OverActive Media, the parent company of Toronto Ultra, Toronto Defiant and MAD Lions, has announced a net loss of CAD $3.48m (~£2.02m) for Q2 2023, an increase from the same period last year (CAD $2.34m).
However, the company was able to record revenue for the period, garnering CAD $3.86m (~£2.24m) — CAD $1.5m higher than what it achieved in Q2 2022.
In the first six months of 2023, OverActive Media achieved a total of CAD $5.48m (~£3.18m) in revenue.
Even though OverActive Media is still not profitable, the company was able to increase its revenues while maintaining its operating costs at a similar level — CAD $11.8m (~£6.85m) in H1 2023 compared to CAD $12.4m (~£7.20m) in H1 2022.
According to the Q2 unaudited financial report, the similar operating cost is due to a decrease in corporate payroll expenses in 2023 as well as in “management’s accrual of corporate bonuses resulting from lower headcount”. This decrease though was offset by the company spending more on team operations and live event expenses.
OverActive Media hosted the Call of Duty League’s Major V at Mattamy Athletic Centre in Toronto
in May 2023.
In its Q2 report, the company claimed that it has enough liquidity to meet its minimum obligations for at least another year. The report cited: “The company has assessed that there are no material uncertainties related to events or conditions that may cast significant doubt upon the company’s ability to continue as a going concern.”
The financial results are in line with the statement made by OverActive Media’s co-Founder and Interim CEO, Adam Adamou, who previously mentioned that the company would deliver better financial results in successive quarters. Adamou stated in a recent release: “We are determined to drive towards a near breakeven Adjusted EBITDA over the year’s second half.”
When it comes to competitive results, OverActive Media has had a strong year so far. Toronto Ultra finished 4th in the latest Call of Duty League Championship, receiving $660,000 (~£383,156). MAD Lions, on the other hand, won the 2023 LEC Spring Championship and will play in the LEC Season Finals to determine the European representatives for Worlds 2023.
In Overwatch, the company reached an agreement with the Overwatch League (OWL), Activision Blizzard’s franchised league for Overwatch, for a sponsorship deal whilst also eliminating outstanding fees it paid to enter the league. The deal was valued at CAD $10.8m (~£6.5m).
Activision Blizzard also disclosed that $6m (~£4.66m) will be offered to Overwatch League franchises that wish to terminate their involvement in the competition at the end of the season.
It’s worth noting that on June 30th OverActive Media issued 3m RSUs (restricted stock units) to the company’s executive team. They are expected to be settled through the issuance of 3m common shares and vest over three years, with one-third vesting on each of the first, second, and third anniversaries of the date of grant.