AESE - Earnings call transcript Q2 2020 | Allied Gaming & Entertainment Inc.

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Operator

Greetings and welcome to the Allied Esports Entertainment Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lasse Glassen of Managing Director with Addo Investor Relations. you. Thank

begin. may You

Lasse Glassen

Good quarter welcome results operator. Entertainment’s Allied XXXX second conference afternoon you, to and Esports Thank call.

Tony and Speaking Allied on Pliska; question-and-answer Esports Financial and Ng; leading who WPT-CEO, for the Operations, Esports is Company’s Officer, Chief the Entertainment’s Chief Jud session. and the Executive Officer, Adam call longtime Hung; the today are is available President Hannigan, Frank also

management, forward-looking contain please responses Before statements. remember discussed risk goal factors our statements. targeting, words public I over these results identify turn may, Securities and similar may the expressions should, the materially and to in of filings, prepared are Commission. plan, a including filed could, documents as to such could Actual and intended variety to of due questions intend, believe, forward-looking Exchange the call Words statements, to remarks anticipate, expect estimate, variations by Company’s factors that from the with forward-looking such and will, and seek, differ judgment, those implied

update Company whether believes events no the new or expectations such based are will statements that it reflected attained. future no reasonable expectations as assumptions, be a The Although result forward-looking upon can to its statements, in obligation give the any information, Company forward-looking assurance undertakes of otherwise.

to that, of Ng. and Entertainment’s to financial In useful measures to it’s addition, explanation afternoon CEO, certain over on Frank my Company website, financial pleasure The Allied available Company’s measures. this non-GAAP are the appropriate call release, measure of such investors. why presented earnings was the represents believes the turn information Esports presents the this is financial and With non-GAAP Frank? the call now GAAP which issued in to reconciliations Company’s an

Frank Ng

everyone us you joining afternoon. Thank for thank this and you, Lasse,

the which entire across uncertain temporary shelter-in-place the second negatively quarter, most continue all around nearly strategy, our arising This that the began operate markets ongoing and in-person of quarter. operating of The mid-March pandemic. our During in second extended in orders for performance. United pillar business well States an challenging of as affected the second our resulted COVID-XX essentially to environments as of financial the quarter the extremely in we from the globe shutdown

team's Given pandemic the pillars strengthening for strategic to while of and this continue with quickly believe for future. we shift reality, of employee's businesses. steadfast Esports the manage and to focus rapidly Overall, impact poker multi-platform as loyal our shifted the this to and the business dedication pleased pivot pandemic. through and as and mitigate our our esports I'm our was content ability the to interactive our We both serve successful well commitment, strategic to communities the Allied

our production all we first of March Esports moved services Looking beginning XXth, tournament at and online. operations U.S.

that As the the believe XX% This the forms competitive produce and competitive content entertainment reporting filled one left played loss global during we with surge has few both of to to sports in and tremendous of traditional pandemic, active Nielsen Esports gameplay and sports. of industry unprecedented of the suspension consumers viewership, games led video with and operate the recently, acceptance accelerate turned that by the void continues this and competitive the esports esports. heights platforms which onset engaged traditional during for media and of notably to the interest amount awareness of channels have betting pandemic the mainstream brands pandemic, content, in lockdown. sports since the platforms during of fill the to and esports content game Most of broadcasters time video traditional audiences a had this level

esports platform in and at peak was the Twitter the views and weight ESPN Team. shared picked on all Riot clip garnered on most hyperworks Esports The and up Mario Kart of Mario recently this, of arena, Allied that had by example As one nearly esports night's clip tournament by an Saturday clip time is fourth Twitch Kart currently day. on watched million X.X a

longer the trajectory industry business. esports the we accelerate pandemic growth the that's our and we the of term, Over believe

globe World With in-person, the Poker Tour cancellations events of around the to due the pandemic.

