Esports Entertainment Company Allied Esports has announced its fourth quarter and 2021 annual financial results.
Allied Esports has reported revenues of around $5m (~£3.9m) in 2021, up 54 percent from $3.2m (~£2.5m) in 2020. In addition, net income rose to $62.9m (~£50m), a substantial change from 2020’s net loss of $45.1m (~£35.8m).
HyperX Arena in Las Vegas. Image credit: Business Wire
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One of the key factors contributing to Allied Esports’ results was The World Poker Tour’s sales of $105m (~£83.2m) in July 2021. On its balance sheet, Allied Esports saw its net assets increase by 70 percent. Much of this growth was the result of having cash on hand.
Reportedly, Allied Esports will use its $98.2m (~£76.3m) war chest to fuel future growth.
Allied Esports Interim CEO, Lyle Berman, Commented: “Our process to explore strategic options for the business is gaining traction and we are in active discussions with a number of interested parties… Continuing to identify opportunities.”
Additionally, Allied Esports reduced its costs by 41 percent compared to 2020. This shortfall was mainly due to accounting practices and COVID. In 2020, the company recorded loss of investment, property and equipment. This means that Allied Esports downgraded the value of its assets, particularly its investments in ESA (Esports Arena) and its assets/equipment, which made sense due to its limited ability to operate during 2020.
As the owner of several esports venues around the world, Allied Esports was heavily affected by the COVID-19 pandemic and its associated lockdowns. As such, total annual revenue grew 54 percent year-on-year from 2020 to 2021. The majority of this profit came from increased personal presence at the company’s HyperX Arena Las Vegas.
According to the report, in the fourth quarter of 2021, Allied hosted 110 events and nearly three-quarters of these were organized for third parties. There was a 24 percent increase in the number of third-party events at HyperX Arena Las Vegas.
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These third-party programs often work in conjunction with AE Studios, the new content and production services arm of Allied Esports. The company highlighted two shows produced in the fourth quarter, one for Twitch and one for Progressive Insurance.
Allied Esports also has a fleet of gaming trucks that can be deployed at events. Allied Esports trucks were used at sporting events in the fourth quarter of 2021, including NASCAR events across the United States and the Cotton Bowl in Arlington, Texas. Additionally, the trucks also visited the Pozna Game Arena in Poland.
Esports Insider Says: Allied Esports is clearly in a better position than in 2020 after The World Poker Tour’s one-off sale. Spending the money it receives will be critical to future success.
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