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Allied Esports Entertainment, a global esports entertainment company, has reported a net loss of $10.9m for the second quarter of 2020, after its revenue was hit by the novel coronavirus (Covid-19) shutdown of certain esports events.
The second-quarter struggles meant that revenue for the six months to 30 June totalled $10.6m, down 23.2% on $13.8m last year.
Total costs and expenses were up 16.3% to $23.5m, leaving it with an operating loss of $12.9, almost double the $6.6m loss it posted in 2019. After other costs, Allied Esports posted a comprehensive loss of $19.7m. In Q2, revenue fell 37.0% year-on-year to $4.6m.
Allied Esports said its in-person operations – live events – were hardest hit by Covid-19 in Q2. The in-person revenue dropped 78.3% from $3.2m to $699,327.
“Throughout the second quarter, we continued to operate in an extremely challenging environment arising from the ongoing Covid-19 pandemic,” chief executive David Ng said.
“The shelter-in-place orders that extended for the majority of the second quarter resulted in the temporary shut-down of the in-person pillar of our business activities, which negatively affected our second quarter financial performance.
“Given this reality, we quickly shifted our strategic focus to the multiplatform content and interactive services pillars in order to mitigate the impact of the pandemic on our business and continue to serve our loyal communities.”
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Allied Esports Entertainment Reports Net Loss of .9M During Q2 2020
