Allied Esports Entertainment(AESE.Q), announced today that it has launched AE Studios, a new division that will serve as the original content development, storytelling and production services arm of Allied Esports, the Company’s global esports entertainment subsidiary.
“After years of parachuting into people’s lives through esports, we are in a prime position to serve our wide-ranging list of clients with creative solutions that tell an engaging narrative outside of pure gaming competition, with professional, experienced, digital-first production…As the world continues to use content to reach ever-growing audiences, AE Studios has the potential, with its unique foundation, to be a leader in entertainment production for years to come,” said Jud Hannigan, CEO of Allied Esports.
Much to my surprise, Allied Esports is more than just another esports company looking to make a pretty penny off of competitive gaming. Like a breath of fresh air, Allied Esports is committed to creating original content, storytelling and production services outside of esports tournament operations and broadcasts. Whether you follow esports or not, you have likely heard of competitive games like League of Legends, Valorant, Fortnite, Call of Duty, and Counter Strike. Currently, these titles dominate the esports market and have set the standard for what “competitive gaming” is.
However, Allied Esports’ AE Studio will leverage its years of digital content creation, experienced global production team and world-class facilities to delivery digital-first projects for clients outside of competitive esports spanning a variety of industries, such as gaming, entertainment, pop culture, music and sports. With this in mind, AE Studio will enable the Company to breach multiple industries while simultaneously creating innovative esports content and services. This includes AE Studios’ first office project titled CelebriTee Showdown.
CelebriTee Showdown is a live production featured on Twitch Sports and features celebrities competing in-studio virtually on some of the top golf courses in the world. In addition to celebrities, streamers are also able to participate from home via their desktops or through the mobile version of the game. CelebriTee Showdown is streamed live on Tuesdays and Wednesdays at 5PM PDT through July 21, 2021. Having watched one of their broadcasts for myself, I have to say its pretty hilarious and worth checking out if you’re looking for a refreshing “esports” experience.
Allied Esports Entertainment achieved $26.1 million in revenue in FY 2019. More recently, the Company’s Q2 2020 revenues decreased 38% to $4.6 million from $7.3 million year-over-year largely due to the COVID-19 pandemic limiting in-person events. Despite this, Q2 2020 adjusted EBITDA came in at $1.3 million representing the Company’s best quarter since going public on August 12, 2019. With this in mind, Allied Esports Entertainment could see additional growth relative to the billion dollar esports market, which is expected to expand at a CAGR of 24.4% from 2020 to 2027. With this in mind, Allied Esports could represent a disruptive force in the esports gaming market and may be worth keeping an eye on.
Allied Esports’ share price opened at $2.47, up from a previous close of $2.24. The Company’s shares are up 11.38% and are currently trading at $2.495 as of 2:31PM ET. Share spiked to $2.69 at open indicating that there was significant change following the news.