OverActive Media, the parent company of MAD Lions, Toronto Ultra and Toronto Defiant, saw a net loss of CAD$36.9m (~£21.8m) in 2022.
The net loss recorded by the company notably included a non-cash impairment charge of CAD$34.2m (~£20.2m). An impairment charge is used by businesses to write off the value of assets that have dropped in, or completely lost, their value.
The net loss is a significant jump over last year. Overactive Media’s net loss in 2021 was CAD$19.4m (~£11.5m).
The company has also seen an increase in loss for its adjusted EBITDA — CAD$8.8m (~£5.2m) in 2022 compared to a loss of CAD$7m (~£4.1m) for the full year of 2021. The company has attributed this increase to its investment in team rosters, people and products for future success.
Despite the losses, the company did maintain similar revenues in 2022 compared to 2021, around CAD$14.2m (~£8.4m). OverActve Media further broke down these figures by highlighting that 2022’s business operations revenue increased by 23% due to partnerships and events. But, this was offset by delivered team operations revenue, with a reduction in prize money income.
Whilst not included in OverActive Media’s 2022 financial results, the company stated in its press release that it has received league franchise fee deferrals totalling just over $10m. This is expected to be spread out between 12 to 24 months.
OverActive Media currently has franchises competing in the LEC, Overwatch League and Call of Duty League.
Overactive Media is one of many large esports corporations that are publicly listed on the stock exchange. Currently on the Toronto Stock Exchange, at the time of this writing the company’s stock sits at CAD$0.16.
Alyson Walker, Chief Commercial Officer, OverActive Media, commented: “Our business is rooted in long-term sustainable partnerships, audience growth and engagement, and live events. This year, we secured significant partner renewals and agreements with Bell, TD Bank, Zilliqa, and others.
Additionally, the launch of live esports events in Toronto has driven enthusiasm, engagement, and revenue to our business. Post-pandemic, we have experienced event and travel cost increases relative to 2021.
“As a result of the discipline we have shown in maintaining cost controls and the management of our professional teams, we expect the impact to level out in 2023.”