Las Vegas ticketing group Tix Corporation has reported $1.3m in net losses in Q2 of 2020.
The operator, which provides discount ticketing services for concerts and shows via its Tix4Tonight brand, has closed all nine ticket booths of the business that is geographically concentrated in the Las Vegas, Nevada marketplace, via MGM Resorts and Cirque du Soleil shows.
Due to efforts to mitigate the impact of COVID-19, virtually all Las Vegas entertainment, restaurants, and bars, have closed, though hotels have begun to reopen lately.
In March, Tix Corp laid off the majority of its employees and suspended sales to shows, attractions and tours due to the coronavirus.
The company saw its 2020 revenues to June 30 decrease 70 per cent year on year to almost $2m, as compared to $6.5m in the first six months of 2019.
Tix Corp also reports a net loss of $2.2m in the first six months of 2020, as compared to a $37,000 net income in the first six months of 2019. It reported a $13,000 net loss in the same period last year.
It said in a statement: “We will continually monitor the Las Vegas marketplace to determine when and if we will be able to commence operations again. We intend to issue updated press releases as the COVID-19 situation, and its impact on entertainment and dining becomes clear.
“We plan to seek additional available disaster assistance, as well as other forms of financing to help with liquidity during this disruption to our business.”
Due to the pressures of COVID-19, the company has not made the majority of its lease payments since April, and is in default on the majority of its operating leases. As of June 30, the total amount of past due lease payments was approximately $639,000. Tix Crop said it is in discussions with its landlords to restructure its leases.
In addition, the firm obtained a Paycheck Protection Program loan in the amount of $980,000 pursuant to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and on June 23, 2020, it obtained an Economic Injury Disaster Loan in the amount of $150,000 pursuant to the Small Business Administration (SBA).
The company has also appointed Gopal Patel to fill one of the board member vacancies that was left by Michael Fisk and Jeremy Weiners resigning in June.
Image: Christopher Michel