Q1 stock-based compensation pushes Golden Matrix into red

The business reported $10.8m in revenue for the quarter, a 21.4% increase from the $8.9m the company attained in the first quarter of 2022. Golden Matrix hailed what it described as continued growth despite uncertain macroeconomic conditions.

“Despite a challenging economic climate worldwide, we are pleased that our B2B and B2C segments continue to grow and gain traction in their respective markets,” said Golden Matrix CEO Anthony Brian Goodman.

Goodman also spoke of the company’s expansion plans for the year ahead in both the organic and inorganic segments. He also outlined the process of how the $300m acquisition would unfold in the next few months.   

“We are making significant progress in preparing to enter new geographic markets through MexPlay, our recently formed B2C casino platform in Mexico, and through the anticipated acquisition of the MeridianBet Group and its related companies which is expected to be completed, during the first half of this year, subject to the completion of certain conditions to closing, including funding and shareholder approval,” he said.

“The MeridianBet acquisition is expected to position GMGI as a profitable worldwide gaming company with significant growth prospects, including the potential entry into regulated North American markets, subject to applicable rules and regulations.”

Quarterly results

From the company’s revenue, it reported adjusted earnings before interest, tax, depreciation or amortisation of $890,000, a 22.1% rise from the $729,000 the organisation announced in the 2022 period.

However, the company’s costs rose 71% from $1.62m to $2.77m. The business said that $961,000 of this total is a result of stock-based compensation. The company did not report the amount of stock-based compensation that made up the organisation’s costs in the previous period, nor did it break down the costs beyond the parent company’s and its B2C subsidiary making like-for-like comparisons difficult.

The business has $15.4m cash on hand and assets of $34.4m as of 31 January 2023. In the company’s traditional B2B vertical, it reported 710 operators using its systems serving 7.2 million total end users. Golden Matrix’s wholly-owned B2C subsidiary RKingsCompetitions Ltd now has 289,000 registered users on its platform.

In November, the company exercised its option to acquire the remaining 20% interest in the UK-based prize draw brand.