Allied Esports Entertainment reported a net loss of $8.8 million for the first quarter of 2020, which is nearly $5 million more than the same period last year.
Per the company, the temporary closure of its flagship esports venue — HyperX Esports Arena Las Vegas at the Luxor Hotel & Casino — in March and the cancellation of in-person World Poker Tour events due the coronavirus pandemic caused a roughly 16 percent decline for in-person revenues.
“In the latter part of the quarter, it became clear that shelter-in-place orders would be issued in most cities in the United States and in other markets in which we operate around the globe, resulting in the temporary shut-down of the In-person pillar of our business strategy,” Allied Esports Entertainment CEO Frank Ng said, per the Las Vegas Review-Journal.
“... While the COVID-19 pandemic impacted our results in the first quarter, I am reassured by the tremendous popularity of esports and poker, including WPT’s meaningful subscriber growth in March, as the nation and world remains at home. I firmly believe that our unique position will not only carry us through the difficulty and uncertainty driven by the pandemic, but will also provide an opportunity to expand our customer base once the crisis ends and life returns to normal. We look forward to continuing to serve our customers and the gaming community and emerging from this challenge as a stronger company.”
Ng told Las Vegas Review-Journal that the HyperX Esports Arena hosted 67 events in the first quarter of 2020, compared with 77 last year.
Allied Esports Entertainment reported a net loss of $3.9 million in the first quarter of 2019.
—Field Level Media