OverActive Media, a Canadian esports company listed on the TSXV, faced a challenging start to 2023. Despite the company’s esports assets continuing to deliver competitive successes and attracting new sponsors, the revenues and net loss for the first quarter of 2023 worsened on a year-over-year basis.
OverActive Media entered into the Valorant esports ecosystem, not only securing an NA Valorant Challengers League spot but also signed its first all-female esports team, MAD Lions Laurë, to compete in Valorant Game Changers.
MAD Lions, OverActive’s League of Legends team, won the LEC 2023 Spring Split Championship, qualifying for the Mid-Season Invitational (MSI 2023) as EMEA’s first seed. At MSI 2023, MAD Lions achieved a 7th position in the tournament, marking the second-best result for an EMEA team.
The company’s financials for Q1 2023 showed a decrease in revenue compared to the same period in 2022. Revenues amounted to $1.19M, marking a decrease of $353.5K from the previous year. This decrease was primarily due to timing differences in the recognition of league share revenue and lower sponsorship revenues generated over the course of the first quarter of 2023. Additionally, the absence of live events in the first quarter of 2023 contributed to this decrease.
Operating costs for Q1 2023 amounted to $3.93M, showing a decrease of $534.8K from Q1 2022. This decrease in operating costs is primarily due to a reduction in corporate payroll expenses and effective cost management achieved via reduced travel in 2023. As a result, OverActive Media incurred a net loss of $3.87M during this period.
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