In a recent projection, GMGI has generated a buzz in the financial community with its announcement of expected revenues for the fiscal year ending October 31st. The company has forecasted that its revenue will likely surpass the $44.0 million mark, amounting to approximately a 22.2% increase from the previous year’s $36.0 million. If these estimates hold true, GMGI will have established a new benchmark for annual revenue performance.
The impetus behind this significant upsurge appears to be the company’s remarkable results in the fourth fiscal quarter, where revenue is poised to set a record high of $11.7 million. This milestone serves as a testament to the company’s robust financial health and operational efficiency. Adding to an already impressive financial status, GMGI also reported a 14% increase in cash-on-hand, thereby reaffirming its position as a company with positive cash flow.
While the comprehensive FY23 report is slated for release at the end of January 2024, the company’s chief executive officer, Brian Goodman, has provided insights hinting at an “acceleration of growth” throughout the fiscal period. Goodman’s comments echo an immense satisfaction with the progress GMGI has made over the past twelve months. He attributes this success to the strong performance of their core B2B platform, which continues to gain traction across operators in the Asia Pacific region.
Goodman also credited the company’s enhanced profitability to its burgeoning B2C segment efforts. One significant contributor to this success has been the UK-based RKings Competitions Ltd. Additionally, the launch and operation of MEXPLAY, a B2C Mexican casino, in the latter half of the year resulted in quarter-on-quarter growth in customer deposits and player participation, further underpinning the company’s successful expansion strategy.
In tandem with its financial achievements, GMGI has shared updates concerning its acquisition maneuvers, notably the MeridianBet Group deal. Initially agreed upon in January in a deal approximating $300 million, adjustments to the agreement were made by July, with aspirations to finalize the acquisition before the fourth quarter’s end. GMGI conveyed that the preliminary proxy statement pertinent to the acquisition is filed with the Securities and Exchange Commission (SEC). According to Goodman, this step draws GMGI ever closer to completing this strategic transaction.
Goodman expressed enthusiasm over the prospective closing of the acquisition, heralding it as a pivotal move that will render the emerging enterprise a formidable competitor on the global gaming stage. With the potential to offer an array of casino games, sports betting options, and tournament competitions across diverse jurisdictions, GMGI is poised for continued growth.
This acquisition marks a continued effort by GMGI to broaden its portfolio and comes on the heels of last year’s pivotal move where GMGI assumed full ownership of RKings after initially procuring a majority stake in November 2021. RKings, a dominant force in the B2B sector, accompanied by Mexplay in the B2C division, has been instrumental in driving GMGI’s revenue growth. For example, in the third quarter, RKings contributed $3.7 million to GMGI’s revenue while Mexplay contributed $7.6 million.
The positive projections and strategic acquisitions paint a promising picture for GMGI’s future. With solid growth trajectories, increased profitability, and promising opportunities on the horizon, GMGI’s preliminary fiscal report signals a company confidently stepping into a new era of success and solidifying its standing in the global gaming marketplace.
