Business
Allied Esports Entertainment Announces Second Quarter 2022 Financial Results
NEW YORK--(BUSINESS WIRE)-- Allied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company” or “AESE”), a global esports entertainment company, today
About this update from Allied Gaming & Entertainment Inc.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nAllied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company” or “AESE”), a global esports entertainment company, today announced financial results for the second quarter ended June 30, 2022, as well as an update on key business initiatives. This release refers to “continuing” and “discontinued” operations due to the sale of the Company’s subsidiaries owning and operating its poker-related business, the World Poker Tour® (“World Poker Tour,” or “WPT®”) on July 12, 2021. Unless otherwise noted, results presented in this release relate to the continuing operations of the Company and its Allied Esports business, and excludes the operations of the World Poker Tour, which are classified as discontinued operations of the Company.\n\nCommenting on the second quarter 2022 results and strategic process, the Company’s Interim CEO, Lyle Berman, said, “Our Esports operations continue to drive strong year-over-year revenue growth as the business recovers from the pandemic. Momentum is building and we anticipate a strong second half of the year. In addition, we continue efforts to execute our previously stated objective to pursue strategic alternatives for the Esports operations, including a potential sale of the business. At the same time, I believe we are also making good progress to invest the cash on our balance sheet, along with any proceeds from the potential sale of the Esports business, to acquire or merge with an existing business. We will provide the market with an update on these activities as appropriate.”\n\nSecond Quarter 2022 Financial Results\n\nRevenues: Total revenues of $1.2 million increased 40% for the second quarter of 2022 compared to the second quarter of 2021. The improvement was driven by an increase in truck revenue from the Company’s agreement with NASCAR and an increase in rental and food and beverage revenue primarily attributable to the removal of COVID-19 pandemic related capacity restrictions at the Company’s HyperX Arena.\n\nCosts and expenses: Despite a second quarter 2022 impairment charge on digital assets (cryptocurrency) of $0.2 million and a $0.3 million increase in in-person and multiplatform content expenses directly associated with the growth in second quarter 2022 revenues, total costs and expenses for the second quarter of 2022 were $4.8 million, a decrease of 5% co...