OverActive Media Reports Record Q4 and FY 2024 Results: Q4 Revenue Up 134%, FY Revenue Up 72%, $311,000 of Comprehensive Income

CNW Group

Thu, Apr 24, 2025, 8:39 PM 12 min read

$CAD (000's)	Three months ended December 31, 2024	Three months ended December 31, 2023	Variance (%)	Twelve months ended December 31, 2024	Twelve months ended December 31, 2023	Variance (%)
$CAD (000's)	Three months ended December 31, 2024	Three months ended December 31, 2023	Variance (%)	Twelve months ended December 31, 2024	Twelve months ended December 31, 2023	Variance (%)
Revenue	$9,852	$4,212	134 %	$27,008	$15,704	72 %
Gross Profit	$5,323	$3,361	58 %	$16,811	$10,384	62 %
Gross Margin	54 %	80 %	-32 %	62 %	66 %	-6 %
Operating Expenses	$6,646	$4,306	54 %	$23,394	$17,096	37 %
Adjusted EBITDAⁱ	($554)	($699)	21 %	($3,593)	($6,207)	42 %
Comprehensive Income (Loss)	($1,301)	($768)	-69 %	$311	($12,239)	103 %
Net Working Capital	$6,562	$8,602	-24 %	$6,562	$8,602	-24 %
Cash & Equivalents	$6,849	$13,933	-51 %	$6,849	$13,933	-51 %

^{(i) Adjusted EBITDA is a non-IFRS measures. Refer to "Non-IFRS Measures" at the end of this press release.}

"2024 was a year of real progress for OverActive Media," said Adam Adamou, CEO and Co-Founder of OverActive Media. "We completed two major acquisitions, expanded into new games and regions, and grew our revenue by 72 percent. Managing that kind of growth while integrating teams and operating across multiple markets required focus, coordination, and an incredible effort from our entire organization."

Adamou continued, "We're proud of what we've built, but we know we're not finished. Our priority in 2025 is to continue growing responsibly, improving margins, staying disciplined, and making sure that every step we take adds lasting value. We're entering this next chapter with momentum, a strong foundation, and a clear plan to keep building a great business in a growing global industry."

Q4 2024 Financial Highlights

Revenue totaled $9.9 million, up 134% year-over-year, compared to $4.2 million in the same period in 2023. The increase was primarily driven by higher league share, expanded partnerships, and influencer agency revenue from the KOI and Riders acquisitions.
Gross profit increased by $1.9 million to $5.3 million with a gross margin of 54%, compared to $3.4 million and 80% in 2023. Margins were impacted by the newly integrated influencer business.
Operating costs increased by 54%, totaling $6.6 million, compared to $4.3 million in the same period in 2023. The increase was due to additional headcount, content production, and agency infrastructure tied to strategic expansion.
Adjusted EBITDA improved to a loss of $554,000, compared to a loss of $699,000 in Q4 2023, reflecting positive impact of high-margin digital sales and improved operational leverage.
Comprehensive loss for the quarter was $1.3 million, compared to a loss of $768,000 in Q4 2023, primarily driven by foreign currency translation losses.
Net working capital (current assets less current liabilities) was $6.6 million. Cash and cash equivalents were $6.8 million, reflecting capital deployment into integration and growth. These amounts are net of an additional $782,000 invested in the venue project in Toronto. Total investments in the venue project to date are $2.1 million.

Full Year 2024 Financial Highlights

Revenue reached $27.0 million, up 72%, compared to $15.7 million in FY 2023, driven by acquisitions and growth across team operations, digital merchandise sales (MTX), brand partnerships, influencer business and live events – broadening OverActive's revenue mix and geographic reach.
Gross profit totaled $16.8 million, a 62% increase. Margin declined to 62% from 66%, due to changes in product mix, including lower-margin revenue from the influencer agency and live events.
Operating costs were $23.4 million, up 37%, driven by investments in talent, systems, and platform efficiency, along with a $2.3 million one-time restructuring and business development expense tied to acquisitions.
Adjusted EBITDA loss improved by 42% to $3.6 million, compared to a loss of $6.2 million in 2023.
Comprehensive income of $311,000, compared to a loss of $12.2 million in FY 2023, reflecting a 103% year-over-year improvement, driven by strong revenue growth, disciplined cost management, an $11.5 million gain from the elimination of franchise liabilities, and favorable foreign currency translation.

OverActive Media – Major Accomplishments 2024 To-Date

Financial & Strategic Growth

72% year-over-year revenue growth, reaching a record $27.0 million.
Positive comprehensive income of $311,000, a 10% improvement from loss of $12.2 million in 2023.
42% improvement in adjusted EBITDA loss, driven by stronger revenue and improved operating efficiency.
$11.5 million gain from the elimination of long-term franchise obligations, significantly strengthening the Company's balance sheet.

Mergers & Acquisitions

Acquired KOI and Movistar Riders, expanding the Company's footprint across Europe and Latin America and introducing new business lines including influencer agency operations.
OverActive was awarded a VALORANT Champions Tour EMEA (VCT EMEA) partnership by Riot Games.

Global Expansion

Entered Latin America via Movistar KOI's participation in the Free Fire League in Mexico, strengthening the Company's multiyear partnership with Telefónica and presence in Latin America.
Invited into the inaugural Esports World Cup Foundation Partner Program 2024 and for the 2025 season.
Announced expansion into China, world's largest and fastest-growing esports market, with Movistar KOI launching localized content on Weibo and Bilibili.

Competitive Success

MAD Lions KOI qualified for League of Legends World Championships for the sixth consecutive year, reaching 2.5M peak concurrent viewers.
Toronto Ultra won CDL Major I, continuing its run as one of the top Call of Duty teams in the world.
Toronto Defiant won back-to-back-to-back-to-back North American Championships in the inaugural Overwatch World Championship Series.
OverActive Media finished in 11^th place globally in the inaugural Esports World Cup.