my online Esports WPT, moved events also shift results. include for in online that from leverage and we success highlights online continued X.X on our the a the which let's will including With ClubWPT We to million period. new quarter remarks. our I significant X.X and activities subscription platform, quarter business from the gears our platform ClubWPT. the the in later increase expect on interactive based forward. the backdrop, online discuss subscribers WPT and continue shift pillar, Recent in production Based review prior revenues are of million and for as going second year services to declined tournaments these a Total

to and that in from the last the solid offset revenue While that imports growth other quarter and versus more interactive and services, expenses successfully measures. by the financial In by pandemic saving second took activity administrative significant we on and impact experiences our reduce reduced million resulted as and general Due revenues total, the experiences minimize reductions to actions content multi-platform year. marketing of persists pillar, our period reduced to position. as board from up we the a These shuttering in-person negative include of we level across selling generated actions X.X the related the from same this expenses quarter. reduce levels for businesses salary cost the entire was our than well the of this

debt, the refinance our and CFO Importantly, instability more Hung, position the remarks. Tony short-term forward. will in outstanding improved this in detail discuss his we successfully going financial also which liquidity, Company's significantly

pandemic has the impacted remain popularity created ability adversely in valuable of we esports, the that positions quarter second a in clear result in on orders. which is it results, capitalize to While financial our shelter-in-place gained our as confident the we

a promising has business build Additionally, outlook. and this very WPT continues to steadily

highlights businesses built around is model have our to As to previously, three potential these our complimentary namely pillars, a and interactive of strategic content, that, let's of experiences, multi-platform the we explained goal in-person as through quarter With turn the an during as services. maximize and the everyone in-person entertainment previously bullet as in quarter. second noted suspended industry, activities partnerships. Like the announced first second strategic earlier, live our well on as we and results, event the update temporarily

boost these As multi-platform work the the placed us on services times pillars. particular, and we holding a to interactive help the hard pipeline heightened carry a all fans live life. our In new to content events simultaneously services to of to normal interactive result of funnel of to focus shift led to to our team, strengthen significant through dedication and begin and as a circumstances events unprecedented to online

XX Looking time and units. in proprietary believe online of was in for our quarter, North European us with pillar at Allied XX our when emphasis model We Esports customer available. productions, events helped the total, pillar, our events at in-person produced the second pillar on grow business not our and this American XX online the interactive a across third-party base

model with daily the program The a running through also our a wagering will The group VIE.gg. have to announced most operated We and late CS:GO sports VIE.gg tournament designed Series launched simultaneously monetization kick Group betting, which events of thrilled that betting off August with Series, of are successful and form esports and Legend the and Legend we for will content with brands, provide sports platform is longest betting of brand in competitive to week content. to to gaming is program Esports our elevate their to two their new sports component a robust VIE.gg the and one pipeline further. in Allied authentic recently partnership work Esports platform original and introduce consumers new Entertainment all even and add

can and offline be community with of the fundamental fans with authentic While platform closely continues platform and the for to mature, win an we the host further represents have This block. Esports developing building platform Esports watch, we online an will for term, members and other envision to Esports based comprehensive esports to where play experiences service and a experiences interactive Longer the services fans. the important players personalities always on platform as integrated influencers. online tournament tournaments subscription online with Esports create and top Esports built business

U.S. partypoker money the June, we and on events WPT X,XXX the on was partypoker. events WPT online than entries. that Network WPT online XXX,XXX also were the events In to Main set WPT in held with overall in most mentor since first for Turning online States ever was poker Network's the event event The X,XXX seasons, United first the festival the Gambling Enforcement the first second the pool for online shifted Festival attended environment. entries the ever to In in-person the Series Internet largest prize XXXX. open history. set entries. record Event event the WPTXXX The previously Act take his This XX entries, largest online U.S. in more partypoker. The record became also adopted May, gaming to partypoker Unlawful attracted WPT WPT, WPT in largest X,XXX real hosted on place the Online was WPTDeepStacks features event

the poker to purchase platform the membership includes events, club World offers based strategy no online its interactive a with services addition ClubWPT, successful subscription In the online Tour that necessary. Poker

players. proven November, pool is launched event $XX,XXX. with place tournament a the championship, to part early prize is expectations. second which Xst, through period. has popular XXX,XXX increase very in membership accelerated pool June exceeded increased the impressive XXX% of constitute single generated the history, level in during to these run of prize will second quarter, ClubWPT XX% quarter ClubWPT first first largest These XXX,XXX in registrants an top qualifiers, Thanks Diamond, diamond the in level subscription a which from club of activities, we the result During year the the On WPT June from clubs new taking in will This prior the year-over-year home premium October, day amount be we adoption launched new off also quarter. registration an in our ClubWPT on ClubWPT to which

or increase and distribution television Poker business direct of and this of continues alternative many period revenue be and has use interest over of long same during track is the subscription World next business generate content hybrid where monetization our ClubWPT years. from quarter for record second third or our optionality content on we poker of sponsorship, live effectively Tour for for has to we that distributors, party is XX/X hosts a This Importantly, The where model the various crisis XX% model via pillar basis. produced content, year. for demand streamed, could other product. content packaged, a solutions. Overall, last retain multiplatform executed sports consumption increased success

marketplace syndication the Second include WPT the Seasons distribution of quarter the XX linear and in TV XX for in of highlights XX%, U.S.

