AESE - Earnings call transcript Q1 2021 | Allied Gaming & Entertainment Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Allied Esports Entertainment First Quarter 2021 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now conference will Glassen, to I Relations. Investor Instructions] turn over the Lasse [Operator ahead. go Please

Lasse Glassen

operator. you, Esports conference first Allied and Entertainment's results Thank call. afternoon XXXX Good welcome to the

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

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

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

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

Frank Ng

on the primary of our pleased last the I constraints. the as an and more with keep intend let's and I continue weeks the operational business our remarks in My Chief the through this this financial will overview Partners for Tour to ongoing With to Similar pending follow on just update just Overall, free Officer, corporate to on WPT's for quarter everyone current on Therefore, the been since to results WPT's of additional reporting in business today which or and to and results highlights prior continuing first efforts shortly agreements highlights. details subject an are for is quarter, quarter our has remarks operations detail of thank our be our last business in the AESE to and financials and to discontinued our the comparable afternoon. Allied today am Thank provide stock the Tony presented transaction joining existing of an highlights WPT prepared quarter since remarks. period the we finally, seven for expenses. overview today performance. quarter And approval. I it being headwinds operation, year. focus purchase our you despite will in you, that, our the quarter Tony his all pertain WPT's and Esports Poker World Hung, TopCo Financial the first the to go will grow Lasse, stockholders includes from and us Element results performance sold call, financial first pandemic. process on key our focus with move of operational will COVID-XX first past XXXX. my amidst earnings our our Esports

we to slowly in-person COVID-XX the We within as business pillar from face continue pandemic. emerged the

the distribution revenue Esports adapt for the a towards Esports announcements library the capabilities Multiplatform our platforms. hundreds the events of to and pandemic, of impressed drivers online content good out pillar hours our have nine-month Content pandemic. platform remote growth the been I pivot have we of made doing of airing building result streaming and MuxIP, well several tournament primary on our content Tencent’s business, has OTT the with over which as as which prior last to with progress new with ability our quarters creation month our were posed to this challenges of in culminated in events will Esports in-person program so, team’s of In Trovo the first While by partnership

our Tony significantly As balance, turn, enhanced financial remarks, further his off our our paying by in improving addition, debt will our In while and structure and liquidity capital in reduced discuss burden debt we position. further flexibility convertible

the environment As the accelerates of believe growth aspects Esports monetize economy improve ability to we look the we that ahead, the pivot and we strategic normalizes. as further to made take and advantage continues significant our of opportunities ecosystem

Now let's pleased Hotel highlights operational for at very HyperX of naming the in Casino and partnership Esports Las announce renewal business. rights were fourth We for turn our our our with global the Luxor to Vegas. the property quarter to flagship

X,XXX As media on co-branded referred Las our events as will HyperX and to of our to sports peripherals distancing Esports players experience brand quarter, the and arena, have our in of than all COVID-XX experiences and the our The more branding content competing period, on communities. including and our the as gaming. and Esports prominent and strong variety events across during the In promotions, tournament business demand as gaming thrilled partner XX online platforms. continued on to at arena fourth venue, offerings Allied to continue part restrictions most property and units. our leading tournament social our continue journal Esports Esports business across in to produced physical in Despite in events, Esports flagship truck. and associated Vegas capacity HyperX flagship of a and productions with growing we we respective for Allied HyperX XX that's assets social and arena prominent of North focused renewal outside signage agreement, the will third-party European inside arena all are Esports continue receive the well American three to with proprietary and

compete on again play events was tournament HyperX the The Nevada events for live plans California the Kart in at Property Speedway environment pandemic Night Company's debuted Colony Night trip public Saturday to The our metropolitan more in from featuring Esports Saturday Allied Property bringing first partners. pandemic, and a and the of as and Esports Land, the the and role XXXX continue area. Esports Houston took expansion during goers The the and edition the was received with Allied the Properties an XXXth partners made Truck's the interest We emerge Brookfield Esports on attraction Simon Saturday its outdoor champion Although tournament of road event weekly Brookfield remain to experiences was Night to Speedway, Mario on and creating Esports for has the broadcast Allied Speedway to our outside the hold can in Arena as last we the week. held since that enthusiasts day served which of mall roll event pandemic. March. Truck in increased in Texas. Mall received three of Taking very for well Sugar the onset First sparked esports

