Business
Allied Esports Entertainment Announces First Quarter 2020 Financial Results
Successful strategic pivot to online events in response to the ongoing COVID-19 pandemic IRVINE, Calif.--(BUSINESS WIRE)-- Allied Esports Entertainment, Inc.
About this update from Allied Gaming & Entertainment Inc.
[{"type":"text","content":"\nSuccessful strategic pivot to online events in response to the ongoing COVID-19 pandemic\n\n IRVINE, Calif.--(BUSINESS WIRE)--\nAllied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company”), a global esports entertainment company, today announced its financial results for the first quarter ended March 31, 2020, as well as an update on several key business initiatives.\n\n\nCommenting on the Company’s first quarter results, the Company’s CEO, Frank Ng, said, “In the latter part of the quarter, it became clear that shelter-in-place orders would be issued in most cities in the United States and in other markets in which we operate around the globe, resulting in the temporary shut-down of the In-person pillar of our business strategy. With our team’s operational agility, we were able to rapidly pivot in the face of this adversity. We made the quick and strategic decision to shift our focus on content and online services in order to continue to serve our loyal communities and our industries at a time when they need us most.”\n\n\nMr. Ng continued, “While the COVID-19 pandemic impacted our results in the first quarter, I am reassured by the tremendous popularity of esports and poker, including WPT’s meaningful subscriber growth in March, as the nation and world remains at home. I firmly believe that our unique position will not only carry us through the difficulty and uncertainty driven by the pandemic, but will also provide an opportunity to expand our customer base once the crisis ends and life returns to normal. We look forward to continuing to serve our customers and the gaming community and emerging from this challenge as a stronger company.”\n\n\nFirst Quarter 2020 Financial Results\n\n\nRevenues: Total revenues in the first quarter of 2020 decreased 3% to $6.0 million from $6.2 million in the first quarter of 2019, primarily due to decreased In-person revenues from the COVID-19 pandemic and shelter-in-place orders, partially offset by revenue growth in the Multiplatform Content and Interactive Services.\n\n\nIn-person revenues declined approximately 16%, to $2.3 million for the first quarter of 2020 from $2.7 million in the first quarter of last year. The decrease in In-person revenues relate primarily to the temporary closure of the company’s flagship esports venue, HyperX Esports Arena Las Vegas at the Luxor Hotel & Cas...