addition, not markets opportunity XXXX, sales we the In should national in us of put buys to position selling revenues. WPT have that future would This access otherwise ad ad this increasing the in previously. reached potentially allows

In XXX% period. also over fact, the second was year-over-year, quarter linear up household penetration the grew while XX% viewership year linear prior in

which series Central provided Celebrity finally, million This and event aired Budweiser on And produce regular online front featuring weekly pivot assets, Twitch with WPT leveraging nationwide events live and Jon partners promoted of guest including more an including than on Hamm Alexander on online Jason to WPT opportunity challenge viewers. streams an the addition, on to talent and Andres, of product FSX by In X platforms ClubWPT with ClubWPT, WPT play Poker Company's thousands of many in Wall tournament, Kitchen Jose the others. of canceled, OTT King's ClubWPT the audience in viewers. live a to has ClubWPT celebrities among for

the the I Esports of content the move remarks generate continues pillar in earlier we business, that the are On discussed to side in-person my significant from streaming.

versus and quarter, games, traditional launched the to developers, brings athletes Game of production evolutions behind program and with in offerings second video programming telling we the together, the which of including focused the of dive a Spotlight, multiple their on the their Esportstudio, game stories deep compete HyperX game proprietary episodic sport. including During sports and partners, inspiration

live to on also live on addition Germany's OTT sportdeutschland.tv Esports In air streaming Twitch, studio platform.

of the the We program Riot Series launched also edition Games, of featuring VALORANT Esports launch our the XXth Legend year. proprietary by biggest

accounts on and Twitter, before the tournament closure and the dramatically HyperX Importantly, time Esports Esports of Facebook immediately increased same the content the interaction Arena. Allied media participation online focus Instagram period across versus social

relationship strategic provide Now, would on Property Brookfield Property to I and like an our update with Partners. Simon

the Simon's these this working location Esports are located selected Atlanta year, and gaming and with important Metro Venue. experiences Mall as production deliver through in Earlier an to partners We as facilities Brookfield area Property. select the Georgia venues esports in of Simon for Allied integrated was

we due Esports to currently ended. the crisis While concepts COVID-XX project on our Simon milestone until remains partnership keen has extended is Simon under the and the pandemic, agreement the halted have

relationship mall Part also the with of venue with plan an the opening Northwest Brookfield We existing concept expand on announced slated a similar We the in XXXX. currently to strategic for States mid retail United Brookfield. to location

remain malls, this initiative, Although, continue you the pandemic timeline of business our with confident update has we prospects the and future calls. in expansion progress deleted to our on to in we'll

turning I Before flagship Casino. Vegas it HyperX would Las to Arena at update to our Luxor the provide over Hotel Tony, like also Esports on an and

growth already recovery progress We to developments to remain in-person the we While segment on there our further committed believe make actually business live modified of long-term the in-person June is continue without restrictions and with play we our of daily for on pillar, schedule begun. and indirect in live XXth, opened tournament. for opportunity The exciting we the esports a weekly and facilities business. certain an

We we those, demand weekly tournament and our the by our live to offerings. online in-person are continued have tournaments motivated weekly expand and early for seen

our Esports guests our by lowering beverage hours priority. safety, play are team distancing remain far also to place enhance remain demand top XX% seeing throughout protocols to all trust safety That our thus the implemented capacity HyperX with extensive protocol. and venue. safe Furthermore, effect, sanitization and service events Food in members level. a have provide has said, and arena operating in sanitization physical pre-pandemic approximately Arena health earned the reduced is As the for forced of of encouraging and we and customer limited. and our customers

Tony as production of on events Looking live forward recovery and we updates, our to turn on. financial With more results. to that and quarter services, events over for CFO would in-person continue to our focus Tony? call the like on online I second the Hung, detailed carries Hey,

Tony Hung

and today. everyone afternoon Good thank you us Frank. for joining you, Thank

As Frank COVID-XX quarter the pandemic. markets challenging our mentioned, as the were throughout environment, of the operating most to second shut down quarter market due

While was of the significantly focus to orders, shifted interactive our our multi-platform content we the pillars. in-person pillar quickly development our and shelter-in-place strategic impacted by

expenses of pillars, lean we state two recovery our liquidity events, working capital and to to As adhering while remains our our these uncertain these and continue local into diligently manage and strengthen structure to on in-person restrictions, live and priority the to during times.

