Allied Esports Entertainment Inc (NASDAQ:AESE) is moving lower in the pre-market session following news update.
As of 7:44, AESE is trading lower by 0.45% at $2.22. Key pivot points to keep on are
AESE Releases Earnings
Allied Esports Entertainment Announces First Quarter 2021 Financial Results
- Allied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company” or “AESE”), a global esports entertainment company, today announced financial results for the first quarter ended March 31, 2021, as well as an update on several key business initiatives. This release refers to “continuing” and “discontinued” operations due to the pending sale of the Company’s subsidiaries owning and operating its poker-related business, the World Poker Tour® (“World Poker Tour,” or “WPT®”), which is expected to close in the second or third quarter of 2021. Therefore, unless otherwise noted, results presented in this release relate to the continuing operations of the Company and Allied Esports, and excludes the World Poker Tour, which is classified as discontinued operations.
- Revenues: Total revenues of $0.5 million decreased 53% in the first quarter of 2021 compared to the first quarter of 2020. This was due to decreased In-person revenue as a result of the pandemic.
- Costs and expenses: Total costs and expenses for the first quarter of 2021 were $5.4 million, a decrease of 43% compared to the first quarter of 2020. Costs and expenses decreased primarily due to lower expenses in the In-person pillar, and lower general and administrative, selling and marketing and stock-based compensation expenses.
- Loss from continuing operations for the quarter was $5.0 million, compared to a loss of $9.1 million in the prior year period. The improvement was driven by lower costs and expenses for the current quarter.
- Adjusted EBITDA loss was $3.3 million for the 2021 first quarter, as compared to $3.5 million in the first quarter of 2020. A reconciliation of the GAAP-basis net loss to adjusted EBITDA is provided in the table at the end of this press release.
- As of March 31, 2021, the Company had a cash position of $18.5 million, including $5.0 million of restricted cash and $2.9 million of cash in connection with the WPT business that is included in current assets of discontinued operations, but is available to fund the Allied Esports business until the close of the WPT sale transaction.