OverActive Media records first profitable operating quarter despite net loss in Q3 2023

Posted : 22 November 2023

Canadian esports holding company OverActive Media has reported its financial results for Q3 2023, ending on September 30th. Despite recording a net loss for the quarter, OverActive Media achieved its first-ever profitable operating quarter (EBITDA) and promoted interim CEO Adam Adamou to a full-time position.

The company, which owns esports teams such as MAD Lions in Europe and the Call of Duty League franchise Toronto Defiant and Toronto Ultra, experienced a slight increase in total revenue, reaching CAD $6m (~£3.5m) compared to CAD $5.8m (£3.4m) in the same period last year.

Operating expenses decreased from CAD $6.6m (£3.8m) to CAD $5.3m (£3.1m) due to team restructuring and reduced payroll expenses. OverActive Media's positive EBITDA for the quarter stands at just under CAD $800,000 (£466,000), compared to a negative EBITDA of around CAD $420,000 (£245,000) in Q3 2022. The company's overall net loss for Q3 2023 was just under CAD $2m (~£1.16m), but its positive EBITDA is a positive indicator.

Moreover, OverActive Media's cash reserves total CAD $9.7m (~£5.6m), down from CAD $13.5m (~£7.7m) in the same period last year. The company's Chairman, Sheldon Pollack, highlighted the instrumental role of CEO Adam Adamou in guiding the company through this period, leading to his promotion to a permanent position.

The financial report notes that the positive momentum is a result of focused efforts to achieve greater operating efficiencies in the business. Notably, Blizzard Entertainment's waiver of outstanding Overwatch League fees and OverActive Media's withdrawal from the league have contributed to substantial capital savings, to be reflected in the fourth-quarter financials.

Adam Adamou, CEO of OverActive Media, commented on the financial results, stating, "Our improved balance sheet and proven operational rigour should allow us to capitalize on the many growth opportunities in the esports ecosystem."

The company has positioned itself in a strong financial position, with efforts to eliminate CAD $8.1m in fees payable to league partners and the imminent receipt of CAD $7.3m from the Overwatch League contributing to its improved balance sheet.

OverActive Media records first profitable operating quarter despite net loss in Q3 2023

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