In a year marked by milestones and challenges, Golden Matrix Group (GMGI) has reported record revenue for the year 2023, aligning with the company’s forecast shared towards the end of the preceding year. According to GMGI, a notable 22.8% increase in revenue over the previous year was due to the diversified nature of its business portfolio. This significant growth highlights the company’s successful expansion across both its business to business (B2B) and business to consumer (B2C) segments in rapidly growing online gaming markets worldwide.
Despite the uptick in revenue, a contrasting financial picture emerged from Golden Matrix Group’s bottom line as the company’s net loss widened substantially. The increased net loss, from $454,065 in 2022 to a more pronounced $1.0 million this past year, is mainly attributed to non-cash expenses, particularly a $2.5 million charge for stock-based compensation, a rise in tax burdens, and expanded investments in their Mexplay operations as well as consulting fees.
CEO Brian Goodman, in his statement, addressed the financial results with a positive perspective. Goodman remarked on the continuous revenue growth, which has been consistently climbing for four consecutive years, alongside increases in shareholders’ equity. He expressed optimism about GMGI’s potential for further growth moving into 2024. Goodman attributed the company’s recent financial year success to the robust and diversified business portfolio which spans across B2B and B2C sectors within some of the fastest-growing online gaming markets around the globe.
GMGI’s investment in its B2B and B2C platforms over the past year has been instrumental in maintaining a competitive edge and driving strong revenue growth. Goodman touted the state-of-the-art gaming systems and high-quality gaming content as pivotal in drawing and retaining millions of gaming participants.
An in-depth look at the financials of GMGI shows the company earned $15.6 million from its B2B segment and $28.5 million from the B2C side for the 12-month period ending December 31, 2023. The B2B segment of GMGI has engaged with 785 gaming operators and reports having 8.2 million customers. From the user perspective, the B2C segment, which features the RKings and Mexplay brands, boasts over 325,000 and 61,000 registered users, respectively.
Cost-related analysis reveals that the cost of goods sold escalated 27.5% to $34.3 million, with total operating expenses leaping 15.6% to $10.4 million. Meanwhile, GMGI managed to recoup $36,803 in other income, largely coming from interest income throughout the year. Precisely, the pre-tax loss amounted to $489,444 compared to a pre-tax profit of $463,077 the previous year, and income tax expenses summed up to $683,306, resulting in a net loss of $1.2 million. However, this loss was somewhat mitigated by gains of $132,588 in positive foreign currency translation, netting a comprehensive loss attributable to GMGI of $1.0 million versus the $454,065 figure in 2022.
Amid these financial results, Goodman reiterated his confidence in the resilience, competitiveness, and diversification of GMGI’s portfolio and intellectual property, as well as the robust fundamentals of the markets in which they operate.
Key to its strategy of expanding its global footprint, GMGI also provided updates on its pending acquisition of MeridianBet. Initially agreed upon in January 2023 in a deal valued at approximately $300 million, the acquisition was expected to be finalized in the first half of 2023. However, subsequent amendments pushed the closing date back to the fourth quarter of the year, with further discussions in October leading to a potential extension of the closing date into the first quarter of 2024. GMGI aims to complete the acquisition before the end of Q1 2024, with Goodman indicating that this acquisition is poised to significantly increase GMGI’s global presence, as well as its revenues and profitability.
Goodman concluded by emphasizing the transformative nature of the deal, which will introduce numerous product offerings across various regions, potentially positioning the combined entity to tap into lucrative online gambling markets in both the United States and Canada.
