OverActive Media, the parent company of LEC team MAD Lions, as well as Toronto Ultra and Toronto Defiant, published their 2022 financial results, recording a net loss.
Image credits | OverActive Media Group
Overactive Media records financial loss in 2022
Audited by KPMG, The company’s net loss for 2022 is CAD$36.925m (~€24.740m), going up from the previous year’s figures of CAD$19.4m (~€12.998). It’s a significant increase, which was attributed to the investments made in rosters, staff, and products for future success.
The net loss also included a non-cash impairment charge of CAD$35.069m (~€23.496m), which is usually used by businesses to write off assets’ losses in value.
Despite the losses, the company did maintain similar revenues in 2022 compared to 2021, around CAD$14.2m (~€9.514m). It highlighted that 2022’s business operations revenues increased by 23% thanks to more partnerships and events but it was offset by team operations revenue, with decreasing prize money income.
OverActive Media’s carrying amount of debt as of Dec. 31st, 2022 is $CAD391k (~€261.97), going down from 2021’s $CAD536k (~€359.12). According to the audited report, there are three principal payments due on the long-term debt in each of the following fiscal years, for a total undiscounted face value of the loan of $CAD423k (~€283.41):
- 2023 – $CAD188k (~€125.96)
- 2024 – $CAD188k (~€125.96)
- 2025 – $CAD47k (~€31.49)
Other notable financial information on the company
Operating costs have gone up by more than CAD$3m compared to 2021. The increases were mainly caused by higher live event expenses (more than tripled), as well as increasing selling, general and administrative costs (gone up by nearly CAD$1.2m).
At the time of this writing, the company’s stock is currently sitting at CAD$0.15 on the Toronto Stock Exchange. The loss per share for 2022 was CAD$0.46, decreasing once again after 2021 (CAD$0.46). The weighted average number of shares outstanding is 80,308.
Whilst not included in OverActive Media’s 2022 financial results, the company stated in its press release (first reported by Esports Insider) that it has received league franchise fee deferrals totaling just over $10m. This is expected to be spread out between 12 to 24 months.
Even though the results seem negative, the company is looking to overturn them going into 2023 thanks to significant partner renewals as well as the launch of live esports events in Toronto.
Note: exchange rate used at the writing of this is $CAD 1 = €0.67.
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