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Allied Gaming & Entertainment Announces Second Quarter 2023 Financial Results
NEW YORK--(BUSINESS WIRE)-- Allied Gaming & Entertainment, Inc. (NASDAQ: AGAE) (the “Company” or “AGAE”), a global experiential entertainment company, today
About this update from Allied Gaming & Entertainment Inc.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nAllied Gaming & Entertainment, Inc. (NASDAQ: AGAE) (the “Company” or “AGAE”), a global experiential entertainment company, today announced financial results for the second quarter ended June 30, 2023.\n\n\n“We are thrilled to announce our second quarter revenues of $3.3 million, which are up 182% year-over-year, and driven by the continued success of our original content sponsorship and our new arena and mobile truck sponsorship. Importantly, we continue to see growing demand for our products and services as we further streamline our expense base,” said Yinghua Chen, the Company’s Chief Executive Officer. “Moreover, as part of our strategic vision to be a leading and trusted entity in the gaming and entertainment industries, AGAE now consists of three fully owned subsidiaries: Allied Esports International, Allied Experiential Entertainment, and Allied Mobile Entertainment. This restructuring aims to optimize our resources and provide investors with greater clarity on our business outlook and direction.”\n\n\nSecond Quarter 2023 Financial Results\n\n\nRevenues: Total revenues of $3.3 million increased 182% compared to $1.2 million in the second quarter of 2022. The year-over-year increase was primarily attributable to the release of the second season of the Company’s original content series, ELEVATED, along with the execution of a more lucrative long-term arena sponsorship agreement.\n\n\nCosts and expenses: Total costs and expenses were $4.7 million, a decrease of 2.4% compared to the second quarter of 2022. The improvement was inclusive of additional expenses incurred during the quarter related to Season Two of ELEVATED which were not incurred in the second quarter of 2022. The additional expenses were more than offset by decreases in other expense categories, including live event production costs, which declined by 31.1%, general and administrative expenses, consisting principally of cash and stock-based compensation, which declined by 19.6%, and depreciation and amortization expense, which declined by 73.7%.\n\n\nNet loss for the second quarter of 2023 was $0.7 million compared to a net loss of $3.7 million in the prior year period. Net loss in the second quarter of 2023 includes approximately $715,000 of interest income earned on short-term investments.\n\n\nFurthermore, adjusted EBITDA loss was...