Allied Esports sees losses narrow in Q2
Allied Esports Entertainment, the group that includes World Poker Tour (WPT), saw a big increase in revenue and a narrowing of operational losses in the most recent quarter.
In its Q2 results statement, Allied Esports - formed in December 2018 as a result of Black Ridge Acquisition Corp’s $213.8m (£168.9m/€186.7m) purchase of Allied Esports International and WPT Enterprises - said total revenues increased 17.7% to $7.3m compared to the first quarter of 2019.
Revenue growth in the quarter was driven by a $300,000 increase in in-person revenues primarily generated from the company’s flagship Esports Arena Las Vegas and gaming truck events, as well as a $800,000 increase in multiplatform revenues related to the distribution of WPT content.
Total second quarter 2019 revenue derived from WPT grew 5% month-on-month to $5.1m, while revenues from Allied Esports grew 60% to $2.3m over the previous quarter.
Total costs and expenses for the three months ended June 30 were $10.1m, consistent with Q1.
For the quarter, the business' adjusted loss before interest, taxes, depreciation and amortisation narrowed 35.5% to $1.0m. Operating losses declined from $3.9m in Q1 to $2.7m, while net loss after tax amounted to $2.8m, down from $3.9m in the previous quarter.
For the six months to 30 June, revenue amounted to $13.6m, up 39.7% year-on-year. Total expenses for the half fell 22.1% to $20.2m, after which Allied Esports posted an operating loss of $6.6m, down 59.2% from the prior year. After taxes, net loss for the period was reduced by 62.2% from the prior year, to $6.7m.
“In the second quarter and through the first half of 2019, we successfully executed on our business plan and are excited about how both Allied Esports and WPT are performing,” said Frank Ng, chief executive of Allied Esports.
“We are confident in our long-term strategy and look forward to continuing to drive growth and maximise shareholder value.”
Black Ridge Acquisition last December agreed a $213.8m deal to purchase the WPT Enterprises and Allied Esports International assets from Ourgame International Holdings and merge the two businesses to form a new entity.
At the time, Black Ridge said the combined operation, which would focus on providing in-person experiences, multi-platform content and interactive services across poker and video gaming, had the potential to cater to an audience estimated to be as large as 2.2bn people.