Allied Gaming and Entertainment, an esports and poker company, reduced its net loss in 2023 by over half after reducing spending on several fronts.
The revenue for the year ending 31 December 2023 increased by 15.6% to $7.4m ($5.9m/EUR6.9m). This combined with lower costs allowed Allied’s net loss to drop significantly.
The group has three divisions: Allied Esports International, Allied Mobile Entertainment and Allied Experiential Entertainment. Its core focus is on esports.
Allied is a global company that owns a number of properties and runs events. It also offers services in the esports industry. HyperX Esports Arena Las Vegas is its flagship, and it also runs the 18-wheel mobile gaming arcades Allied Esports Trucks.
CEO Yinghua praised Allied’s “substantial progress” in 2023. The acquisition of the majority stake in Beijing Lianzhong Zhihe Technology (a mobile games developer) was completed in August.
Chen stated that Allied is now in a good position to continue growing in the years 2024-2028.
Chen stated, “We have made significant progress in fiscal year 2020 and are entering fiscal year 2019 from a strong position.” “AEI, AME, and AEE all have a strong growth potential as we work to achieve our strategic goals this year.
We are very excited about the future and confident of our plans.
Allied Net Loss drops to $3.6m
Looking at 2023’s results in more detail, the main source of revenues remained to be the physical activities at $5m. The revenue was the same as last year.
Other operations in the company were responsible for revenue growth. The revenue from multiplatform content grew 42.9%, to $2.0m. Casual mobile gaming brought in $698.522, whereas this wasn’t part of Allied Business the year before.
Total costs and expenditures across the company were down 21.0% at $14.3m. The main expense for Allied, general and administrative costs fell by 29.6% to $7.6m.
The lower spending led to a smaller operating loss, of $6.6m compared with $11.8m by 2022. Other income helped reduce the overall loss.
Interest income was $3.0m, while expense income totaled $46,684. Allied ended up with a $3.6m net loss, compared to the $10.8m in losses in the prior year.
The adjusted EBITDA losses also improved, from $8.6m to $4.6m.
The end of 2023 will be a positive one
Allied’s Q4 was a success, and helped to boost the growth of its full-year.
The revenue in the Q4 increased by 75.0% to $2.1m. This was again driven by the Beijing Lianzhong Zhihe Technology purchase, which generated an additional $698.522 of casual mobile gaming revenues.
The total cost and expense was $4.0m, a marginally higher figure than the previous year. Revenue growth has reduced the operating loss from $2.7m down to $1.9m.
Interest income was $792.103 and other income $30.730. The bottom line net loss was $1.1 million, a significant improvement over the $1.7 million in 2022.
The adjusted EBITDA losses fell from $1.7m the year before to $1.2m.
