Esports and entertainment company Allied Esports has revealed its Q1 2022 financial results (ending March 31st 2022), with both revenue and operating costs higher than in the same period last year.
When it comes to numbers, Allied Esports recorded $2.2m (~£1.8m) in revenue from in-person events as well as $209,000 (~£170,000) from content. The costs of in-person events were around $1.8m (~£1.46m) whereas content costs amounted to just over $21,000 (~£17,000).
Similarly to other esports companies that are traded publically, Allied Esports did suffer a net loss. The first-quarter figure totalled $3.8 million (~£3m), which is up compared to a net loss of $3.3 million (£2.7m) in the previous period last year. However, the adjusted EBITDA loss was reduced to $2.5m (£2m) from $3.3m(£2.7m) in the previous year.
According to the report, Allied Esports is also increasingly looking toward content creation after the company saw good revenue growth.
In the report, Allied Esports’ Interim CEO, Lyle Berman, highlighted that the company is pleased with the performance of its esports business. He added: “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.”
Interestingly, Allied Esports also noted that the company approached The Benchmark Company, LLC to serve as an exclusive financial advisor. Allied Esports and Benchmark are looking for a company to acquire, and have around $90m of cash to spend, according to the report. This is following Allied Esports’ sale of the World Poker Tour last year.
The report does not mention what type of company Allied Esports plans on buying.
Allied Esports is perhaps most known for its HyperX Arena in Las Vegas, a 30,000 square foot esports venue. The company also operates Allied Esports Trucks, a series of travelling mobile gaming arenas in Europe and North America.
