorded a second quarter net loss of $9.1m.
Despite reporting a revenue increase of 14%, up from $2.4m to $2.7m, rising expenses and a significantly lower sum gained through a “change in fair value of warrant liability” pushed Hall of Fame into the red on a year-over-year basis.
The company saw a net income of $15.5m turn into a net loss of more than $9m. However, Q2 of last year does not necessarily offer a favourable comparison.
The majority of the prior-year period’s profit was generated from a $26.3m sum gained through the aforementioned change. When Hall of Fame’s half-year results are compared, a much more favourable picture is painted.
While the company has still recorded a net loss of $17m for H1, this represents a considerable improvement on last year’s $110.6m net loss.
In addition, Hall of Fame’s adjusted EBITDA loss for Q2 widened, increasing to $6.1m from $5.6m. The company attributed this to increased expenses, specifically those related to payroll, benefits and insurance costs.
Michael Crawford, Hall of Fame’s President and CEO, expressed an optimistic outlook, calling Q2 an “inflection point.”
“This quarter represented an inflection point in the company’s evolution as we operationalise and build upon the physical and virtual foundation that has been set over the past couple of years,” he said. “We’ve made key plays across all business verticals, and we continue to move the ball down the field.”
Following the conclusion of Q2, Hall of Fame has made several moves, perhaps most notably an early investment in Betr, a new platform fronted by social media personality Jake Paul.