Esports holding company OverActive Media has reported increased revenues for Q2 2024, up by CAD $2.76m (~£1.55m) compared to the same period last year.
The company highlighted its acquisitions of Spanish esports organisations Movistar Riders and KOI as key contributors to the upswing.
Keep Reading
According to the company’s financial report, revenue increased from CAD $3.86m (~£2.17m) in Q2 2023 to CAD $6.26m (~£3.51m) in Q2 2024, a 71% improvement. Operating costs also saw an increase from CAD $6.52m (~£3.66m) to CAD $8.66 (~£4.86m) — up 31% — as a result of the acquisitions and “higher roster payroll costs”, per the report.
This led to an overall 52% improvement in adjusted EBITDA from CAD -$2.54m (~-£1.43m) to CAD -£1.23m (~-£690k). Net Income for Q2 2024 was CAD $6.42 (~£3.60m), a significant improvement on the CAD $3.44 (~£1.93m) loss in the same period last year, owing to a CAD $9.8m (~£5.50m) gain following the termination of the Call of Duty League franchise obligations. The termination eliminated CAD $35.2m (~£19.8m) in outstanding entry fees for the company.
The report adds that the company’s Movistar KOI teams competing in the VALORANT Champions Tour, Counter-Strike 2 circuit and League of Legends tier-two Spanish league Superliga “drove increases in revenue from sponsorships and digital merchandise.” The company also saw teams under the Toronto Ultra brand competing in Overwatch 2 and Teamfight Tactics events at the recent Esports World Cup.
On the report, Adam Adamou, CEO of OverActive Media, said: “We have… significantly strengthened our cash and net working capital positions and reduced cash obligations by over $35 million due to the restructuring of the Call of Duty League, leaving us with one of the strongest balance sheets in the industry… Our expanding influence in the esports industry is reflected in our partnerships with top global brands.”