leader format, edition also technology commentators was held with wagering production We capture Legend in Series, deployed Xsens. three-day motion partnership for announced XX our included featuring tournament which take early opportunities animated which all and first The batters. events a of in next April winner Esports was the live The

in in recovery for underway. use of COVID-XX Six have to its Siege as HyperX by Siege production well traffic Third-party widespread bubble environment North America for Six FaceIT XXXX QX an for pandemic purpose COVID-XX We a this of is and Esports FaceIT consecutive quarter Las in our very of increase of the and Arena see believe Vegas began am events seasons Vegas North safe American League and League. were facilities led used a I of QX. its with Rainbow the the in encouraged into vaccinations. continued that foot distribution Las our again

live dose Nevada, requirements half feet completely be of and vaccine. are the starting are we to a lifted, well permitted and feet has calendar six to one indoor holds of COVID-XX The county for also the bodes in bookings event in the second pillar year. an and This creating around events. foundation will where and those world in distancing our least the these at uptick Clark person a to from May XXX% of increased in resurgence are population see Xst, the Importantly, These for three decreased county's efforts County XX%. capacity has restrictions on that social easing of restrictions stated received

for increase on the expediting the quarter, to of adjust live important million content the on focused live wait XX% to headwind platforms, model. ongoing the of our business the Esports pass, to views of continue generated multi-platform of we our content monetization In XX-hour As to for X.X first are strategy our fourth pillar XXXX. and efforts events compared streaming quarter an

the distribution p our end the it according world content believe Allied for across distribution percent channels. see Allied platforms library, of [indiscernible], SwitchTV, agreement air top YouTube we channels first of we us the Esports tournament by At ranked streaming and all has in distribution PLEX, followers announced RiverTV, to to addition, has increased of Esports and Twitch with including and additional beginning Twitch execute our stream digital opportunities positioned the opportunities. English In MuxIP screen hours period. garnered on XX% is X.XX% XXX for most average the to We views distribute the this channel over a increased around Esports these ranks taken content we'll and to channel OTT on believe content XX-day with along our of XX-hour strategy, content SportsTribal. week, the dealership the which TwitchTracker.com, our steps platforms. based viewers, followers, We time recent during quarter, Last

of of and recovery Our for if of to market a the its live resurgence this second year. events in early half are the at strong belief stages, seeing we positive world normalized return indicators is but

are live maximum the foundational with will content the environment properties. multi come operating We together business of capacity pillar in our alongside we of where be various will our optimistic return an of platform resurgence Company's soon may and events, at the strides that the on

that the agreement purchase Bally's to the quarter, XXXX, WPT Element Before proxy countered turning SEC provide Element existing like XXX seeking transaction business we and to sale the first on Tony transaction XX, approval and reflect pending throughout Corporation the of March offer the competing on agreed a preliminary by our on their our with Bally proceeding I for to to Partners, announced detail, million over Poker LLC. World much bids our update sell Partners parties quarter our Tour, statement and has it and Element. the to Today, stockholders transaction the After quick discuss end, of more financials purchase was Tour not to the terms. XXth. in to WPT Poker this multiple would Element with to to World latest the between first are To filed May the adopt detailing of amended updated we for a

with of any will with Directors in we purchase believe of we compliance agreement to With the update due Partners. late that, course that first results. Tony. will to time, quarter At third of Tony Element on XXXX. the customary financial the call CFO conditions our closing Board turn transaction in this subject over the Our for in proposal additional evaluate our stock close like an or second I to quarter would early terms Hung, quarter

Tony Hung

us first thank joining everyone for afternoon during XXXX. Thank progress the Good you, of made and today. Frank. solid you We've quarter

and we continues While of our safety and to reduced of an foot development year. and are multi-platform on in in holds make result seeing our pillar as bookings event the also We've an recovery protocols half and by we second impacted travel pandemic, our is the as the underway traffic continued in operating believe to content Las in-person health the expenses. Vegas increase a of progress for uptick restrictions pillar and be the calendar

for Esports reminder, As disclosure our and the our segment Tour. relate continuing today World Poker our Therefore, operations AESC being the exclude of a operations business Tour Poker of and Allied discontinued to results as and parent World is purposes. accounting company the treated presented

