In a report published on the 10th of August, Toronto-based esports organisation, OverActive Media, declared a loss of $5.5m in H1 of 2022. This news comes just months after OverActive Media revealed a net loss of $15.4m through 2021. Despite the loss, OAM’s representatives seemed generally positive about the outlook of the firm. While this has been a relatively rocky year so far for OverActive Media, there are bright sparks on the horizon, according to the company’s leadership.
Following the publishing of the report detailing 2021’s financial loss, OAM announced the closure of its CSGO team, MAD Lions. While OAM still fields teams in the Call of Duty League and the Overwatch League, this was a blow to the firm’s diversification efforts.
In terms of a year-over-year figure, OverActive Media is on track to perform a little better than it did in 2021. However, the firm has seen a notable decline in team revenue that isn’t likely to recover before the end of the year, unless Toronto Defiant steps up and performs better in the Overwatch League. For esports organisations, a good portion of revenue comes from team winnings, but neither of OAM’s Toronto-based teams have or are ‘pulling their weight’ this year.
Outside of Toronto, OverActive also fields a team in the European LEC, MAD Lions. This isn’t an exceptionally high-performing team, and the last first-place finish for the squad was at the LEC 2021 Summer Playoffs in August of 2021.
For Toronto Ultra, the Call of Duty League team, 2022 was a relatively disappointing year. While the squad brought home a grand total of $220,000 in earnings, it was nothing compared to the top-tier teams like the LA Thieves, which secured almost $1.5m in winnings. Where the Call of Duty League is concerned, OverActive Media also stated that there were considerable expenses notched up by the firm hosting Major III in Toronto.
Despite the costs incurred, CEO of OverActive Media, Chris Overholt, spoke highly of the event:
Our expenses and net loss were higher in the current quarter, driven in part by our investment in hosting the first-ever Call of Duty League Major in Toronto in June. This event was a tremendous success for our fans, partners, and the city.
Par For The Course
At present, a global economic downturn is taking its toll on many companies in and around the esports industry. From an esports betting perspective, several key operators have stepped back from the space, and from an esports competition perspective, some organisations have begun ramping down their rosters. There’s something of a global effort to reduce spending wherever possible, and in recent weeks, organisations like 100 Thieves have even begun dismissing content creators from their ranks.
There are irons in the fire for OAM, such as the impending development of a $500m esports stadium in the heart of Toronto. While the project has gone a little quiet, the plans have been in the works for way more than a year, and construction is expected to be finished in 2025. As the world slowly recovers from the COVID-19 pandemic and more consumers return to in-person events, this advanced venue would be a seriously powerful arrow in OAM’s quiver.