Good day and welcome to the Allied Esports Entertainment First Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.I would now like to turn the conference over to Lasse Glassen of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon and welcome to Allied Esports Entertainment’s 2020 first quarter results conference call. Speaking on the call today is Allied Esports Entertainment’s Chief Executive Officer, Frank Ng; and Chief Financial Officer, Tony Hung; the company’s President and longtime WPT CEO, Adam Pliska; and Jud Hannigan, who is leading the Esports Operations, are also available for the question-and-answer session.Before I turn the call over to management, please remember that our prepared remarks and responses to questions may contain forward-looking statements. Words such as may, will, expect intend, plan, believe, seek, could, estimate, judgment, targeting, should, anticipate, goal and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those implied by such forward-looking statements, due to a variety of factors discussed in the company’s public filings, including the risk factors and documents filed with the Securities and Exchange Commission.Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.In addition, certain of the financial information presented in this call represents non-GAAP financial measures. The company’s earnings release, which was issued this afternoon and is available on the company’s website, presents reconciliations to the appropriate GAAP measure and an explanation of why the company believes such non-GAAP financial measures are useful to investors.With that, it’s now my pleasure to turn the call over to Allied Esports Entertainment’s CEO, Frank Ng. Frank?

Thank you, Lasse and thank you everyone for joining us this afternoon. With the COVID-19 pandemic significantly impacting people’s lives across the country, the environment we face today is very different from when I last spoke to you early in March. Given the unprecedented circumstances we are encountering, my prepared remarks today will focus on the key actions the company is taking to mitigate the adverse effect of this crisis on our employees, customers and partners, while maintaining business continuity and continuing to build Allied Esports Entertainment for the future. After my remarks, Tony Hung, our Chief Financial Officer will follow with details on our first quarter financial results.As the COVID-19 crisis escalated, we took a number of measures to protect our employees from the effect of the pandemic. We quickly implemented our business continuity plan designed to allow the company to continue operating as normally as possible on the extraordinary circumstances. As the impact of the pandemic spread globally, we suspended all business-related employee travel and established work-from-home policies in all of our offices. Through the successful execution of our business continuity plan, we have not experienced any significant interruption of our internal corporate functions.By mid-March, it became clear to us that shelter-in-place orders would be issue in most cities in the United States and in other markets in which we operate around the globe, resulting in the temporary shutdown of all but the virtual component of our in-person pillar of our business strategy. We quickly shift our strategic focus to multiple platform content and interactive surfaces in order to continue to serve our loyal communities and our industries at a time when they need us most. With our teams’ operations agility, we rapidly pivoted in the face of this adversity.Looking at the strategic shift for Allied Esports. The…

Thank you, Frank. Good afternoon, everyone and thank you for joining us today. As Frank talked about, our quarter started out well before the COVID-19 pandemic really took root in mid-March. While our in-person pillar was negatively affected by the stay-at-home orders, we pivoted quickly and accelerated the development of our interactive pillar. As we are really leaning into that area of the business, we have been working hard to reconcile our expense base with current economic conditions and strengthen our liquidity and capital structure, which I will go into more detail in a few minutes.Looking at the quarterly results, total revenues were $6 million down 3% year-over-year, primarily due to lower in-person revenues, partially offset by higher revenues from the multiplatform content and interactive pillars. Specifically, we saw a 10.5% increase in revenue for multiplatform content and a 5.8% increase in interactive compared to the prior year period.The increases were partly driven by the quarters’ trend over the latter half of March as the COVID-19 crisis manifested and we transitioned to more online events. Looking at these results in greater detail, in-person revenues for the first quarter totaled $2.3 million compared to $2.7 million in the prior year period, a decrease of 16.1% year-over-year.Multiplatform content revenues totaled $1.2 million compared to $1.1 million in the prior year period. And interactive revenues totaled $2.5 million compared to $2.4 million in the prior year period. Overall, total revenues in the first quarter derive from Allied Esports declined to $1.1 million from $1.4 million in the first quarter of 2019. This was partially offset by revenue growth from WPT, which increased to $5 million from $4.8 million in the prior year period.While our in-person pillar is historically the main driver of revenue for Esports business, the gradual declines in attendance as reports…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Jacob Silverman of Alliance Global Partners. Please go ahead.

Hi everyone, this is Jacob on for Brian. We have a few questions. With malls expected to experience financial constraint as anchor department stores have or may file for bankruptcy. Can you talk about how your criteria for mall selection has or will change?

Jud, Can you say something about this?

