eSports
Allied Esports Entertainment Announces Preliminary Unaudited Fourth Quarter and Full Year 2020 Financial Results
Allied Esports Entertainment, Inc., a global esports entertainment company, announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2020, 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 operating our poker-related business and assets comprising the World Poker Tour® (“World Poker Tour,” or “WPT®”), which is currently in active negotiations to be sold in a transaction that is expected to close in the second 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.
The Company filed a Form 12b-25 to extend the due date for filing its Annual Report on Form 10-K for the year ended December 31, 2020 until April 15, 2021. Reflected herein are selected preliminary unaudited financial results. These financial results are subject to adjustments based upon, among other things, the completion of the audit of the Company’s consolidated financial statements as of December 31, 2020 and for the year then ended.
Commenting on the preliminary fourth quarter and full year 2020 results, the Company’s CEO, Frank Ng, said, “Despite the unprecedented operating challenges and macro-economic uncertainty encountered throughout most of 2020 resulting from the COVID-19 pandemic, Allied Esports finished the year with a solid performance in the fourth quarter. The In-person pillar of our business model remains the primary near-term growth driver of our Esports business, and this activity was significantly curtailed globally during the pandemic due to operational restrictions, including limitations on social gatherings and other health and safety protocols. However, we made good progress throughout the year conceptualizing and building-out the Multiplatform Content pillar of our business. I believe the work and progress we made will serve us well in the quarters and years ahead.”
Mr. Ng continued, “Total revenues for the fourth quarter of $0.9 million declined from $2.0 million in the fourth quarter last year. During the fourth quarter, Esports generated its first meaningful revenue from Multiplatform Content, which totaled $0.2 million and comprised nearly one-quarter of our fourth quarter Esports revenue. At the bottom line, our adjusted EBITDA loss of $3.5 million for the fourth quarter improved over 3% from an adjusted EBITDA loss of $3.7 million a year ago. I am also pleased with our ability to reduce operating expenses to better align our cost structure with the lower revenues generated during the year. Additionally, we made tremendous progress in 2020 improving our capital structure, as evidenced by a 71% reduction in total bridge and convertible debt during the year and significantly enhanced financial flexibility.”
Mr. Ng concluded, “As we look ahead in 2021, our expectation is that global distribution of COVID-19 vaccines will bring the return of a normalized world—and with it—the recovery of in-person events. We are optimistic that we will soon be operating in an environment where the Company’s foundational strides made on the Multiplatform Content pillar of our business in 2020 will come together alongside the resurgence of live events and the return of maximum capacity at our various Esports venues.”
Fourth Quarter 2020 Financial Results
Revenues: Total revenues of $0.9 million decreased 52% in the fourth quarter of 2020 versus the fourth quarter one year prior. This was due to decreased In-person revenue, partially offset by revenue growth in Multiplatform Content.
Costs and expenses: Total costs and expenses for the fourth quarter of 2020 were $16.6 million, an increase of 135% compared to the fourth quarter of 2019. Costs and expenses increased due to increases in impairment of investments and property and equipment expenses that were not incurred in the prior year period. The increase was partially offset by lower expenses in In-person, selling and marketing, and online operating areas of the business.
Loss from continuing operations for the quarter was $19.7 million, compared to a loss of $5.8 million in the prior year period. Loss from continuing operations for the fourth quarter of 2020 included a non-cash extinguishment loss on acceleration of debt redemption of $1.7 million that was not incurred in the prior year period as well as a $1.8 million increase in interest expense compared to the fourth quarter of 2019.
Adjusted EBITDA loss was $3.5 million for the 2020 fourth quarter, as compared to $3.7 million in the fourth quarter of 2019. A reconciliation of the GAAP-basis net loss to adjusted EBITDA is provided in the table at the end of this press release.
Full Year 2020 Financial Results
Revenues: Total revenues of $3.2 million decreased 57% in the full year of 2020 versus 2019. This was primarily due to decreased In-person revenue, partially offset by revenue growth in Multiplatform Content.
Costs and expenses: Total costs and expenses for the full year of 2020 were $35.7 million, an increase of 63% compared to 2019. Costs and expenses rose primarily due to increases in impairment of investments and property and equipment, stock-based compensation expense and G&A expenses. The increase was partially offset by a decrease in In-person, Multiplatform content, and selling and marketing expenses.
