Coronavirus zaps Allied Esports live events; losses widen

Losses widened for Allied Esports Entertainment, the company that operates the HyperX Esports Arena at Luxor, after coronavirus-related closures at the end of the first quarter affected company revenue.

Allied CEO Frank Ng said while online video gaming continues to grow during the pandemic, live events suffered as a result of closures worldwide.

“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 shutdown of the in-person pillar of our business strategy,” Ng said.

Revenue was down 3 percent from a year ago to $6 million for the quarter that ended March 31. Net losses grew to $8.8 million, 37 cents a share, from $3.9 million, 33 cents a share, a year earlier.

Ng said the HyperX Esports Arena hosted 67 events in the first quarter compared with 77 last year. He also said negotiations to place esports facilities in shopping malls operated by the Simon Property Group have been delayed until after the pandemic subsides.

The company has begun reducing expenses with payroll being reduced by $1 million over the next six months. Ng said he took an 80 percent pay cut for the next six months as well.

The company also announced Monday that Allied is producing the National Football League Alumni and ESTV’s Esports Celebrity Challenge, a charity event sponsored for the NFL Alumni COVID-19 Relief Fund. Donations made during the broadcast will help provide computers and technology for underserved children for distance learning, the organization said.

Former NFL running back Ahman Green, Los Angeles Clippers small forward Paul George, Washington Mystics small forward Aerial Powers and Kansas City Royals outfielder Brett Phillips are playing in a Call of Duty: Warzone tournament that began Monday.

Allied shares closed down 4.2 percent, 8 cents, to $1.82 a share on above-average volume Monday. After hours, shares fell another 6.6 percent, 12 cents, to $1.70 a share.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.