Esports entertainment company Allied Esports Entertainment reported its financial earnings for the second quarter of 2020. The company generated net revenues of $4.6M USD for the period ended June 30, down 37.6% from $7.3M in the same period of last year. Company representatives primarily attribute the decrease to a loss of in-person revenues due to COVID-19 policies, which was partially offset by revenue growth in multiplatform content and interactive services.
Allied Esports Entertainment’s CEO Frank Ng explained in a release that, “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.“
The company’s in-person revenues for the quarter dropped to $700K, a decline of roughly 78% compared to $3.2M in Q2 2019. In accordance with Nevada regulations, Allied Esports Entertainment’s HyperX Esports Arena reopened to customers on June 25.
The company’s multiplatform content and interactive services revenues increased by 59% and 34%, respectively, to a combined amount of $3.9M. In the second quarter of 2020, Allied Esports Entertainment produced 78 events, with 60 proprietary online events and 18 third-party productions, across its North American and European business units.
In total, the company reported a net loss of $10.9M for Q2 2020 compared to a $2.8M net loss in the same period of 2019. Allied Esports Entertainment’s total costs and expenses slightly decreased by 7% from $10.1M in Q2 2019 to $9.4M in the second quarter of 2020.
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