The gaming industry behemoth Golden Matrix has announced a robust start to the fiscal year, marking the period up to January 31, 2024, with an impressive revenue uptick of 9.3% over the same quarter from the previous year. Amidst the highs and lows, the online gaming and eSports technology company unveiled that its operational cash flow has remained positive for an admirable ninth consecutive quarter, underpinning a steady financial undercurrent.
Despite the veneer of success painted by record revenues, it’s notable that Golden Matrix faced a net loss for the full year of 2023. This backdrop makes the recent financial outcomes particularly significant, serving as a testament to the company’s resilience and strategic acumen.
Brian Goodman, Golden Matrix CEO, vocally expressed his elation, declaring himself “exceptionally pleased” with the Q1 results. Goodman’s enthusiasm wasn’t merely for the revenue figures but encompassed EBITDA growth as well, a crucial indicator of the company’s operational performance. “We achieved positive GAAP earnings and adjusted EBITDA of almost $1.2m,” relayed Goodman, further highlighting record-breaking milestones for the quarter encompassing revenue, total assets, shareholder equity, and cash-on-hand.
Golden Matrix appears to be in fine fettle, primed for progressive expansion within its B2B and B2C divisions, reinforcing its market position and potential for future profitability.
Strategic corporate movements have also been a focal point for the company, with reference to the pending acquisition of gambling entity MeridianBet—a deal poised to redefine Golden Matrix’s market footprint. The acquisition, brokered in January 2023 at an approximated $300.0m valuation, experienced a series of amendments nudging the closure initially beyond the first half of 2023 and finally into the first quarter of 2024.
The prolonged anticipation, as Goodman asserts, hasn’t dampened progress. A significant shareholder meeting is slotted for March 19, a vital step potentially heralding the partnership between Golden Matrix and MeridianBet. The CEO’s remarks resonated with optimism, anticipating that the merger would bolster both top-line growth and profitability by amalgamating two formidable business forces.
The first quarter yielded notable benchmarks with a major share of revenue, amounting to $7.2m, pouring in from business-to-consumer (B2C) dealings, represented by gaming brands RKings and Mexplay within Mexican markets. Meanwhile, the business-to-business (B2B) realm also showcased robust performance, generating $4.6m in revenue while supporting an extensive network of 808 unique casino operations with a cumulative registered user base totaling 8.3 million.
Despite these gains, expenditure remained a concern with costs of goods sold escalating 2.4% to $8.5m and total operating expenses climbing 10.7% to $3.1m. However, additional income of $57,481 and a resultant pre-tax profit of $336,685 painted a brighter picture when contrasted with a loss of $297,835 from the preceding year.
Golden Matrix emerged from the quarter with a net profit of $272,396—flipping the script from a net loss of $291,262 in Q1 of 2023—after factoring in taxes and a favorable foreign currency translation adjustment. Not to be overshadowed, adjusted EBITDA saw a remarkable 33.8% increase to $1.2m.
Transcending the shadow of past financial blemishes, Golden Matrix’s Q1 performance embodies a story of tenacity and prospective growth, pivoting from a phase of loss to one showcasing the vigor and vitality of its strategic and operational endeavors. As Goodman enthusiastically concluded, the first quarter has set the company on a promising trajectory for the fiscal year ahead.