Loss from continuing operations for the 2020 year was $46.5 million, compared to a loss of $15.5 million in 2019. Loss from continuing operations for the full year of 2020 included a non-cash conversion inducement expense of $5.2 million and a non-cash extinguishment loss on acceleration of debt redemption of $3.4 million that were not incurred in the prior year along with a $4.5 million increase in interest expense compared to 2019.
Adjusted EBITDA loss was $11.6 million for the 2020 year, as compared to $9.6 million in 2019. A reconciliation of the GAAP-basis net loss to adjusted EBITDA is provided in the table at the end of this press release.
Balance Sheet
As of December 31, 2020, the Company had a cash position of $9.1 million, including $5.0 million of restricted cash and an additional $3.6 million of cash held by the WPT business that is included in current assets of discontinued operations, but which continues to fund the Allied Esports business until the close of a WPT sale transaction. The Company had a cash position of $12.1 million at December 31, 2019, which included $3.7 million of restricted cash and $5.2 million held at WPT. The total gross principal amount of bridge and convertible debt as of December 31, 2020 was $4.0 million, as compared to $14.0 million in the prior year period. As of December 31, 2020, the Company’s common shares outstanding totaled approximately 38.5 million shares.
Operational Update
Allied Esports
In the fourth quarter of 2020, Allied Esports produced 48 events, with 41 proprietary events and 7 third-party productions, across its North American and European business units.
During the quarter, Allied Esports continued to see strong demand in both its in-arena and online proprietary offerings. Over 1,000 players from North America and Latin America competed across Fortnite, PLAYERUNKNOWN’S BATTLEGROUNDS (PUBG) Mobile and Call of Duty Mobile in Trovo Holiday Royale, a tournament which was co-organized by Trovo and Allied Esports. The event was live streamed exclusively on Trovo.Live.
Allied Esports continued to leverage its infrastructure for production services for several clients, including FaceIT, HyperX and Digi 1, among others. Services included both online productions as well as an in-person COVID-19-safe bubble environment at HyperX Esports Arena for participating teams.
Allied Esports also hosted one event on its HyperX Exports Truck in North America with partner Findlay Volkswagen in the fourth quarter.
In November, Allied Esports launched a 24-hour content strategy on Twitch, which has generated strong interest since launch. Hundreds of hours of Allied Esports’ tournament productions and exclusive original content are programmed around the clock across Allied Esports’ Twitch channels. The new 24-hour programming schedule generated nearly 3 million live views in the fourth quarter which was up 6,202% Y-on-Y. Growth in viewership also led to increased follower growth on Twitch by 7% in the fourth quarter.
Subsequent to quarter end, Allied Esports announced the renewal of their exclusive naming rights agreement for Allied Esports’ global flagship property, HyperX Esports Arena Las Vegas, located at Luxor Hotel and Casino on the Las Vegas Strip. Per the multiyear deal, HyperX will continue to receive prominent branding and signage inside and outside of the venue, as well as across all arena promotions, content and social media platforms. Additionally, both companies will continue to partner on a variety of co-branded experiences and events at the arena focused on growing their gaming and esports communities.
Corporate Developments
On March 19, 2021, the Company announced an amended definitive agreement to sell its subsidiaries operating our poker-related business and assets comprising the World Poker Tour, to Element Partners, LLC subject to closing conditions, with a total transaction value of approximately $90.5 million.
In response to an unsolicited proposal of Bally’s Corporation to acquire the World Poker Tour for $105 million, on March 29, 2021, Element and the Company further amended their definitive agreement to increase the purchase price to $105 million. The Company’s Board of Directors will evaluate any additional proposals in due course in compliance with the terms of the Element definitive agreement.
Fourth Quarter and Full Year 2020 Conference Call
The Company will host a conference call today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its preliminary fourth quarter and full year 2020 financial results. Participants may join the conference call by dialing 1-877-407-0792 (United States) or 1-201-689-8263 (International).
A live webcast of the conference call will also be available on the Company’s Investor Relations site at http://ir.alliedesportsent.com. Additionally, financial information presented on the call will be available on Allied Esports’ Investor Relations site. For those unable to participate in the conference call, a telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 p.m. ET on Wednesday, April 14, 2021, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13717880.
BETBY, a leading sportsbook supplier, has announced a new partnership with prominent LATAM-focused esports provider Mobadoo, in a move that will see its Betby.Games portfolio fully integrated into Mobadoo’s product lineup.
This collaboration enables Mobadoo — which has an established presence and deep market understanding across Latin America — to incorporate BETBY’s proprietary and award-winning esports offering, delivering dynamic and fast-paced betting content to its growing user base. Among Betby.Games’ titles are eSoccer, eBasketball, eFighting, eCricket, eShooter, eHorse Racing, eTennis, and the Brazil-relevant eVaquejada.