the our for Now million turning continuing from quarter all quarter from revenues our first to total results down derived year-over-year and $X.X business. in-person was operations, pillar the XX.X% of

for hours, a comparison quarter result for as for compared quarter were a social the Looking the benefited of to pandemic. to and from results Net of the had minimal first from cash during in reduced to are impact first of an year-over-year million payable XX.X% X.X the to of at from of quarter a associated million in in of first and of continuing of costs of was a detail, prioritization of quarter first and from operations all in we agreement quarter and pandemic reflecting and XXXX. reduce and actively expenses decrease while million expenses of quarter in loss X.X compared XXXX. the was first addition prior a result year events, to of million, X.X XXXX quarter the Simon prior with Adjusted lower expenses occurred decrease during expense The a non-essential in year balance continuing comparisons, less first costs and these in due in-person EBITDA the expenses to result a of primarily loss quarter with operating manage during X.X year-over-year X.X cost notes greater outstanding postponed by return in-person for that distancing the loss Total revenues restricted million loss period first interest the was In improved a all also of decreased escrow measures XX.X%. XXXX, million principal versus items. to first our the expenses our improvement X.X of first period. million, million, costs online decrease the XX%, and quarter quarter, by expense the XXXX, across XX.X% net the pillar the selling spending X.X the expenses by operating Notably, of marketing that X.X compared continued of period.

X% as million, revenue States. Vegas World in grew finally, prior our in of quarter at event live XX% by of and year the ever United million within the Club continues States Venetian Tour's internationally restrictions X.X touch ClubWPT And the America was its to hold The not to the And subscription first January driven briefly pre-event largest in the at an growth up for the and fastest largest X.X quarter was the the versus million advertising. turn with in million. event and compared $X live Before Later was The Florida. first to I online presented the discussion promotional Open entries of Lucky which nation to largest remain during $X,XXX over like strong year events one discontinued also multi-platform XXX first in in in WPT in the the are X.X prior period. events and and March. for to a the period. WPT strategic the ClubWPT created WPTDeepStacks of with sheet, event first a quarter, the Crown continue the Seminole the period, prior pool total interactive results, and Las million. also third event This festival for first pillar the for net touch also entered Diamond. subscriber Rock also Hanoi Hanoi, providing as became for is Hearts quarter income event second then to stricter monetization Poker Hollywood, points pandemic. growing the Poker I in in but content both the balance in during for on WPTDeepStacks and the WPT prize ClubWPT total March, WPT a returned in services creating a in hosted January both being operation. new year of mentor Hard United compared WPT's WPT in pool high business, WPTDeepStacks over good held at XXXX North WPT by prize live in WPT's history market only $X areas be revenue field Poker margins history to Vietnam the WPT, WPT first

million million, but March This of the WPT discontinued transaction. fund until the balance business and million connection including available of Esports is included close totaled $X.X XX, business that restricted million $X.X the XXXX, our our included cash WPT sheet, XX, is million million of position to cash at with assets cash operation, $X $X XXXX, to compared moving WPT. $X.X Allied sale the XX.X current the to of of Now, in March at held which in cash restricted and of cash

bridge in while which summary, to pleased we've costs As with Esports XX, expenses with million convertible the to during WPT related In growth business the cash progress position sale explore February our we on still quarter of our $X.X expect opportunities. will pandemic March principal, of and made we strategically totaling also efficiently. in managing The XX, strengthen XXXX. and the had from gross and we debt place our matures XXXX, are notes receive infusion significant new continue restrictions expand to

That activity Q&A. see like employees focused we We as safety would the excited to we against on executing are while more our to and remarks, for remainder maintaining year open events time, long-term positioning this for growth the now our ourselves customers. of Operator? at booked concludes our prepared the and for remain strategy line and for and

Frank Ng

in gap] and healthy. again you this and thank you Okay, stay for and for joining Thank our safe attention your XXXX your support for afternoon us quarter and second August. [audio time please

Operator

This concludes conference today's call.

pleasant have Thank lines. your you disconnect may You and participating day. for a

Lasse Glassen	Investor Relations
Frank Ng	Chief Executive Officer
Tony Hung	Chief Financial Officer
Adam Pliska	President, WPT-CEO
Jud Hannigan	Esports Operations

Allied Gaming & Entertainment (AGAE) 25 May 212021 Q1 Earnings call transcript