OverActive Media still in the red but sees better times ahead
Partners are key to improving the bottom line
Toronto-based OverActive Media is headed in the right direction from a financial standpoint, but still has a way to go until it’s profitable. Releasing its first financial report since hitting the TSX in July, Overactive has reported a loss of $8.2 million in the first half of this year.
Esports fans are familiar with OverActive as the company that has purchased franchises in Overwatch League (Toronto Defiant), LEC (MAD Lions), Call of Duty League (Toronto Ultra). As with any professional sports venture, there are fees to be paid if you want to play on a major stage. And it hasn’t the bottom line that a global COVID-19 pandemic has kneecapped live events over the past 16 months. In-person competitions in front of stadiums full of fans were supposed be a part of reality for OverActive’s franchises.
In its statement, which you can read here, the company says it brought in $3.4 million in revenue during the first six months of this year, which represents a 56 percent jump from the first half of 2020. That boost in money coming in wasn’t totally perfect news for shareholders. But Overactive has at least had a better start to 2021 with it’s $8.2 million lost. Last year it lost $16.3 million in the first months.
In praise of partnerships!
Partnership deals with the likes of Bud Light and TD Bank have helped move the needle in the right direction. Still, Overactive has reported a loss.
In a press release OverActive CEO Chris Overholt said that sponsorship partners have been a significant source of revenue growth.
“Our franchise agreements with global gaming publishers entitle us to a revenue share from each league, which we typically recognize in the back half of the year,” he said. “We expect solid revenue growth for the rest of the year, with a continued focus on adding globally recognized brands as long-term partners and competing at the highest level in our respective leagues.”
Overholt added: “Subsequent to the end of this quarter, we completed our public listing on the Toronto Venture Exchange and received over $23 million in aggregate gross proceeds from a brokered subscription receipt. This, alongside a $16.9 million non-brokered financing that we completed in late March and early April, which included investments from BCE Inc. (TSX:BCE) and the National Hockey League’s Montreal Canadiens, gives us a strong balance sheet to pursue our growth strategy. We are also making important strides on our plan to build the premier sports and entertainment venue in North America, offering state-of-the-art technology and one of the most unique fan experiences in the world.”