Live Events & Viewership

Hosted Call of Duty Major III in Toronto from May 16 to May 19, 2024, drawing an average of 116,400 viewers across 30 hours of airtime and totaling 3.5 million hours watch.
Hosted the inaugural KOIKON in Madrid on December 6, 2024, drawing over 3,000 in-person attendees and more than 1 million livestream viewers.
Hosted CDL Major I in Madrid with 12,000+ fans. This was the first CDL event hosted in Europe in five years and was produced in tandem as a joint Toronto Ultra and Movistar KOI event.
Announced that the first ever LEC Roadtrip will be hosted by OverActive Media's Movistar KOI at the Madrid Arena, with an expected 16,000 fans attending over two days, April 26 and 27.
Announced as the host of the 2025 Call of Duty League® Championship Weekend powered by Bell in Ontario from June 26-29, expected to draw over 20,000 fans.

Commercial & Brand Partnerships

Renewed and expanded partnerships with Telefónica, AMD, Bell, SCUF Gaming.
Signed new partnerships with Monster Energy, CUPRA, and Blacklyte.
Announced LEC naming rights deal with Telefónica, the first of its kind in the LEC.

Sustainability & ESG

Partnered with Ecoembes to support sustainability initiatives and join the United Nations Sports for Climate Action Framework.

Subsequent to the Quarter

On April 19, 2025, Stewart Johnston stepped down from OverActive Media's Board of Directors following his departure from Bell to pursue another opportunity. The Company extends its gratitude to Mr. Johnston for his valuable service and significant contributions.
OverActive Media has retained Red Cloud Securities Inc. to provide market-making services in accordance with TSX Venture Exchange policies. The agreement commenced on April 15, 2025. Red Cloud will receive a monthly fee of $4,500 CAD for its services, which are intended to enhance the liquidity and trading activity of OverActive Media's common shares. The engagement is open-ended and may be terminated by either party with 30 days' written notice. No performance-based compensation or securities have been granted in connection with this arrangement.

Conference Call Details

The Company will conduct a conference call on Friday, April 25, 2025, at 9:00 a.m. ET.

To access the call, register at https://emportal.ink/3XSQ1QW or dial 1-888-699-1199 (North America) or 416-945-7677 (International).

A replay will be available until May 2, 2025, at 1-888-660-6345 or 289-819-1450 using entry code 23519#.

A webcast will also be available at https://app.webinar.net/2XjxkN4wv8K and archived for three months.

ABOUT OVERACTIVE MEDIA

OverActive Media Corp. (TSXV: OAM) (OTC:OAMCF) is headquartered in Toronto, Ontario, with operations in Madrid, Spain and Berlin, Germany, is a premier global esports and entertainment company for today's generation of fan. OverActive owns team franchises in professional esports leagues, including the Call of Duty League, operating as the Toronto Ultra, the League of Legends EMEA Championship (LEC), operating as Movistar KOI, the VALORANT Champions League (VCT) EMEA, operating as Movistar KOI and other professional esports leagues and competitions.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of OverActive with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding the anticipated financial and operating results of OverActive in the future.

Investors are cautioned that forward-looking statements are not based on historical facts but instead OverActive management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although OverActive believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the OverActive. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements include the following: the potential impact of OverActive's qualifying transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; the risks and uncertainties associated with foreign markets; the ability of the Company to continue to execute on its existing partnerships and business strategy; the ability of the MAD Lions and Call of Duty Leagues to maintain viewership; the successful completion of the Company's new venue; and other risk factors set out in OverActive's most recent annual information form and its other filings with Canadian securities regulators, copies of which may be found under OverActive's profile at www.sedarplus.ca. These forward-looking statements may be affected by risks and uncertainties in the business of OverActive and general market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although OverActive has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. OverActive does not intend and do not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.

NON-IFRS MEASURES

This press release includes references to Adjusted EBITDA. This non-IFRS financial measure is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. Our method of calculating this financial measure may differ from the methods used by other issuers and, accordingly, our definition of this non-IFRS financial measure may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.

Adjusted EBITDA is defined by the Company net income or loss before income taxes, finance costs, finance income, depreciation and amortization, decrease in net present value of franchise obligations, foreign exchange gains / loss, assistance payments from Franchise League and government assistance, restructuring and business development costs, impairment charges, and share-based compensation. We believe that Adjusted EBITDA is a useful measure of financial performance because it provides an indication of the Company's ability to capitalize on growth opportunities in a cost-effective manner, finance its ongoing operations and service its financial obligations. A reconciliation of Adjusted EBITDA to net income/loss may be found in the Company's Management's Discussion and Analysis for the three and 12-month periods ended December 31, 2024.

The following tables presents a reconciliation of net loss to adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023:

	Three months ended December 31,		Twelve months ended December 31,
	2024	2023	2024	2023
	$	$	$	$
Net income (loss) for the period	(868)	(1,349)	(629)	(12,519)
Income tax expense (recovery)	122	(668)	(212)	(520)
Depreciation	550	487	2,238	1,800
Amortization and impairment	325	240	1,069	399
Decrease in net present value of franchise obligations	(1,701)	(1,059)	(11,539)	(1,059)
Finance income	(32)	(32)	(254)	(214)
Finance costs	89	1,208	1,692	5,050
Foreign exchange (gain) loss	(7)	(91)	896	28
Share-based compensation	347	207	715	152
Restructuring and development costs	621	358	2,431	676
Adjusted EBITDA	(554)	(699)	(3,593)	(6,207)

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Overactive Media Corp.