Strong Acquisition-Led Growth Drives OAM to Record First Quarter TORONTO, May 27, 2024 /CNW/ - OverActive Media Corp. ("OverActive" or the "Company") (TSXV:OAM) (OTC:OAMCF), a global esports, and entertainment company for today's generation of fans, released its first quarter results for the three month period ended March 31, 2024. The Q1 2024 financials include the impact of one month of financial performance from the recent acquisitions of Movistar Riders and KOI, which closed on March 1, 2024. All amounts are in Canadian dollars ($). Q1 2024 Financial Highlights Revenue for the three months ended March 31, 2024 increased by over $2.0 million, or approximately 126%, reaching $3.7 million compared to the same period in the prior year. The revenue increase was related to several factors including: the acquisitions of Riders and KOI that closed on March 1, 2024; representing one month of combined financial results. a positive contribution from Movistar KOI, the VALORANT Champions Tournament EMEA team that was transferred to OAM in connection with the KOI acquisition; and a change in estimate to record league revenues on a straight-line basis as certain league revenues contain minimum guarantees that can be evenly recorded throughout the period rather than during discrete quarters. This had a positive $0.9 million impact in the first quarter. Operating costs for the three months ended March 31, 2024 amounted to $6.2 million, representing an increase of $0.9 million or approximately 16% compared to the same period in 2023. The increase is due to the expenses related to the acquisition of Movistar Riders and KOI, partially offset partially by lower costs in the core OAM business. Adjusted EBITDAi loss for the three months ended March 31, 2024 was $1.8 million, showing an improvement of approximately 51% compared to the adjusted EBITDA loss of $3.7 million for the same period in 2023. This improvement is due to the factors highlighted above. As at March 31, 2024 the Company had cash and cash equivalents of $10.1 million, compared with $13.9 million as at December 31, 2023. The decrease in cash reserves is a result of the negative EBITDA on the quarter alongside incremental operational costs related to the Movistar Riders and KOI. A significant factor in the Company's cash reduction during the quarter was a $1.9 million VAT payment related to the acquisition of KOI. The Company expects a VAT rebate for the total amount in fiscal 2024. Selected Q1 2024 Achievements The Company acquired esports organizations KOI and Movistar Riders, forming a global esports powerhouse. These acquisitions align with OverActive's expansion strategy in Spain, EMEA, and Latin America had an immediate and positive contribution to the Company's adjusted EBITDA in the first month of the quarter. OverActive welcomed Gabriel Saenz de Buruaga and Gerard Piqué to its board of directors as part of the acquisitions of Movistar Riders and KOI. OverActive received Riot Games' approval for the transfer of the VALORANT Champions Tour EMEA team participation agreement from KOI to OverActive Media. The MAD Lions KOI League of Legends EMEA Championship match on February 18th became the most-watched LEC match since summer 2021, with 830,816ii peak viewers. The Company entered the Overwatch Champions Series (OWCS) and emerged as the Champions of Stage 1 and Stage 2 in North America and qualified ...