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Allied Esports Entertainment Announces Third 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 third quarter ended September 30, 2022. 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 third quarter 2022 results and strategic process, the Company’s Chief Executive Officer, Yinghua Chen, said, “As the recovery of our Esports operations continues to gain momentum, we delivered strong sequential quarter revenue growth of 35%. With a robust slate of Esports events scheduled for the fourth quarter, we expect a strong finish to the year. I am also very pleased with our continued progress in evaluating strategic alternatives for our business, including investing the cash on our balance sheet for M&A opportunities to generate profitable growth and drive shareholder value. We intend to provide the market with an update on these activities at the appropriate time.”\n\nThird Quarter 2022 Financial Results\n\nRevenues: Total revenues of $1.6 million decreased 7% for the third quarter of 2022 compared to the third quarter of 2021, but were up 35% from the second quarter of 2022. The decline from the third quarter of 2021 was driven by a year-over-year reduction in our multi-platform content revenues, most notably from live streaming events with Trovo. The sequential improvement was primarily driven by an increase in proprietary and third-party production events at our Esports arena.\n\nCosts and expenses: Total costs and expenses for the third quarter of 2022 were $3.3 million, a decrease of 42% compared to the third quarter of 2021. The net decrease in costs and expenses is primarily due to a $1.0 million, or 29%, reduction in general and administrative expenses, consisting primarily of severance payments to a former executive and professional fees related to the sale of WPT as well as a $1.1 m...