As one of the most comprehensive and high-frequency esports betting solutions in the industry, Betby.Games offers access to more than 70 tournaments, over 350 betting markets, and more than 300,000 live matches each month. This collaboration will not only enhance Mobadoo’s offering but also reinforce BETBY’s position as a leading esports supplier in the LATAM region, a key pillar in the supplier’s global expansion strategy.
“Mobadoo has an excellent reputation and strong regional expertise, making them an ideal partner for us. Their commitment to innovation in esports and the rapid growth of this vertical in the region made our partnership only a matter of time,” commented Kirill Nekrasov, BETBY’s Head of Sportsbook Product. “This agreement not only expands the reach of our unique Betby.Games content, but also aligns perfectly with our global strategy of delivering flexible, high-performance esports solutions to next-generation operators. Together, we’re set to further strengthen our leading position in the LATAM region.”
José Aníbal Aguirre, Chief Marketing Officer at Mobadoo, added: “We’re thrilled to integrate Betby.Games into our offering. The depth and quality of their esports content is unmatched, and this partnership gives us a powerful new edge in catering to LATAM’s passionate esports fanbase. With BETBY’s support, we’re confident we can elevate the player experience and unlock new growth opportunities across the region.”
Red Bull Home Ground, the pro VALORANT invitational, is set to make its return with a blockbuster fifth edition, bringing together the world’s top teams to New York City, for one of the most exciting showcases in the esports calendar. From November 13–16, the iconic Hammerstein Ballroom at the Manhattan Center will host four electrifying days of competition, as global giants and rising stars fight to claim the title of 2025 off-season champions.
This year, Red Bull Home Ground will feature a stacked lineup of elite contenders. Returning champions T1 are ready to defend their crown, joined by two-time VCT Global Event winners Fnatic and fan-favourites G2 Esports, Sentinels, and ZETA DIVISION. Joining these giants will be the two top teams who earn their place through the Play-In Stage and an additional team to be revealed – a gauntlet of global qualifiers open to all in India, USA, Spain, Turkey, Chile, Egypt, Belgium, Germany, South Africa, Netherlands, Japan, and EMEA qualifiers, giving players around the world the chance to earn a spot to go against the best-of-the-best on the main stage. The final main stage slot will be revealed at a later date.
For the first time, the Red Bull Home Ground World Final will be hosted in the United States, taking place at the legendary Hammerstein Ballroom in Manhattan. Known for its grand Beaux-Arts architecture and storied history hosting icons like The Grateful Dead and Guns N’ Roses, the venue offers a perfect blend of classic New York legacy and modern spectacle for this high-stakes tournament. The action kicks off on November 13-14, with both days dedicated exclusively to the Play-in stage and the opening stages of the competition. For fans eager to experience the action live, tickets for the public main stage event on November 15-16 are available for purchase via Ticketmaster.
At last year’s Red Bull Home Ground in Berlin, fans were treated to an unforgettable grand final as T1 stormed to victory over Cloud9, clinching the championship title with a dominant 3-1 series. With every edition, Red Bull Home Ground has elevated the VALORANT off-season calendar, known for its fast-paced format, jaw-dropping plays, and international flair. Red Bull Home Ground continues to be a staple tournament for pro teams looking to compete against the best competition and for fans ready to witness thrilling match-ups.
Today, leading esports club Team Vitality has been crowned champions of the BLAST.tv Austin Major 2025, held at the iconic Moody Center in Austin, Texas. The Most Valuable Player (MVP), Mathieu ‘ZywOo’ Herbaut, led the charge as the Bees stormed to yet another title, delivering several standout performances throughout the tournament, particularly in the Grand Final against The MongolZ.
In just a few months, Team Vitality has become one of the most dominant rosters in the history of the game, laying the groundwork for a golden era for both the organisation and the wider French esports scene. Every tournament becomes a fresh display of strength, and every victory writes a new chapter in the CS2 history books.
UNDOUBTEDLY THE BEST
The powerhouse lineup of Dan ‘apEX’ Madesclaire, Mathieu ‘ZywOo’ Herbaut, Shahar ‘flameZ’ Shushan, William ‘mezii’ Merriman, and Robin ‘ropz’ Kool delivered another masterclass in CS2, defeating several top-tier teams, including NAVI and MOUZ.
