Home > Finance > Full year results > Revenue reaches record $11.8m at Golden Matrix in Q1

Revenue reaches record $11.8m at Golden Matrix in Q1

| By Robert Fletcher
Golden Matrix Group (GMGI) posted $11.8m (£9.3m/€10.8m) in revenue during Q1, a new quarterly record for the operator, while it was also able to post a net profit.
Golden Matrix Q1

Revenue in the three months to 31 January 2024 was 9.3% higher than in Q1 of the previous year. Golden Matrix also said that its cash flow from operations was positive for the ninth consecutive quarter.

This will come as a boost to Golden Matrix which, despite record revenue, reported a net loss in its 2023 full year.

CEO Brian Goodman hailed the Q1 performance, saying he was “exceptionally pleased” with the figures. Aside from revenue growth, he picked out other key figures, including EBITDA growth.

“We achieved positive GAAP earnings and adjusted EBITDA of almost $1.2m,” Goodman said. “We set multiple records, delivering our highest ever quarterly results for revenue, total assets, shareholder equity and cash-on-hand.

“The company is well-positioned for continued growth within its B2B and B2C divisions.”

Update on MeridianBet acquisition 

Goodman also made reference to the pending acquisition of MeridianBet. Golden Matrix agreed to buy MeridianBet in January of 2023, in a deal worth approximately $300.0m.

Initially, Golden Matrix said the deal would close during H1 of 2023. However, Golden Matrix in July last year made several amendments to the deal, pushing the closing date back to Q4 of 2023.

Further amendments were made in October, pushing the closing date back again, this time to Q1 of 2024. Golden Matrix in January said this was still the case, but the deal is yet to go through. 

Goodman said the company is making “significant progress” on the acquisition. A special meeting is scheduled for 19 March, where Golden Matrix shareholders are scheduled to vote on the deal.

“We continue to make significant progress towards closing the pending MeridianBet acquisition,” Goodman said. “We look forward to working to boost top-line growth and profitability once these two world class businesses have been combined.”

Golden Matrix in the black despite higher costs

Taking a closer look at the figures for Q1, B2C operations accounted for $7.2m of all revenue. The company’s B2C operations comprise the RKings and Mexico-facing Mexplay brands.

As for B2B activity, revenue reached $4.6m during Q1. Golden Matrix said 808 unique casino operations are supported by its B2B gaming platforms, with the total number of registered users across these partners standing at 8.3 million.

In terms of spending, cost of goods sold during the quarter were up 2.4% to $8.5m. Total operating expenses also increased 10.7% to $3.1m.

Golden Matrix also noted $57,481 in other income, leaving a pre-tax profit of $336,685, in contrast to a $297,835 loss in the previous year. 

The operator paid $262,180 in tax but also accounted for $197,891 of positive foreign currency translation adjustments. As such, it ended Q1 with a net profit of $272,396, compared to a $291,262 loss in Q1 of 2023.

In addition, adjusted EBITDA for the quarter increased 33.8% to $1.2m.

“We are exceptionally pleased with the company’s performance in Q1 to kick-off the new fiscal year,” Goodman said.

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