Allied Esports Entertainment have revealed their financial performance for the second quarter of 2021, up to June 30, including a $3m loss.
Describing themselves as an esports entertainment company, Allied Esports own and operate the HyperX Esports Arena in Las Vegas and portable arenas known as Allied Esports Trucks in both Europe and North America.
With the global health situation producing lockdowns in many places around the world, it’s been difficult for gamers to congregate at arenas to compete with, and against, their friends.
Allied Esports have struggled to generate substantial revenue despite the easing of restrictions in North America, making only $0.8m in the second quarter of 2021. This is a 33% increase over the second quarter in the previous year.
The loss for continuing their operations for the quarter amounted to $4.3m, with a rounded loss of $3m when adjusting for earnings before interest taxes, depreciation, and amortization (frequently referred to as EBITDA).
Allied Esports claim that they produced 81 events, 43 of which were third-party online and in-person productions, but are exploring a possible sale of the company “in order to maximize shareholder value.” They’re working with Lake Street Capital Markets to scope out potential buyers.
The company sold World Poker Tour, a previous business arm of the parent company outside of esports, for a total of $105m in July. They claim there’s “significant interest” in their esports business arm from consumers but there has been “no potential or particular buyer” identified at the time of publication.
“Overall, I am pleased with the steady progress of our Esports business as demonstrated by the 65% quarter over quarter growth in revenue,” said CEO Libing Wu.
“This growth was driven by the gradual recovery of the In-person pillar of our Esports business, as we slowly emerge from the COVID-19 pandemic and continue to benefit from the easing of mandated restrictions on live events and social gatherings.”