I'd be happy to. Thanks Jacob. So going into this, in a pre COVID environment, we had very detailed selection criteria and looked at not only the markets that we're in, but also analyze demographic information like Google Analytics as well as data game download data from Steam, which is publicly available. So we felt like we were really drilled down, especially with regards to Simon's and Brookfield’s properties as to where we felt that we could be successful. And so going forward now in this current time period, as malls are beginning to open, we're really at a point where we're just measuring data and trying to best understand how quickly could traffic comes back in these places and really seeing – but it's very early to tell as to the markets that are beginning to open how quickly they come back. So we're really closely monitoring those situations and applying it to our previous data that we've been analyzing for some time.

Great. Thanks. And can you talk a little bit about the numbers for online Esports tournament? Did you say 57 before or was that in-person?

Jud?

Sure. Yes, we've done between until we began doing this in March to May 7, we've done 57 online tournaments, proprietary tournaments since that time. So we've been adjusting our schedule and playing with a few different options with the schedule. But it's been 57 since we began.

Okay. And what is participation looks like? I think you gave some statistics before.

So participation has been quite strong, right? And again, that part of that adjustment in how we're looking at schedule and monitoring our offering is understanding what games are resonating with not only our community, but really the new folks that have been coming into our world. I think one of the best things that we've seen has been an influx people that were not our existing customer before this now all of the sudden participating. So we're growing our customer base in this effort, which is quite a positive move in all of this. And I think one of the things we've talked about earlier was in some of the cases, some of our tournaments have been over 50% filled with people that are outside our existing customer base. So that bodes well for our existing – continued growth during this time.

Okay. And then in terms of the economics for the tournaments, they're the same, but you're not going to have food and beverage and merchandise revenue. Is that correct?

That is correct. Sorry, go ahead, Tony.

Sorry about that Jud. Yes, that is correct, Jacob. So as far as the online events themselves are concerned, it's very similar to how the economics would work for any event held within our Las Vegas Arena. We just don't get the benefit as you mentioned, of being able to sell food and beverage and merchandising.

Okay, perfect. And one last question. What's your stock comp this quarter and what should we expect it to be for the remainder of the year?

Yes. So stock-based comp for this quarter was just over $4 million, but it was abnormally high because it reflected the return of the Simon restricted cash with $3.65 million. So I think in terms of traditional stock-based comp, you'd be looking at the difference of about $350,000 and that should be pretty consistent going forward through the rest of the year.

All right. Perfect. Thanks everyone.

Our next question will come from Jeff Cohen of Stephens, Inc. Please go ahead.

Hey guys, thanks for taking the question. Hope you’re all doing well. I think you’ve touched on this a bit in your prepared remarks. But can you talk about the subscription trends in the World Poker Tour business. Did you see an uptake in subscribers due to the closure of brick-and-mortar casinos? And then I think you guys did a price increase recently. So can you maybe talk about how churn is trended?

Sure. Adam, can you share some?

Yes. Sure. So we actually started the year with a number of promotions and some changes to our ClubWPT product. And so we had begun those promotions. Frank mentioned one of them, which was $1 million bonus. But we started to put other advertising we had, we started to do some brief rashes on the actual site itself. And even before COVID-19, we started to see some uptick. When – the WPT was a bit of a beneficiary of early warning from what was likely to happen because of our Philippines event. So we began the process of converting much of the focus of the company on to online.And so, what I mean by that is, the talent that would normally be at the event – the staff that would be on the event really started to concentrate on promotions for the product. So you saw a wealth of new commercials literally every week, even though we were doing them from our home. We saw new promotions coming out. And since that time we’ve had a considerable uptick. And it’s – I think Frank mentioned that there was – the quarter recorded a 40% increase. But if you look at the end of the quarter, it is really been and this last two months numbers that quite frankly, we have just not seen since the beginning.And so, we see that continuing and what – to the second part of your question, the other thing is that we are seeing much better retention in part because there’s a lot more on the site now. There’s a lot more activities. It isn’t uncommon to have 3,000 people at applying on one event on ClubWPT. But we do a number of other things. For example, at the end of the week, each one of our talent is playing and you can go on to Twitch stream and you can see them play and you can interact with them. And this is helping us a lot in returning those numbers. So, we see that continuing. And I think, quite frankly, we’ve learned some very good practices that are going to continue far beyond this crisis.

Great. Thanks.

Ladies and gentlemen, this will conclude our question-and-answer session. At this time, I’d like to turn the conference back over to Frank Ng for any closing remarks.

Great. Thank you operator, and thank you everyone for your support and your participation on today’s call. We would like to remind everyone that next week on Tuesday, May the 19th, we will be presenting at the 15th Annual Needham Virtual Technology and Media Conference. We hope to speak with many of you at this event. Thanks again and please stay safe and healthy.

The conference has now concluded. We thank you for attending today’s presentation. You may now disconnect your lines.