Like every quarter Overactive carriersThe Canadian public gaming and esports company (TSXV: OAM, OTCQB: OAMCF) has released its financial results, in this case for the second quarter ended June 30.
During the second trimester, OverActive reported total revenue of $2.94 million, up $1.13 million from the second quarter of 2022, up 65%. The increase in revenue was driven by the club business, which was up $1.18 million year-over-year due to a timing difference in the recognition of league share revenue in 2023 and higher prize money received for second place in the Call of League. duty (CDL). ) Toronto Ultra.
However, the increase in the club’s operating income was slightly offset by a minimal decline in OverActive’s trading income due to less sponsorship incomewhose influence was largely offset increase in income from the CDL Major V tournament.
In the second quarter of 2023, OverActive Media reported operating expenses of $4.92 million, the smallest increase from the same period last year.. The factors that contributed to the increase in operating expenses were increased spending on live events as a result of hosting the CDL Major V and investing in the competitive success of their esports teams. The increase in these costs was offset by a decrease in corporate payroll costs and bonuses paid due to a decrease in headcount.
As a result, OverActive Media posted an adjusted EBDITA loss of $1.89 million, up $1.3 million from the same period last year.and a net loss of $2.6 million as a result of deferring franchise payments in 2022, which did not occur in 2023.
As for the balance sheet, the company said More than $7.02 million of cash and cash equivalents was available at the end of the quarter.compared to $10.2 million at the end of the second quarter of 2022. The company’s total assets were $62.11 million compared to $66.15 million as of December 31, 2022.
In the second quarter, the company achieved a number of important results:
- LEC OverActive Team, MAD Lions won the 2023 LEC Spring Championship on April 23 and recorded a peak viewership of over 570,000. spectators, the highest attendance of any team to date. MAD Lions had the highest viewership peak in the LEC and LCS and was among the top 5 matches by the number of viewers at MSI 2023 in Londonpeaking at over 1 million concurrent viewers on May 10, 2023 (view count based on EScharts data).
- over active hosted the Call of Duty League Major V at the Mattami Athletic Center in Toronto from May 25-28.. Over 9,000 fans attended the event, with tickets sold out in two days of the event.
- Team OverActive The Toronto Ultra qualified for the Call of Duty League Championships Grand Finals (June 15–19, Las Vegas) and placed second.
- This year, OverActive professional esports teams have watched over 42 million hours of all matches in their respective competitions.
- Toronto Ultra signed Call of Duty champion and All-Star team member Dylan “The Messenger” Hannon to his roster for the 2024 season..
- MAD Lions finished in the top two in the regular season, qualifying for the 2023 LEC Season Finals..
It should also be noted that on June 5, OverActive announced a deal with Activision Blizzard’s Overwatch League that included sponsoring the Toronto Defiant and waiving entry fees. The agreement included an upfront payment of an $8.15 million share of the league’s revenue. Shortly after the close of the second quarter, Activision Blizzard announced that it would offer a $6 million payout to Overwatch League teams that were interested in leaving the league.
Our leadership in the discussions between leagues and publishers regarding a sustainable esports ecosystem was highlighted when we reached an $8.15M deal with the Overwatch League in June, with the bulk of it to be registered in the second half of 2023. Since then, Activision Blizzard has also revealed that every team participating in the league, including OverActive, could be paid an additional $6 million. We expect teams to decide by the end of the year whether to accept this offer.
Adam to Adam. , co-founder and interim CEO of OverActive