Allied Esports Entertainment has reported its financial results for Q3 2019, showing a significant growth in revenue.
Growth across all strategic pillars
The company, which was formed when Black Ridge Acquisition acquired Allied Esports International and WPT Enterprises (read more), saw total net revenues in the third quarter of 2019 grow 10.2% year-on-year, from $5.5m to $6m.
Growth was seen across all strategic pillars; in-person, multiplatform content and interactive. In-person revenue was up 17% to around $2.6m, driven by the Allied Esports business, which includes the flagship HyperX Esports Arena Las Vegas – a venue which saw no fewer than 85 events during the period.
Multiplatform and interactive revenues amounted to $3.4m and was driven by the World Poker Tour (WPT) business.
Despite the revenue growth, the company reported a net loss of $4.3m – though that was an improvement on the $6.7 loss from the same period in 2018.
Reflecting on the quarter Allied Esports Entertainment CEO, Frank Ng, said:
“In our first quarter as a public esports company, Allied Esports delivered solid results driven by continued execution of our operating model along with early benefits from our strategic alliances with Simon and TV Azteca.
“At the topline, total revenues expanded more than 10% compared to the third quarter of last year, with each of our three strategic pillars—In-person, Multiplatform Content, and Interactive—generating year-over-year growth.
“I am also pleased with the progress we are making in our partnership with our strategic investors, Simon and TV Azteca, as evidenced by the launch of the Simon Cup esports tournament as well as the premiere of WPT television programming and social gaming in Mexico across various distribution channels via TV Azteca.”
Trucks, Mexico and Down Under
The company also operates the HyperX Esports trucks in North America and Europe, with sponsors like Lenovo, Intel, Warsteiner and Acer in addition to HyperX as name sponsor (read more). The trucks attended eight events, including Gamescom and Wacken Open Air, during the period.
In Mexico, Allied Esports and TV Azteca produced two events outside of Mexico City, which were live streamed across social and digital platforms.
While down under, Allied Esports Property Network’s newest member, Fortress Esports, is planning to open its first location next year, at the Emporium shopping mall in Melbourne, Australia. The 2,700 square metre facility will feature a 200-seat arena, 120 top range LAN stations, 2 bars and restaurants, along with casual console gaming suites.
AYO.NEWS says:
Things seem to be looking good for Allied Esports Entertainment, with revenue rising across the board and losses being slashed. With esports still gaining traction around the world, it seems the company’s international expansion is putting it in a strong position to capitalise on opportunities as they arise.
AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.