Team Vitality’s incredible 30-game unbeaten run was ended by Brazilian side Legacy in Round 1; however, the Bees’ hopes were not diminished, as the team bounced back to claim a 13-6 victory over Nemiga in Round 2. This result was followed up by a dominant 13-2 display against 3DMAX in Round 3. The icing on the cake that sealed their spot in the playoffs was a convincing 2-0 win over Virtus.pro.
The Quarterfinals saw Team Vitality face off against NAVI. Despite both maps being closely contested, Team Vitality’s composure saw them through to a 2-0 victory, which was capped off by a clutch final-round performance from mezii to secure their place in the Semifinals. There, they faced against MOUZ in a classic rematch of the IEM Dallas 2025 Grand Final. Map 1 (Mirage) saw Team Vitality take a strong 13-8 win on MOUZ’s own map pick. After a tricky game on Inferno, where MOUZ struck back, the series was tied at 1-1. However, on the decider map, Train, the Bees crushed MOUZ, closing out the series with a 2-1 win and sailing to the Grand Final.
The Grand Final against The MongolZ was just as action-packed as the Semifinals. After a shaky start on Mirage, where they fell 5-13, the Bees struck back and secured a dominant 13-4 victory on Dust II. With everything on the line, the squad headed into Inferno – a classic Major finals map – to decide who would take the Austin Major crown. Despite Inferno being Team Vitality’s kryptonite throughout this Major, they pulled off a stunning 13-6 victory, dominating the CT side in the first half and carrying that momentum through to close the series out and secure the title.
This was Team Vitality’s second appearance in a Major final, following the historic victory in Paris in 2023. By winning in Austin, the Bees join an elite group of clubs as the fourth team in history to have won at least two Majors, alongside Astralis, Fnatic, and NAVI.
“Two years after our first Major win in Paris, we’re incredibly proud to experience this immense joy once again with this golden team. This victory crowns a historic start to the year, during which we’ve already claimed some of the biggest titles, including the ESL Grand Slam. Winning this Major was a key objective, a title that firmly places Team Vitality among the greatest clubs in Counter-Strike history. This team is the best in the world, without question. We are living in the Vitality era, and every other team is living in it too,” said Fabien “Neo” Devide, President and co-founder of Team Vitality.
“This latest title is a testament to our ability to build a long-term project rooted in excellence, one that blends talent and execution. Winning a second Major in just two years is not only a milestone in esports history, but also a powerful signal to the entire industry that French esports has reached the next level. This success is the result of collective strength, from our players and staff, to the unwavering support of our partners who share in this ambition. Together, we’ve achieved an unprecedented milestone,” said Nicolas Maurer, CEO and co-founder of Team Vitality.
WELCOME TO THE VITALITY ERA OF COUNTER–STRIKE
With this win, Team Vitality has claimed its seventh consecutive title of the year, extending a historic run and asserting its dominance at a prestigious event (the first Major to host 32 teams). Amid fierce competition and high-stakes matches, this trophy marks a defining chapter in Team Vitality’s golden history.
Dan ‘apEX’ Madesclaire and Mathieu ‘ZywOo’ Herbaut, who have been part of the Counter-Strike division since its inception in 2018, have now secured their second Major title in Team Vitality colours following their triumph in Paris in 2023, a feat that cements their status as true icons of global esports.
ZywOo also becomes the third player in history to win two Major MVP titles, and at just 24 years old, earns his 27th career MVP title. Meanwhile, apEX wins his third Major as an In-Game Leader, once again displaying his leadership skills and his key role in the club’s successes.
Robin ‘ropz’ Kool, whose arrival earlier this year marked a turning point in the team’s journey, has now claimed the second Major title of his career. His exceptional impact has been instrumental in elevating the team to new heights. For William ‘mezii’ Merriman and Shahar ‘flameZ’ Shushan, this marks their first-ever Major win, the pinnacle of competitive success in Counter-Strike, and a fitting reward for their steadfast dedication and standout performances in the tournament’s most intense moments.
THE VITALITY UNIVERSITY JERSEY 2025 COLLECTOR’S SHIRT – NOW ON SALE
To celebrate this victory, Team Vitality has unveiled a collector’s edition of its Vitality University Jersey 2025. This special edition features a second star above the bee logo, in recognition of the club’s two Major Championship wins (Paris and Austin), as well as a unique graphic on the back of the jersey. With its iconic bee-yellow colour and oversized design, this jersey is inspired by the timelessness of United States university fashion.
The Vitality University Jersey 2025 – Austin Major Champions is available now on the official store at the price of €89.99.
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