XXXX second quarter for from XX.X% revenues Now revenues, the higher second X.X year-over-year, turning total in-person were to to of million, pillar. primarily partially down our the offset revenues content quarter lower results, due by interactive and multi-platform

a million of the Multi-platform closure period, decrease of revenues due spread of results million, Looking second X.X million, to year-over-year total result of throughout revenues a at year these prior decrease in quarter year markets greater pandemic. million content of quarter a the X.X compared most detail, in-person totaled to XX% the period, as XX%. in the for X.X the to compared X.X the the prior in

for we to true revenues quarters. experienced on content, decrease previous music a a content our primarily have royalties While we in due seen in more multi-platform up demand

sponsorship the In pandemic. WPT quarter of second addition, we revenue generated due in of to postponement from lower the the XXXX, final tables the resulting

to the period. of from in X.X quarter million Overall, and the second by million Allied interactive decreased compared Diamonds total service. X XXXX. in to from Total million registration revenues totaled to launch the premium of XXXX X.X primarily the revenues strong successful in WPT ClubWPT derived to from an Finally, prior attributed of million, Esports second increase growth in prior ClubWPT million X.X the quarter year from derived in X.X XX% decreased period, XX.X revenues million

We by prior Multiplatform well impacted or the general or in the the World administrative Total pandemic. year $X.X $X compared pillar the million. globe marketing business as by quarter growth mature significantly in tours spending. down expenses expenses by the we XX%, mandatory million, Although Esports expenses Allied despite $X.X million from pillars year-over-year quarter year XX% their and aggressive reflect generate revenue shelter-in-place million selling and and prior XX% shutdown million. non-essential costs in-person events in partially multi-platform second the for during $XX.X offset decreases Poker to reduce The period. services to realize and orders content and and as XX% the our by online year-over-year in pillar or to The actions $X.X us swift in to the or expenses were were pillar factors. all the interactive costs $X.X total active several by reduced allowed took from million, actively transition decrease expenses period, significantly across and and the the

in XX% to the services, $X.X recovery or out operating continues. quarter rationalize online of million increased we to as online expenses continue XXX% the expenses of increased events or pillar compared expenses interactive million, second And production the First, in-person build live to $X.X XXXX. events and as

of In addition, $X.X $XX.X we loss second ESA, investment million year in against operational impairment to versus million approximately due a our of prior The second none the $X.X expense loss quarter up stock $X.X Total I the of agreement, in million, of in compensation million charge which and expenses, based decline for incurred in was in moment. more million primarily refinancing a from from $X.X a net XXXX. conversion net period. to detail quarter in the will addition the inducement describe results, the was

cash, included proceeds million including XXXX XX, restricted million of Now, balance million, the loans our increase cash. which employee shares $X of December WPT from million $X.X our moving June position large Esports as is certain raised The for the capital sale of XXXX, common to of of Allied stock, cash restricted million $XX.X from our withholding compared due as total Chairman, $X.X sale at additional of Berman, million tax sheet. XX from of $XX.X purposes. PPP $X At through to in cash and long to part Lyle

quarter, series executed debt and of better a position company our to second the we activities forward. During going our convertible refinance

the this, at X, their their common of agreement promissory at Company's note Company's convert agreed million convertible to Pastures May to share. the common the million Knighted agreed stock convert principal note Company. of amount the of stock into $X note On into million XX, an shares $X April who $X of remaining with per LLC, part we by share. $X.XX XXXX, Knighted into they As the also held entered of $X.XX the per issued On bridge

