Allied Esports reveals losses as COVID-19 continues to wreak havoc
Yesterday we reported that, financially speaking, the first half of 2021 was a bit of a rough one for Toronto-based esports company OverActive Media—that thanks to losing $8.2 million in the first six months. Other esports enterprises have had similarly challenging rides. America’s Allied Esports has revealed losses of $3.8 million for the second quarter of 2021.
The company owns the Las Vegas-located HyperX Esports Arena, as well as Allied Esports Trucks which operate on both sides of the Atlantic. Those trucks basically operate as rolling esports gaming centres.
Thanks in no small part to COVID-19 gamers and esports fans haven’t exactly been packing the arenas or the seats in the Allied Esports Trucks.
As a result Allied pulled in just $1 million is the second quarter of this year, that representing a 33 percent increased of the same period in a locked-down 2020.
In a release, Allied Esports CEO Libing (Claire) Wu said: “Commenting on the second quarter 2021 results, the Company’s CEO, Libing (Claire) Wu, said, “Overall, I am pleased with the steady progress of our Esports business as demonstrated by the 65% quarter over quarter growth in revenue. 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. In addition, during the second quarter we saw the early revenue contributions from our Multiplatform Content pillar.
“While the resumption of In-person events will be an important growth driver of our Esports revenue in the near term,” she continues, “we have also made good progress over the last several quarters building-out capabilities within our Multiplatform Content pillar. During the quarter, we announced the launch of AE Studios, which will serve as the original content development, storytelling and production services arm for partners of Allied Esports.”
She noted that the selling of the Allied-owned World Poker Tour has solved a liquidity problem that was keeping the company from moving ahead. So even though Allied Esports has revealed losses, there’s an upside.
“With over $100 million of cash today,” Wu notes, “we have significant financial flexibility as we look to maximize shareholder value through the utilization of our cash and concluding our strategic exploratory process for our esports business.”
Moving forward watch for Allied to explore business opportunities in online entertainment, real money gaming and other gaming sectors.