Overactive Media (OAM) Q3 2024 earnings summary

Executive summary

• Achieved 49% year-to-date revenue growth to $17.2M and positive net income of $239,000 for the nine months ended September 30, 2024, compared to a net loss of $11.2M last year.

• Strategic acquisitions of Riders and KOI, renegotiated league agreements, and entry into VALORANT EMEA ecosystem expanded presence in Europe and Latin America, enhancing brand value and fan engagement.

• Restructured league agreements eliminated over CAD 37 million in liabilities and CAD 2 million in future franchise obligations, securing full franchise ownership and reducing risk.

• Secured new and renewed partnerships with global brands including Pepsi, AMD, Telefónica, and Bell, reinforcing market influence and industry leadership.

Financial highlights

• Q3 2024 total revenue was $6.8M (CAD 6.9M), up 14% year-over-year; normalized revenue rose 72%.

• Year-to-date total revenue reached $17.2M, a 49% increase; normalized revenue up 59%.

• Adjusted gross profit for Q3 was $5.1M with a 74% margin; normalized adjusted gross profit improved from $2.8M to $5.1M.

• Operating costs for Q3 were $7.6M, up 42% year-over-year, mainly due to integration and expansion.

• Adjusted EBITDA for Q3 was break-even; normalized basis improved from a $1.2M loss to a $4,000 gain.

• Cash and equivalents at quarter-end were $8.9M; net working capital improved to $9.4M, up 321% year-over-year.

• Net income for nine months was $239,000 versus $11.2M loss last year.

Outlook and guidance

• Focus remains on leveraging scalable revenue models, operational agility, and innovation to drive sustainable, profitable growth with a debt-free balance sheet and strong global partnerships.

• New long-term Riot Games agreement eliminates future franchise obligations, enhancing future cash flows and revenue opportunities.