Tix Corp. had significant lower financials in the first quarter due to the shutdown of entertainment venues in Las Vegas from the coronavirus outbreak.
The Studio City discount ticket seller for shows, attractions and dining in Las Vegas reported on Friday a net loss of $927,000 (-5 cents a share) for the quarter ending March 31, compared to net income of $50,000 (0 cents) in the same period a year earlier. Revenue fell by 38 percent to $2 million.
Due to efforts to mitigate the impact of COVID-19, all Las Vegas entertainment, restaurants, bars and major hotel properties have closed, the company said.
“With the closure of entertainment on the Las Vegas Strip, and therefore the cessation of revenue for our business, we effected a layoff of the majority of our employees, closed our ticket booths, and continue to significantly reduce our operating costs, including our (Chief Executive) Mitch Francis, who volunteered to stop receiving compensation at this time,” the company said in a release.
Tix received a Paycheck Protection Program loan for $980,000 to be used for payroll, health care benefits, rents, and utilities.
Shares of Tix (TIX) closed down on Friday by 2 cents, or more than 16 percent, to 10 cents on the over-the-counter market, on a day when the Dow Jones fell by 2.6 percent and the Nasdaq by more than 3 percent.