Alliance MMA posts positive 2nd Quarter financial results

August 15, 2017

Alliance MMA reported its second quarter revenue and things about to be looking up.  The publicly traded company reported 48% growth in revenue on Monday.

According to a company release announcing its results it posted a 48% increase in revenue over the previous quarter, “based in part on the increment contribution of our most recent acquisitions,” per Paul Danner, Alliance MMA’s CEO.  Danner noted that the revenue showed positive momentum toward achieving “a cash-flow positive position in the not too distant future.”

Alliance MMA has 11 regional promotions in its stable and is building toward a goal of having regional promotions in the top 20 domestic media markets.  It also aims to have at least 125 professional MMA events per year.

According to CFO John Price, the collective contribution of its infrastructure of its electronic ticket platform, fighter management firm SuckerPunch Entertainment and regional MMA events resulted in a 43% operating margin and a 14% increase over the first quarter of the year.  Price also noted that it had a “capital raise of approximately $1,500,000” to support its ongoing acquisition program.

Payout Perspective:

The results are good news for a company that has experienced a dip in its stock and securities lawsuits due to an alleged misrepresentation in reporting.  Notably, one of those lawsuits was voluntarily dismissed according to its 10-Q and the company states that the other lacks merit.  However, it appears that the plaintiffs in these lawsuits are determining who would become the lead plaintiff in a possible class action.  Despite glowing results, the stock on the NASDAQ is up slightly as of this writing Tuesday morning at $1.40.  It has a market cap of slightly over 10 million.

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