OverActive Media, the parent company of Toronto Ultra, Toronto Defiant and MAD Lions, has announced a net loss of CAD$5.7m (~£3.4m) for Q1 2023, an increase from the same period last year.
Last year’s Q1 net loss totalled CAD$4.6m (~£2.7m), with the company also noting that Q1 revenues have decreased by 23% to CAD$1.6m (~£950,900) in 2023. OverActive Media has attributed the results primarily due to macroeconomic headwinds, which it said decreased partnership revenue.
In a financial report, OverActive Media attributed the increased net loss to lower revenues as well as a decrease in ‘non-recurring income’ such as player sales. In Q1 2022, OverActive Media generated CAD$1.9m (~£1.1m) in player sales which ‘did not occur in 2023’, according to the company.
Despite the increase in net loss and lower revenues, Adam Adamou, Co-Founder and Interim CEO of OverActive Media, stated that the aim is still to deliver a path to quarter profitability by the end of the year.
He said: “Our first quarter is historically our weakest. Going forward, we see lower losses with each successive quarter this year. Our focus is on achieving high-quality revenue and disciplined cost management, to deliver stronger results and a path to quarterly profitability towards the back end of the year. Management believes that the Company has sufficient cash resources, that, along with a stronger second-half outlook, affords us the ability to self-fund our growth initiatives.”
Compared to the same period last year, OverActive Media’s cash and cash equivalents at the end of the period have dropped from CAD$26.3m (~15.6m) to CAD$10.4m (~£6.2m). However, as of May 23rd this figure has increased to CAD$11.6m (~£6.9m), according to the company.
Whilst the company has endured financial losses in the Q1 period, which ends March 31st 2023, it has seen notable successes competitively. In particular, the organisation’s MAD Lions League of Legends roster finished second in the LEC Winter Split and won last month’s LEC Spring Split. Moreover, Toronto Ultra, the company’s Call of Duty League franchise, won the Major III Championship on March 12th.
In a press release, OverActive Media highlighted that to date its esports teams have reached more than 25m hours watched across all tournament matches in 2023.
The company also announced that it received league franchise fee deferrals totalling approximately CAD$10.1m (~£6m), with payments pushed out between 12 to 24 months. The organisation owns franchise slots in Overwatch, Call of Duty and League of Legends.