Business
Allied Esports Entertainment Announces Second Quarter 2020 Financial Results
IRVINE, Calif.--(BUSINESS WIRE)-- Allied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company”), a global esports entertainment company, today announced
About this update from Allied Gaming & Entertainment Inc.
[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nAllied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company”), a global esports entertainment company, today announced its financial results for the second quarter ended June 30, 2020, as well as an update on several key business initiatives.\n\n\nCommenting on the second quarter results, the Company’s CEO, Frank Ng, said, “Throughout the second quarter, we continued to operate in an extremely challenging environment arising from the ongoing COVID-19 pandemic. The shelter-in-place orders that extended for the majority of the second quarter resulted in the temporary shut-down of the In-person pillar of our business activities, which negatively affected our second quarter financial performance. Given this reality, we quickly shifted our strategic focus to the Multiplatform Content and Interactive Services pillars in order to mitigate the impact of the pandemic on our business and continue to serve our loyal communities. Overall, I am proud of our employees’ steadfast dedication and commitment, as well as the team’s ability to rapidly pivot and manage through this pandemic.”\n\n\nMr. Ng continued, “An important highlight in the second quarter was the successful refinancing of $14.0 million of outstanding debt and $3.7 million of accrued interest previously scheduled to mature on August 23, 2020. By extending the debt maturities for up to an additional two years, we have significantly enhanced our financial flexibility as we continue to navigate economic uncertainties during the pandemic, while working to create value and growth for the future.”\n\n\nSecond Quarter 2020 Financial Results\n\n\nRevenues: Total revenues in the second quarter of 2020 decreased 38%, to $4.6 million from $7.3 million in the second quarter of 2019, primarily due to decreased In-person and Multiplatform Content revenues as a result of the COVID-19 pandemic and shelter-in-place orders, partially offset by revenue growth in Interactive Services.\n\n\nIn-person revenues declined approximately 78%, to $0.7 million for the second quarter of 2020, from $3.2 million in the second quarter of last year. The decrease in In-person revenues was primarily related to the temporary closure of the Company’s flagship esports venue, HyperX Esports Arena Las Vegas at the Luxor Hotel & Casino, throughout most of the second quarter, and t...