Esports and poker operator Allied Gaming and Entertainment cut its net loss by more than half in fiscal 2023 after cutting expenses in several areas.

Revenue rose 15.6% to $7.4m (£5.9m/€6.9m) in the 12 months to December 31, 2023. This, combined with lower costs, resulted in Allied’s net loss narrowing significantly.

The group operates three core divisions: Allied Esports International (AEI), Allied Mobile Entertainment (AME) and Allied Experiential Entertainment (AEE), with a focus on the esports market.

Allied owns a number of global properties, hosts live events and provides production services across the esports sector. Its flagship venue includes the HyperX Esports Arena Las Vegas, which also operates Allied Esports Trucks’ 18-wheel mobile gaming arenas.

CEO Yinghua Chen praised the “significant” progress Allied has made in 2023. This includes the acquisition of a majority stake in mobile games developer Beijing Lianzhong Zhihe Technology, which was completed in August.

This, Chen said, puts Allied in a strong position for further growth in 2024 and beyond.

“We made significant progress in fiscal 2023 and entered fiscal 2024 in a position of strength,” Chen said. “AEI, AME and AEE are all poised for growth as we execute on our strategic goals this year.

“With Beijing Lianzhong Zhihe Technology now integrated into our business, AEE completing events and expanding its presence in Asia, and continued demand for our AEI properties and content, we are extremely excited about the year ahead and very confident about ours moving forward.” ”

The Allies’ net loss fell to $3.6 million

Looking closer at the 2023 results, in-person activities remained the primary source of revenue at $5.0 million. This was at the same level as the previous year.

Sales growth was driven by other business areas within the company. Multiplatform content revenue increased 42.9% to $2.0 million, while casual mobile gaming generated $698,522, compared to non-Allied revenue last year.

Turning to expenses, total costs and expenses across the company decreased 21.0% to $14.3 million. This was supported by a 29.6% decline in general and administrative expenses – Allied’s main expenses – to $7.6 million.

Lower expenses resulted in a narrower operating loss of $6.6 million compared to $11.8 million in 2022. However, the bottom line was improved by other income that helped reduce the overall loss.

Expense income was $46,684 while interest income was $3.0 million. This resulted in Allied suffering a net loss of $3.6 million, as opposed to the loss of $10.8 million the previous year.

Additionally, adjusted EBITDA loss improved to $4.6 million from $8.6 million in 2022.

Positive end to 2023

Full-year growth was supported by a strong end to 2023, with the fourth quarter proving successful for Allied.

Revenue increased approximately 75.0% to $2.1 million in the fourth quarter. This was again due to the impact of the Beijing Lianzhong Zhihe Technology acquisition, which resulted in additional casual mobile gaming revenue of $698,522.

Total costs and expenses were slightly higher than the prior year at $4.0 million. However, sales growth resulted in the operating loss being reduced from $2.7 million to $1.9 million.

Other income totaled $30,730 and interest income totaled $792,103. This resulted in a net loss of $1.1 million, an improvement from $1.7 million in 2022.

The adjusted EBITDA loss decreased to $1.2 million from $1.7 million in the previous year.