- As OverActive Media went public this summer, it recently disclosed its financial performance
- The ownership group’s income has increased substantially, but the group still faces high net losses
- However, the losses are twice as low compared to 2020, proving that the company is on the right track
OverActive Media’s performance is increasing with a higher income and fewer net losses compared to 2020.
OverActive’s Investments Are Still Developing
OverActive Media, an esports ownership group of Canadian origin, is still struggling with some heavy net losses. According to a recent release by the company itself, it has marked a total net loss of $8,210,000 Canadian dollars (around $6,5 million USD) for the first half of 2021.
The reasons for the losses are OverActrive Media’s daring expensive esports investments that are yet to grow enough to pay for themselves. These include the esports ownership group’s slots in some of the highest-esteemed esports franchises: the Call of Duty League (Toronto Ultra), the League of Legends European Championship (MAD Lions), and the Overwatch League (Toronto Defiant).
Holding all these slots costs millions of dollars and has additional costs to maintain. Although all of the brands have experienced growth, they are still far from returning their initial investment.
Financial Losses Continue Despite an Increase in Revenue
OverActive Media went public on the Toronto Stock Exchange. Because of this, it recently shared details of how it has been faring financially.
The esports ownership group revealed that their revenue for the first half of 2021 sat at around $3,402,000 Canadian dollars (around $2,7 million USD). Compared to the same period of 2020, this marks a significant 56% increase. Despite the increase in revenue, OverActive’s losses are still higher – $8,210,000 CAD ($6,5 million USD), as mentioned before.
Yet, although this may seem quite unfortunate, it is actually good progress for OverActive Media. Back in 2020, the ownership group had $16 million CAD ($12,6 million USD) losses – about twice as much as this year's.
The group has also further reinforced its positions by signing some important partnership deals that will further boost its future performance. Some of those valuable partners include Bud Light, Crave Meals, and TD Bank. The group also came into possession of Montreal Canadiens soon after it went public.
OverActive Media’s CEO, Chris Overholt, is quite optimistic for the future of the ownership group. He has been liking the number comparisons between 2020 and 2021 and is sure that OverActive is definitely moving in the right direction. Overhold appreciates the help of the group’s partners and hopes that OverActive Media’s journey to fans’ hearts is just beginning.
With all said and done, the tendency is that OverActive Media is picking up pace but is not quite there yet.