Allied Esports Entertainment, operator of HyperX Arena Las Vegas at the Luxor, last week reported a net loss of $6.3 million, on a 108% revenue growth of $1.9 million for the fourth quarter of 2021. This compares to a much wider loss of $18.9 million in Q4 2020. For the full 2021, Allied reported a net loss of $15.8 million, with revenue up 54% to $5 million, compared with a net loss of $31.7 million and revenue of $3.2 million in 2020.
Most of the positive comparisons are related to the company’s sale of the World Poker Tour (WPT) on July 12, 2021, and also the increased foot traffic at the company’s HyperX Arena Las Vegas due to the increased number of events. Commenting on the latest results, the company’s Interim CEO Lyle Berman said: “As our Esports operations continue to recover from the effects of the COVID-19 pandemic, our process to explore strategic alternatives for the business is gaining traction and we are in active discussions with several interested parties. We ended the year with a cash position of nearly $98 million, including restricted cash, and we are continuing to identify opportunities to invest this cash to acquire or merge with an existing business, along with any cash from any sale of the Esports business.”
“Over the past several months, we have reviewed the merits of a number of potential target investment opportunities with our financial and legal advisors. Our due diligence and the continued sourcing of other opportunities remain ongoing. We continue to work with a sense of urgency in these efforts and we are very focused on finding the absolute best opportunity available to maximize value for our shareholders.”
Revenue growth was also driven by “encouraging results” from the company’s ‘Multiplatform Content’ pillar of the business. Adjusted EBITDA loss was $2.1 million for the fourth quarter of 2021 compared to a loss of $7.8 million in the fourth quarter of 2020.
Net income was $62.9 million in full 2021 compared to a net loss of $45.1 million in 2020. The improvement was primarily driven by the gain on the sale of the WPT during the third quarter of 2021. Adjusted EBITDA loss was $11.1 million in 2021 compared to a loss of $21.7 million in 2020.
During the fourth quarter of 2021, Allied Esports produced 110 events, including 29 proprietary events and 81 third-party online and in-person productions. The company saw over 17,000 total players compete in both online and in-arena events, a company record. In addition, third party events were up 14% quarter over quarter, driven by a 24% increase in third party events and productions booked at the HyperX Arena Las Vegas.
Also in the period, the company joined the NFT market with the sale of its first collection on the Ethereum Blockchain, EPICBEAST, which leverage the recent addition of digital ownership empowered by the blockchain and its impact on developing digital communities. The Company expects to deliver utility and value to holders via access to Allied Esports-backed events and future metaverse experiences, monthly live streams, customizable merchandise and collectibles.
Original article: https://www.yogonet.com/international/news/2022/06/01/62850-hyperx-arena-las-vegas-39-owner-doubles-revenue-and-cuts-loss-in-q4–targets-ma-after-wpt-sale
