OverActive Media loses $3.6M in Q1 2022

by Adam Fitch  · 
OverActive Media loses $3.6M in Q1 2022

OverActive Media, a Canadian esports holding company, has reported its financial performance for the first quarter of 2022.

Brass tacks: The company recently revealed that it made a net loss of $15.4M in 2021.

  • The company increased its revenue for the first quarter of 2022 to $1.6M ($2.1M CAD), crediting sponsorship revenues as the primary factor for the growth. OAM also noted that it expects to receive revenue shares from leagues in the second half of the year.
  • It posted a net loss of -$3.6M (-$4.6M CAD) and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of -$1.6M (-$2.1M CAD). For the same period in 2021, it made a net loss of -$3M (-$3.8M CAD) and posted an adjusted EBITDA of -$1.9M (-$2.4M CAD).
  • OverActive Media listed its deals with blockchain company Zilliqa and outerwear brand Nobis, as well as its entry into Riot Games' VALORANT, as its operational highlights for the quarter.
  • “We’ve created one of the most predictable and sustainable business models and continue to focus our efforts on generating high-quality, long-term assets with recurring revenue streams," said OverActive Media CEO Chris Overholt.

Recommended reading → How esports organizations performed financially in 2021

MAD Lions
MAD Lions players take part in branded content as part of the team's sponsorship deal with EPOS.

The portfolio: The Canadian company is betting big on franchised competitions, taking an approach that's somewhat comparable to major traditional sports.

  • OverActive Media owns franchise slots in Activision Blizzard esports leagues Call of Duty League and Overwatch League, as well as Riot Games' European LEC competition. It also operates events through OAM Live.
  • The company received permission to build a 7,000-seat venue in Toronto, Canada from the local city council in December 2021.
  • In 2021, the company generated $11.3M ($14.2M CAD) in total revenue and made a net loss of $15.4M ($19.4M CAD). It attributed the increase in net loss year-on-year as being partially due to having to make franchise payments, whereas it received forgiveness and deferrals in 2020 due to the global health situation.