Esports holding company OverActive Media has announced increased revenues of CAD $3.7m (~£2.1m) in its financial results for Q1 2024 compared to CAD $1.6m (~£918,000) in the corresponding period last year.
The company has also reported a lower net loss of CAD $4.4m (~£2.5m) in this quarter, down from CAD $5.7m (~£3.3m) in Q1 2023.
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The financial report in particular highlighted the one-month impact made by OverActive Media’s acquisition of the Spanish esports organisations Movistar Riders and KOI which closed on March 1st. As a global esports holding company with headquarters in Toronto, OverActive Media owns team franchises such as Toronto Ultra (Call of Duty League) and MAD Lions KOI (LEC).
The Movistar Riders and KOI acquisitions resulted in significant changes within the company, including the addition of Gabriel Saenz de Buruaga and Gerard Piqué to its board of directors.
OverActive Media benefited from the contributions of Movistar KOI’s VALORANT Champions Tournament EMEA franchise team. The company also entered its largest financial partnership so far with its extension between Movistar Riders and Telefónica.
Increased expenses related to the KOI and Movistar Riders acquisitions resulted in operating costs of CAD $6.2m (~£3.6m), which is 16% higher than in Q1 last year.
Similarly, the company’s cash and cash equivalents dropped from CAD $13.6m (~£7.8m) as of December 31st, 2023, to CAD $10.1m (~£5.8m) due to incremental operational costs related to the esports organisations as well as a CAD $1.9m (~£1.1m) VAT payment associated with the acquisition of KOI.
Other influential factors that impacted OverActive Media in Q1 2024 included partnerships with Scurf Gaming and Blacklyte, as well as the company’s entrance into the Overwatch Champions Series. Its franchise, Toronto Defiant, had previously received a payout for exiting the now-dissolved Overwatch League.
More recently, OverActive Media signed several partnerships and entered a new long-term agreement with the Call of Duty League, which will affect its financial performance next quarter.
Adam Adamou, CEO of OverActive, commented positively on the Q1 2024 results: “Our first quarter of 2024 marks significant progress for OverActive Media as we continue to execute our strategic growth initiatives.
“We are thrilled to report that the acquisition of KOI and Movistar Riders has, as expected, immediately and positively impacted our results. Beyond the numbers, they have expanded our footprint in Spain, EMEA, and Latin America, strengthening our position as a global esports powerhouse.”
