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Revenues from its 30,000 square foot HyperX esports arena in Nevada came to US$2.4 million over the quarter.
Allied Esports (NASDAQ:AESE), a new publicly listed player in the esports arena, released its Q3 2019 financial results on Tuesday (November 12), highlighting a steady uptick in revenues.
The company began trading in early August following a combination between business affiliates Black Ridge Acquisition, WPT Enterprises and Allied Esports International. Allied Esports has hosted over 85 live esports events to date, including the Twitch Prime Crown Cup.
Although its shares have slid nearly 50 percent since launching, the company reported US$6 million in revenues over the last quarter, as in-person revenues helped to accelerate growth. The company’s flagship venue, located in Las Vegas, helped drive in-person revenue by 17 percent compared to the same time in 2018.
The HyperX esports arena is located in the Luxor Hotel in Las Vegas. A 30,000 square foot venue, it hosts a 50 foot LED wall and VIP lounges. The venue opened in March of last year.
Along with this, core partnerships with Simon Equity Development, a subsidiary of Simon Property Group (NYSE:SPG), and media conglomerate TV Azteca, have helped channel the company’s growth.
“In our first quarter as a public esports company, Allied Esports delivered solid results driven by continued execution of our operating model along with early benefits from our strategic alliances with Simon and TV Azteca,” Frank Ng, CEO of Allied Esports, said in a press release.
Among Allied Esports’ other business pillars is sponsorship revenue. Over the quarter, it generated US$200,000 in sponsorships. Previously, the company has partnered with Intel (NASDAQ:INTC), Acer and Lenovo Group (HKEX:0992) for sponsorship deals.
“Looking ahead to the fourth quarter, momentum continues to build and we expect a strong finish to the year,” said Ng. Later this month, HyperX esports mobile gaming arenas are slated to make four strategic appearances across Europe and North America. The mobile gaming arena is essentially a truck that then transforms into an esports stage.
Earlier in November, Allied Esports’ mobile gaming arena made an appearance at Post Malone’s Posty Fest in Texas, where it hosted a Call of Duty tournament.
Since the release of its financial results on Tuesday, shares of Allied Esports had declined 1.3 percent to US$4.28 as of market close on Thursday (November 14).
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.