GMGI expects revenue to hit record levels in FY23
In a preliminary results announcement, GMGI said revenue for the 12 months to 31 October will likely exceed $44.0m (£35.1m/€40.3m). This would place revenue approximately 22.2% ahead of $36.0m in fiscal 2022 and be a new yearly record for GMGI.
The business said expected record figures were helped by a strong performance during the fourth quarter. Revenue in fiscal Q4 is set to reach an all-time high of $11.7m.
Other key figures noted at this stage include cash-on-hand increasing 14%m with GMGI still generating positive cash flow.
GMGI is not due to file its full FY23 results until the end of January 2024. However, CEO Brian Goodman said the preliminary figures suggest an “acceleration of growth” for GMGI over the fiscal year.
“We are extremely pleased with the consistent progress made during this past year,” Goodman said. “Our core B2B platform for operators throughout the Asia Pacific region remains strong.
“We have benefitted from an acceleration of growth, with greater profitability, in the company’s B2C segment, UK-based RKings Competitions Ltd. Also, our B2C Mexican casino, Mexplay, was launched and operating in the second half of the year and showed quarter-on-quarter improvements in customer deposits and player participation.”
MeridianBet acquisition on the horizon for GMGI
GMGI used the preliminary results posting to also update the market on its acquisition of MeridianBet Group.
In January, GMGI struck a deal worth approximately $300m to purchase MeridianBet. Terms were amended in July, with GMGI hoping to complete the deal before the end of Q4.
Setting out its current position, GMGI said the preliminary proxy statement related to the acquisition has been filed with the Securities and Exchange Commission (SEC). Goodman said this takes it a step closer to completing the deal.
“We look forward to the closing of this strategic acquisition,” Goodman said. “We believe the combined enterprise will be a highly competitive participant in gaming markets worldwide, offering casino games, sports betting and tournament competitions in multiple jurisdictions.”
The deal would mark the latest acquisition by GMGI as it seeks to expand its offering. One year ago, GMGI took full ownership of RKings, having initially purchased a majority holding in November 2021.
GMGI has highlighted RKings as one of the drivers of growth in several quarters this year. This included in Q3, when revenue contribution from RKings, now established as GMGI’s B2B segment, was $3.7m. The contribution from its B2C segment Mexplay reached $7.6m during the same quarter.