Canadian esports holding company OverActive Media, owners of MAD Lions, Toronto Ultra, and Toronto Defiant, has revealed its financial results for the first quarter of 2022.
The company recorded CAD $2.1m (~£1.3m) in revenue and a net loss of CAD $4.6m (~£2.88m). Both figures are higher than those recorded for the same time period last year.
RELATED: OverActive Media releases 2021 financial reports
OverActive Media attributes revenue growth to an increase in sponsorship revenue. This is tied to the fact that the company’s MAD Lions team signed a lucrative partnership with blockchain company Zilliqa in 2021. The company had CAD $26.4m (~£16.5m) in cash in Q1 2022, compared to CAD $3.9m (~£2.44m) at the end of March 2021.
Chris Overholt, President and CEO of OverActive Media, said: “We are on a journey towards building a global company that will redefine the future of sports, media, and entertainment. We’ve created one of the most predictable and sustainable business models and continue to focus our efforts on generating high-quality, long-term assets with recurring revenue streams.”
The total comprehensive loss in the first quarter of 2022 was CAD $5.5m (~£3.44m), compared to a slightly smaller loss of CAD $5.2m (~£3.26m) in the same period of 2021. OverActive Media attributed the loss to “higher operating costs for the period” offsetting its revenues.
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OverActive Media shared its financial details for 2021 in April. Those results disclosed that the company’s net loss in 2021 was CAD $19.4m (£11.8m), compared to CAD $6.3m (£3.8m) for 2020. Revenues also increased in 2021. OverActive had CAD $14.2m (£8.6m) in revenue in 2021, compared to CAD $8.4m (£5.1m) of revenue in 2020.
Esports Insider says: The financial results for the first part of 2022 show that the Zilliqa partnership did inject some needed cash into OverActive Media. The company’s losses did climb, but very slowly, which could be a sign of growth. It is, however, too early in the year to tell.
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