$X this bridge on senior group million by held interest of and fees agreed note Pastures to also the extension interest, holding XXXX. XX part holdings. $X of of months. the their million net Company's finally, extension And to As accrued of Two agreed month a due additional new in has investors convertible Company maturity transaction, accrued convertible the debt XX note holders, collectively secured in and Knighted of the associated month also maturing the remaining notes existing principal on institutional respective an million to of August XX interest agreed $X.X refinance originally and the into an

interest to the million that its next allows us future. outstanding the to to Entertainment economic while to the opportunities creating in on XXXX. for our XX, and we debt With the uncertainties growth addressed navigate position refinancing financial during look million a transactions, to This continue manner better COVID-XX accrued that entire with and as months, Esports $X.X mature XX of flexibility for optimize $XX improved and significantly over has these the liquidity Company the XX completion additional value pandemic, capital, provide will Allied of was August scheduled of has now

the in from Azteca Azteca sheet with from we common the more future entered our turn, platform and generate in our into share we amount proceeds X, guide our Esports contribute multi-platform are impacts, filed as Allied And we term TV shares return, from X-K significant transferring allowing our TV their to then unprecedented X.X not to and amendment additional if on party's we XX month Azteca, our for us shortage. in their sale services further of million content expansion invest on July more they the right do to stock, Finally, purchase Mexican cohabit In the In from business detailed XXXX, to to selling the stock. the develop equal size gross and will pivot lockup and commitments agreement for we that strategic releasing least alliance March X of to In the strategic an TV cash. environment Esports eliminated existing summary, the obligation pandemic, and WPT at successful or conserve continue various an million such capital felt to business. of using to despite which and offering an interactive the initiatives XXth, of models market.

online We our we with environment and sheet. are as opportunities We realize growth continue business our that of can balance remain that benefits and of operating we of are while development in current our optimizing our thrilled services in production the reception optimistic strengthening the areas operations events generating. our the to accelerate

We will Operator? now line the Q&A. for open

Operator

you. Thank

will Global first question-and-answer Brian [Operator Instructions] comes We question Partners. of session. be the line conducting now a from Alliance of Kinstlinger Our

Brian Kinstlinger

I there's sell write Azteca. they Can the and details and am to on reiterate what up TV wasn't your down it capital I fast able Tony just I to quite so the that are the discussion, you note just didn't need behind that the taking many enough? pick what details

Tony Hung

the to that Brian. call. joining and Sure be happy I'll thanks for do

may our to strategic partnership had them, been into As million which with that recall, a agreement of X TV we has Azteca, million invest we invested. already you X have with original commitment the

we So, due X million of years. next commitment had two remaining the over ongoing

the now we've amendment, additional X of As commitments. eliminated of part million recent this

on And there's the as TV released subject which Azteca So, now is they were that. partnership, hold of flip as also part then on side, obligation. being the And entire our strategic fulfilled we've purchased essentially, a lockup. are make have we've shares, what to then original basically Those well. done

sell of do receive proceeds gross shares X.X will So, then million we and on the between they on receive those the sales, actually million. they from that a hold difference what those X.X the to don't make and extent

Brian Kinstlinger

they you many have? me? just Can shares do remind How

Tony Hung

Sure, it's just XXX,XXX about, around shares.

Brian Kinstlinger

And around that moving beverage. a first capacity, less You what's on XX% in-person? gave of can the revenue decline going business, lower the the you much light about trend right and less In be quarter, like of lot increased to the we more XX% way quarter, food in XX% should to late in then decline just capacity talk your the details now, little numbers? further? always to something in predict XX% that talks a to a to much in-person lower any XX% but with should is think opening these there about I and mean, it even how

Tony Hung

Brian as reached obviously, back Yes, knowing the feel COVID pandemic definitely starting not how the bottom and to up exactly but in-person, out, typical are we're that I is it's play again. going of you kind know was trend

revenues arena, revenues of mentioned we in-person, from Vegas a well the to events, already of So and online seeing sponsorship Las stable receiving, we're the forth. base been so as had coming as you that some the on revenues tied as

more opened now I factor of up and more think, as well. mentioned, big And full we to bigger, the once will booking again. the that see Esports you as party start had think arena events I you'll those quarter, third that trend the for a pre-COVID have we as been start then doing be we other again

Brian Kinstlinger

will least, or at you Have yet? yet? those of not into any future come done the you have And

Tony Hung

have to provide Jud, other more some do that and we but we one arena to a the as the Yes, just started with color bit there, day as well. little do probably our truck, starting did we're can

