Allied Esports Entertainment Inc. recently unveiled the company’s financial results for the first quarter of the 2022 financial year which concluded on March 31st. Despite revenues growing immensely, the company’s net losses and total cost also increased from last year to this year.
Total revenues grew by 381% from Q1 2021 to Q1 2022, reaching a maximum value of $2.4 million. Despite this growth, total costs and net losses rose for the company from the previous period by 15% to reach $6.2 million. Meanwhile, net losses also increased to $3.8 million from $3.3 million the year prior.
“I am very pleased with the operational performance of our Esports business, which generated record revenue and adjusted EBITDA during the quarter and has continued to gain momentum as we emerge from the pandemic and move to a more normalized environment. This solid operational recovery is helping drive strong interest from outside parties as we move ahead with our previously stated objective to pursue strategic alternatives for the Esports operations, including a potential sale of the business,” said interim CEO Lyle Berman. “Concurrently, we continue to make progress in our ongoing efforts to invest the cash on our balance sheet to acquire or merge with an existing business. While we are limited in what we can currently disclose about the process, I look forward to providing the market with an update on our progress at the appropriate time.”