Allied Esports loses $3.8M in first quarter of 2022

Esports entertainment company Allied Esports has shared its financial performance for the first quarter of 2022.

Brass tacks: Allied generated "record revenue and adjusted EBITDA" during the quarter.

• Total revenues of $2.4M, up 381% from the first quarter of 2021. This was driven by an increase in custom at its HyperX Arena Las Vegas, sponsorship revenue, and NFT sales.
• Total costs and expenses of $6.2M, an increase of 15% year-on-year allocated to in-person expenses due to the return of in-person events post-lockdown.
• Net loss of $3.8M and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $2.5M.

Recommended reading → How esports organizations performed financially in 2021

The company: It received a warning letter from Nasdaq in May 2022 regarding non-compliance.

• Allied Esports hosted 92 events, 24 of which were third-party productions, in Europe and North America during the period.
• It revealed its financial results for 2021 in May 2022, including a net income of $62.9M thanks to the $77.9M sale of its World Poker Tour property. The year prior, it lost $45.1M.
• The company tapped The Benchmark Company to serve as its financial advisor in 2021 as it explored potential investments to strengthen its operations. As of this financial update, there are no significant developments on this front.