Allied Esports Entertainment Reports Net Loss of $4.3M, 85 Events Held At HyperX Esports Arena Las Vegas
- Allied Esports Entertainment reported a net loss of $4.3M USD in its first quarterly earnings since being formed in August.
- The company generated $6M in Q3 2019 total net revenues, up 10.2% year-over-year (YoY) from $5.5M.
- During the third quarter, Allied Esports held 85 events at its flagship venue, the HyperX Esports Arena Las Vegas.
Today, esports entertainment company Allied Esports Entertainment announced its financial results for Q3 2019 for the period ended Sept. 30. Allied Esports Entertainment was formed on Aug. 9, 2019, as a result of the completion of a business combination among Black Ridge Acquisition, Allied Esports International, WPT Enterprises, and other affiliates.
The company’s total net revenues in the third quarter of 2019 increased 10.2% to $6.0M from $5.5M in Q3 2018, reflecting growth from all strategic pillars (in-person, multiplatform content, and interactive).
Allied Esports Entertainment’s in-person revenues increased by 17%, to approximately $2.6M for the third quarter of 2019. The increase in in-person revenues was driven by the Allied Esports business, particularly revenue generated from Allied Esports’ flagship venue, the HyperX Esports Arena Las Vegas, at which the company held 85 events during the quarter.
The other two strategic pillars generated a combined $3.4M in revenues primarily attributable to WPT business. In total, the company reported a net loss of $4.3M, compared to a net loss of $6.7M in Q3 2018.
“In our first quarter as a public esports company, Allied Esports delivered solid results driven by continued execution of our operating model along with early benefits from our strategic alliances with Simon and TV Azteca,” said Frank Ng, Allied Esports Entertainment CEO, commenting on the Q3 results. “I am also pleased with the progress we are making in our partnership with our strategic investors, Simon and TV Azteca, as evidenced by the launch of the Simon Cup esports tournament as well as the premiere of WPT television programming and social gaming in Mexico across various distribution channels via TV Azteca.”
Furthermore, the HyperX Esports Trucks in North America and in Europe activated with sponsors such as HyperX, Lenovo, Intel, Warsteiner, and Acer, and were deployed at eight events, including Gamescom and Wacken Open Air.
Fortress Esports, the newest member of the Allied Esports Property Network covering Australia and New Zealand, announced the planned opening of its first location in 2020 at Australia’s largest shopping mall, Emporium, in Melbourne, Australia.
Allied Esports and TV Azteca produced two esports events out of Mexico City: Glory Road, a Smash Ultimate event, and Kombat to Glory, a Mortal Kombat event. The events were live-streamed across TV Azteca’s social and digital platforms.