Jud Hannigan

a time. Yes, you. Thank we have

Brian Kinstlinger

drop highlighted revenue. you've then, the multi-content And in

demand little timing sounded up? could much decline specifically, and buckets each sponsorship. music three You true-up I less What the from maybe for of And the events, true-up result? what was decline some is? talk you put a music one? about then assume mentioned a maybe as like How the

Jud Hannigan

a royalties because seeing increase Sure, paid business But our yes. a is bit there's rare lag level, because, little we get those continued a there. months content. a will demand for about It's we in a music a little period a typically complicated confusing of six at little so are in

And too true the in royalties. multimedia those result pillar content this music or from so, quarter came up from of decrease of vast the a majority revenues

earlier have The that of impacted revenues are I on sponsorship the done. And other recognize of sponsorship got those piece we much mentioned tables some that until but don't those was deals pandemic, the them also side, in not we postponed. final the tables but final as because because place, COVID-XX

to So also those when come year. last those when But impact revenues. we'll that then compared an had be to back, able recognize

Brian Kinstlinger

for So quarter versus what were royalties second the music the year year? this last

Jud Hannigan

also Yes, the music for XXX,XXX then of royalties, that the the versus was about last some year then XXX,XXX there was that you're and talking about And true-up. nearly quarter. so

Brian Kinstlinger

and Right, so the true-up how much?

Jud Hannigan

yes. makes true-up the roughly, So XXX,XXX, up the other about is difference

Brian Kinstlinger

consumers question, thoughts at strategic breaking high is plans talk then, at medium mid-XXXX, long you the go Is your but to but for sounds It construction given reluctance the this hope level. you'd in think open of process your in how business maybe as term? and soon and term strategy level about near your I malls And any change there more this are to high a thought think headed we tomorrow. your about for as like

Jud Hannigan

Yes.

that in this I activities bit think business better talked others, we whenever and partners. do we're locations. those will moving situation like of little of they future arrangement very up in And Whereas monitoring their general, permanent of still thinking situations. locations. top the are and of the pandemic all near meantime, tried is the some we're kind a and more in things closing to we're some the easing with fact, in the are figure constant one more, dialogue to on or But still cater out how for talking them in they the along we

be But we run. to discussing what back believer meantime a very have watching around were and in like has When we us getting will are still we that just Tony have we're things also partners. with the those in focus So, strong these saying, for keep this been long business area on still situations. the better, good arrangements to at

Brian Kinstlinger

mid XXXX, it end the the sounded and like year. northwest I to a maybe assume one have of second in by hoped the you'd

for having two scenario locations. XXXX be statement good a So your in is view? an Would that accurate

Tony Hung

a up be scenario. being see how and to economy we would really is again, that. good opened That what's pacing on But have the

Brian Kinstlinger

And I so the ago of versus end then how I question year many missed have March the talk On last subscribers in how how many subscribers? period? last is. were quarter? you Yes, details. online, diamond -- have about, did diamonds question might There may. WPT compare how you the many it. does many at And that

Tony Hung

this is Tony Yes. again. Brian,

we publicly the online you ballpark in you the five of the of want a a I'll share the piece WPT doing. subscriber little don't disclosed terms numbers, color And So, Adam, range. of if haven't bit figure to I kind then in of how has business been but actual give know they're well

Adam Pliska

Sure.

terms our -- a beginning at started new because started we in of of when initiatives. see So to January the actually that's tick up we

so they were, will magnified continue transferred long have people are practices to online crisis this the done. and addition in streamers good, As best home, just we increased became had were after more at and is COVID that our which that talents we that

a we that started our expectations -- amount, were certain and so we be. substantial what say was to or I overall that, within week is hoping the May, would diamond before what convert really thought we quickly can first we were When in we but realized had So saw month uptick a a what ClubWPT. in

ClubWPT fastest this confident are the the think a will I of definitely become significant the that of growing remainder and year. diamond we for part now

Operator

Colliers Derek Our from with of your Please Soderberg the proceed question. Securities. comes line with question next

Derek Soderberg

relates compared in-person. My the to first to online question event

expected guys you online out has sort events? guys quarter online revenue your get relative of strip of relative what your had event. an revenue from to I events. maybe full merchandise a performed And per if now was in-person How then So you wondering, to your typical traditional event food, back have event in-person May? online to guys you beverage from events in the from

