OverActive Media Corp.

Good day, everyone, and welcome to Overactive Media's first quarter conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow management's remarks. This conference call is being recorded, and a replay of today's call will be available on the Investor Relations section of Overactive Media's website. It will remain posted there for the next 30 days. I will now hand the call over to Babik Pedram, Investor Relations for Overactive Media, for introductions and reading of the safe harbor statement. Please go ahead, sir.

Thank you very much, and good morning, everyone. Welcome to Overactive Media's first quarter 2024 earnings conference call. A copy of the company's earnings press release is available on the investor relations section of our website at overactivemedia.com. With us on today's call are Adam Adamu, Chief Executive Officer, and Rikesh Shah, Chief Financial Officer. Today, we'll review the highlights and financial results for the first quarter of 2024 and recent developments. Unless otherwise specified, all amounts mentioned on today's call are in Canadian dollars. Before we begin, I will read our cautionary notes regarding forward-looking information. Certain information to be discussed during this call contains forward-looking statements within the meaning of applicable security laws, including, among others, statements concerning the company's 2024 objectives, the company's strategy to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management and are subject to several significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Also, our commentary today will include adjusted financial measures, which are non-GAAP measures. These should be considered a supplement, not as a substitute for GAAP financial measures. Reconciliations between the two can be found in our MD&A, which is available on cedarplus.ca and our website. At this time, it is my pleasure to introduce Mr. Adam Adamu, Chief Executive Officer of Overactive Media. Adam, please go ahead.

Good morning and buenos tardes, everyone. Thank you for joining today's call. Today has begun with tremendous, sorry, 2024 has begun with tremendous momentum. And I want to start by expressing my sincere gratitude to our business and performance teams for their dedication and commitment. Additionally, a heartfelt thanks to our fans and brand partners for an incredible start to the year. We have more fans, more partners, and more engagement across the board and at the highest levels. The first quarter of 2024 continues to highlight the transformation of Overactive Media. We achieved record revenues of 3.7 million, a 126% increase compared to the same period last year. This growth is due to several key developments. We completed the acquisitions of Koi and Movistar Riders on March 1st, 2024. These acquisitions have expanded our footprint in Spain, EU, and Latin America. The integration of these teams has already contributed positively to our revenue and adjusted EBITDA. I note that only one month of consolidated post-acquisition results are reflected in our numbers for the quarter, alongside fulsome costing of various acquisition-related and one-time costs. The Valorant Champions Tournament EMEA team, now operating as Movistar Koi, began contributing to our revenue following transfer approval from Rye Games. This addition has also enhanced our presence in the competitive Valorant ecosystem. We also changed the revenue recognition of our league revenue to a straight line basis, which added $900,000 in the first quarter, reflecting a more accurate representation of our ongoing revenue stream. This change was made as a result of greater certainty of our share of league revenues under the new league partnership model. We also made several significant strides in the first quarter. As part of our acquisition strategy, we welcomed Gabrielle Sands de Beruaga and Gerard Piquet to our board of directors. Their expertise and leadership will be invaluable as we continue to grow our global presence. Our Mad Lions Koi League of Legends EMEA Championship match on February 18th became the most watched LEC match since summer 2021, with a peak viewership of 800,816 viewers. This highlights our strong engagement and growing fan base. We secured the largest financial partnership in our history with Telefonica, extending their support for Movistar riders for three years. Additionally, in North America, we renewed our relationship with Scuf Gaming and signed a new partnership with the emerging lifestyle and gaming brand, Blacklight. Our teams performed exceptionally well. with the Overwatch Champion Series team emerging as champions of Stage 1 and Stage 2 in North America and qualifying for the first Overwatch major in Dallas. Toronto Ultra, our College Duty League team, won CDL Major 1 in Boston, and our movie star Koi's Counter-Strike 2 team qualified for the Copenhagen Major. In League of Legends, Mad Lions Koi qualified for the Grand Finals of the Winter Split in the LEC to record viewership. Looking ahead, we're focused on several strategic priorities to drive our long-term growth. First, the long-term agreement with the Call of Duty League, effective from April 16, 2024, eliminates over $35 million in outstanding entry fees and adds a termination payment of approximately $2.8 million. This agreement strengthens our financial position and opens new revenue streams. including direct team participation in digital in-game merchandise and opportunities from licensed third-party tournaments. These changes will be reflected in our results for the second quarter, ending June 2024. We continue to streamline our operations, aiming to bring our costs in line with our objectives for revenue growth and profitability. This disciplined approach will ensure that we continue the path to profitability while maintaining our competitive edge. Third, global expansion. The integration of Koi and Movistar riders demonstrates our commitment to expanding our global footprint. We are leveraging their established presence to enhance our brand and engage more deeply with our audiences across multiple regions. Our focus in 2024 will be on growing our revenues and our brands in EMEA and the Americas. And we are currently reviewing various opportunities for expansion of teams and regions. Finally, We are in advanced discussions with Riot Games to finalize a new model for our League of Legends esports ecosystem. This model aims to ensure more predictable revenue streams through enhanced partnerships and innovative in-game digital sales strategies, aligning with our vision for a robust and dynamic esports ecosystem. We expect to have an agreement with Riot Games on this front by the end of 2024. The first quarter of 2024 has been a period of significant progress and achievement for our company. We are well positioned to capitalize on our recent successes and continue driving value for our shareholders and partners. We have a strong balance sheet, strong growth, costs are in line with expectations, and I'm confident in our ability to execute our strategic growth plan and achieve our long-term objectives. Thank you once again to our dedicated team, partners, and shareholders for your continued support. I will now turn the call over to Rakesh Shah, our CFO, to provide more detailed insights into our financial performance.