OverActive Media Reports Revenue Growth for Q1 FY 2025

OverActive Media, the parent company of League of Legends team Movistar KOI, unveiled the financial results for the first quarter of 2025.

OverActive Media – Increasing Revenues and Lower Losses

According to the financial report, the company generated revenues amounting to $CAD 5.0 million (€3.2 million), marking a 37% YoY (year-on-year) growth. The revenue growth was driven by the full-quarter contribution of the KOI and Riders acquisition, as well as strong sponsorship and digital merchandise sales. The report added that the gains were partially offset by planned exits from esports titles that generated sticker sales the previous year.

“Q1 demonstrated the strength of our global model. We delivered 37 percent year-over-year revenue growth, reduced operating costs by 8 percent, and closed the quarter with nearly $8 million in cash and positive working capital. These results reflect the efficiency of our operating structure and the successful integration of KOI and Riders,” said Adam Adamou, CEO and Co-Founder of OverActive Media.

The gross profit was $2.6 million (€1.66 million, 52%), slightly decreasing from the $2.7 million (€1.72 million) in Q1 2024. The decline in margins was due to the changes in revenue composition, with larger shares coming from influencer operations and the removal of high-margin sticker revenue. The report also added that digital merchandise and league-share revenues were minimal in the quarter, and they are expected to increase in the second half of the year.

Reducing costs and expanding to explore new Opportunities

Despite a strong gross profit, the operating expenses, which amounted to $CAD 4.9 million (€3.13 million), still caused the Adjusted EBITDA to turn negative ($CAD 2.3 million, €1.47 million). In the report, however, the company stated that two extra months of KOI and Riders expenses were captured in the period, meaning that the operating expenses are theoretically lower.

The financial report also explained that Q1 is OverActive’s seasonal weakest period of the year, with EBITDA set to improve in the following periods as the goal is to reach profitability during the year. The Net working capital was $CAD 3.4 million (€2.17 million) at the end of the period, with Cash and cash equivalents totaling $CAD 7.9 million (€5.05 million).

“We have built a differentiated platform that combines ownership in the world’s top esports leagues and titles with a global fanbase of more than 100 million. Our direct digital channels give brand partners meaningful access to that audience, while high-margin digital merchandise and media opportunities drive strong monetization. The early success of our subscription-based Fénix Club, which exceeded internal expectations in its first month, is a testament to the loyalty and engagement we have built with fans. With greater predictability in our revenue streams, improving operating leverage, and disciplined cost control, we are well positioned to meet our 2025 growth and profitability targets,” Adamou added.

OverActive Media Key Financial Metrics for Q1 2025

• Revenue: $CAD 5.0 million (€3.2 million)
• Gross Profit: $CAD 2.6 million (€1.66 million)
• Operating Expenses: $CAD 4.9 million (€3.13 million)
• Gross Margin: 52%
• Adjusted EBITDA: $CAD 2.3 million (€1.47 million)
• Comprehensive loss: $CAD 2.0 million (€1.27 million)

Company’s major milestones in the period

The company has been pivoting towards live esports events, welcoming over 12,000 to the Madrid Arena in Spain for the Call of Duty League Major I. While not reflected in the first quarter, the same venue was utilized for the LEC Roadtrip, drawing 18,000 attendees, and further proving the impact the company’s ability to execute on large-scale events.

Additionally, OverActive Media has expanded its presence across the globe. The company entered Latin America through the Free Fire League in Mexico and extending its multiyear commercial partnership with Telefónica/Movistar Mexico in the mobile scene. Movistar KOI, instead, launched official social media channels on Weibo and BiliBili to tap into the Chinese esports market and unlock opportunities for digital fan engagement and sponsorship growth.

The company’s Call of Duty team, Toronto Ultra, also won the Esports Event of the Year and Esports Organization of the Year categories at the 2024 Canadian Game Awards and secured hosting rights for the 2025 Call of Duty League World Championship, which is set to take place in Ontario, Canada.

Post Quarter-End Developments