Q2’s impressive growth follows a significant restructuring effort Allied Gaming & Entertainment undertook last year, which aimed to realign its operations and strategic focus for improved financial performance. The company has managed to leverage its newfound financial stability to deliver sustainable financial performance and create a stable foundation for further growth in new and existing markets.
Net Loss Decreased Significantly
Allied’s Q2 revenue recorded groundbreaking growth, rising 182.3% year-on-year to $3.3 million. The company’s multiplatform content operations contributed most to the company’s bottom line, reporting quarterly revenues of $2.0 million. Land-based revenue marked a significantly lower 18.2% increase but remained healthy at $1.1 million.
A lack of foreign currency translation adjustments and a 2.1% decrease in operating costs contributed to a Q2 pre-tax loss of just $691,218, down from $3.8 million for the same period in 2022. Adjusted EBITDA grew accordingly, improving from a loss of $2.7 million in Q2 2022 to a $1.1 million loss.
Q2’s impressive results also contributed to a significantly bolstered first half. Revenue for the first six months reached $4.5 million for a 25% year-on-year increase. With operating costs down 22.0% compared to H1 2022, Allied sits at a net loss of $2.6 million– a significant improvement compared to last year’s $7.5 million loss.
New Initiatives Will Bring Additional Revenue
Q2 2023 marked the second full quarter since Allied Gaming & Entertainment completed its restructuring initiative. The process involved a comprehensive overhaul of the company’s operations, positions, and strategies. Allied aimed to optimize operational efficiency, streamline processes, and enhance the overall customer experience across the company’s offerings in the esports and poker sectors.
These encouraging results indicate a positive trajectory for Allied’s prospects and a hopeful return to profitability. The company founded two new subsidiaries, Allied Mobile Entertainment (AME) and Allied Experiential Entertainment (AEE). These will focus on developing the mobile games market and exploring experiential entertainment venue operations, creating new revenue streams.
We expect that AME and AEE will enable us to break into new markets, creating additional revenue streams and enhancing our financial performance within the next 12 months.
Allied Gaming & Entertainment president and CEO Yinghua Chen
Although Allied is yet to reach profitability, its recent efforts mark a significant milestone in its recovery efforts. As the company continues to leverage the momentum generated by its restructuring efforts, it is well-poised to capitalize on the continued growth and evolution of the gaming and entertainment industry and achieve sustainable success in a dynamic and ever-changing market landscape.