OverActive Media, the holding company behind MAD Lions, Toronto Ultra and Toronto Defiant, has announced financial reports for both the fourth quarter of 2021 and its entire fiscal year.
The company has recorded increased revenue, but also increased net loss, compared to 2020.
Image credit: OverActive Media Group
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OverActive Media’s net loss in 2021 climbed to CAD $19.4m (£11.8m), compared to CAD $6.3m (£3.8m) for 2020. According to the company, the main reason for the accumulated loss is due to ‘modifications’ of certain payments related to ‘franchise obligations’.
Chris Overholt, President and CEO of OverActive Media, commented: “We are focused on generating high quality, long term and recurring revenue streams and we are succeeding. Furthermore, our business model offers a tremendous amount of operating leverage when delivered at scale.”
On the positive side, OverActive has generated more revenue than the previous year. The company recorded CAD$ 14.2m (£8.6m) in revenue in 2021, compared to CAD $8.4m (£5.1m) of revenue in 2020. OverActive Media notes the increase in partnership revenue as the main reason for this increase.
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OverActive Media has secured a number of partnerships in 2021 and has plans to build a dedicated esports venue in Toronto, for which the company received permission in late 2021. The company also partnered with esports organisation Team Singularity and streetwear brand Nobis.
The company also recorded an increase in revenue of 49 percent in the fourth quarter of 2021, compared to the same period in the year before.
Esports Insider says: OverActive Media has a number of assets under its umbrella and the recorded loss for 2021 is in line with what other esports holding companies are recording. It remains to be seen how will OverActive performs in 2022, with the company continually investing in its esports division and upcoming projects such as the Toronto venue.