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.”