Canadian esports holding company OverActive Media has announced the financial results for the third quarter of 2023, ending September 30th.
OverActive Media has recorded its first-ever profitable operating quarter (EBITDA) and has promoted interim CEO Adam Adamou to a full-time position. This is despite recording a net loss for Q3 2023.
In the report, the company also shared that total revenue grew slightly and operating expenses have decreased, the latter due to reduced costs of payroll and teams.
OverActive Media is the owner of several esports teams, including MAD Lions in Europe, Call of Duty League franchise Toronto Defiant and Toronto Ultra. The company saw its total revenue grow to CAD $6m (~£3.5m) in Q3 2023, compared to CAD $5.8m (£3.4m) in the same period last year.
Moreover, its operating expenses decreased from CAD $6.6m (£3.8m) to CAD $5.3m (£3.1m). The company noted in its financial report that this was due to a restructuring of teams and reduced payroll expenses.
In addition, the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is positive for the first time ever, standing at just under CAD $800,000 (£466,000) for the quarter. This is compared to a negative EBITDA of around CAD $420,000 (£245,000) in the same period last year.
The company still recorded an overall net loss of just under CAD $2m (~£1.16m) for Q3 2023, but a positive EBITDA is definitely a good sign. Interestingly, OverActive Media recorded a net profit in Q3 2022 (CAD $456,000), despite recording a negative EBITDA.
Overall, OverActive has CAD $9.7m (~£5.6m) in cash reserves, compared to CAD $13.5m (~£7.7m) in the same period last year.
Interim CEO Adam Adamou has also been promoted to a permanent position. The Chairman of the company’s board, Sheldon Pollack, highlighted that Adamou was instrumental in guiding the company through its recent period.
Adam Adamou, CEO, OverActive Media, commented on the financial results: “The positive momentum is a direct result of our focused approach to ensuring greater operating efficiencies in our business. In addition, with our successful efforts to eliminate CAD$ 8.1m in fees payable to our league partners and the imminent receipt of CAD$ 7.3m from the Overwatch League, the Company is in a strong financial position.
“Our improved balance sheet and proven operational rigour should allow us to capitalize on the many growth opportunities in the esports ecosystem.”
The recent time period was a very interesting and notable one for the Canadian company. Due to the fact that Blizzard Entertainment waived all outstanding Overwatch League fees and that the company withdrew from the Overwatch League, substantial capital has been saved and garnered. OverActive Media has noted that this will be reflected in the fourth quarter financials.