Frank Ng

you in fill the on we've and from go terms the can a out. of a I Jud, anywhere size I with as six pleased have depending little mid vary more bit of know, kind how if start playing the think But Sure. five the events. been then ahead events. don't the to those want bit event, pretty can and overall, they well. And to Then specific why But Jud size little third-party don't color of figures some from in add been figures, of I those of

Jud Hannigan

Derek events which online. is add I'd can do is, What frequency the we to at

are there one event So what comparing event player event for pay an to if intermediate for one there economics versus you're an entering a in a arena, versus coming particular might experience. different one online in

things of in much online frequency we greater the is can do detail. which However,

and arena. think operating our I So, in just practice of difference that's kind online there the versus main in

Frank Ng

we're before. pure VIE.gg, announced of BXB and again, some can we're for event those engagement we're a I VALORANT the of true series this have which have them. more for events, these this retail sports is a we online course all impact of opportunities we've betting in new beverage doing had also answer side. and impact. as the for also BXC part Like series a on we moment running before. had part, will part And It's But Yes that Series the at in has drawing customers, the that example, is, that for it. something doing is new Riot. more BXC the online some the we're never and never for the official online event, It's

these So, can new BXB be also those lucrative we opportunities, as more a we're well. which as lot of events, attracting online do of

Adam Pliska

greater. impact the during group will focused Adam. the it a It the flying side to it business, and more switches of a forward. will put or even the also this WPT wherever the time. substantial when a not you're going question Esports events of scale these you're this was people Marrakech but your margin Derek, has on is and or know online this whole is and Uruguay be be basically substantial impact I is, And

by Frank, Tour Main we had Event, all was Event largest Main indicated So which time. a of as Tour our

That it right of put an on jumped the now have so are partypoker. that has was the We going $XXX guarantees on now. partypoker May going to behind event right event into million successful, events in

forward. looked to So, probably we will run a that's to see you where really first in at think in so But you the brand. always this at going pillar be WPT is And able substantial feel margin. the long the cost and XXxX where least, area a we term, the where that's that you're lowest flip great for like your growth change we that's case, opportunity as to things events build going and the

Derek Soderberg

these piggyback the some at you in kind you limited concurrently? then of your guys And with events just can hold some and your locations, servers of that of team locations. being to in number online all working on guys Are different maybe different of to points

Frank Ng

of partners we directly the they wherever the can a publisher, servers States have those events, locations all using, owned we by their all as they and by first in us we're in one we've run and other working team well. Actually, servers that team provided have servers, game Mexico Germany and so, United in

big with around we the to. online run XX pretty to network, can this much need hours XX to So, clock if we tournament,

because frees we fact, limitations, we production it in me once think capacity, our increase and I online any online, in So, actually dramatically get up, we see now. we're really engaging don't

Derek Soderberg

really you on line? an you for top wondering materialize to know to a then maybe large us to see those if start and And before, one, we that was the maybe but then remind it one final bit opportunities just how money start guys, I mentioned gaming, the of you've might back opportunity real little I can is when

Frank Ng

that's the us. step Okay, first major for

belief. must before. this any want I they designing first our our launch first time that and to their events which never entertainment, have tournament business objectives, VIE.GG. We with we partner satisfy area meant do VIE.gg, meantime, lot this but they done solutions, Esports, try, partner's create in We And to our lot has This a and have but to is to the our of is think business objectives. time a accomplish some tournament we been betting new content online believe

which engaging adjust that the for format And experience popular been spending we So, Europe. we the doing in a will purposes a have most long series we for one partner. for it our little bit take of enable more so a equal time

first on features the we again them. time deal, will the goals So, is it's format this their and And help the achieve a rupture run. a our And of some in of tournaments we stream redesigned the and to it -- should license tournament meaningful able arrangement, help to the hopefully better. them that much to be also we their a license something so get of more long

Operator

There management are call this at the further time. no remarks. I'd closing turn any to back to for like over questions

Frank Ng

Okay, forward today's everybody thank joining results our healthy. and us support for speaking to your safe when stay again November. we quarter XXXX again the attention you early you and this time with Thank We everyone you. record on Thank for and call. look in third please morning, and

Operator

does This conclude today's conference.

great participation for time. this a you and may your Thank at evening. your You have lines disconnect

Allied Gaming & Entertainment (AGAE) 10 Aug 202020 Q2 Earnings call transcript