The Golden Matrix Group (GMGI) achieved a new high for annual income in the 2023 fiscal year, reaching $43.5 million (£34.3 million/€40 million), but its overall deficit expanded.
GMGI’s income saw a 22.8% year-on-year increase, which the company credited to its varied investment collection. The record income in 2023 matched GMGI’s forecasts released late last year.
However, GMGI’s net loss climbed to $1 million in the past year, up from $454,065 in 2022. GMGI attributed this to non-cash costs related to management and administration, including $2.5 million in stock-based compensation. Taxes also rose, along with operational and consulting expenses for Mexplay.
GMGI’s chief executive welcomed the “substantial” income growth.
Overall, GMGI CEO Brian Goodman was positive about the annual outcomes. He pointed to income growth as a key achievement for the business and expressed confidence in further growth in 2024.
“We continue to make significant progress on the top line year after year,” Goodman stated. “This strong momentum has resulted in four consecutive years of income growth and increased shareholder equity.”
GMGIs achievements in the previous financial period are a result of its varied portfolio, encompassing both business-to-business and business-to-consumer operations, with activities in some of the most rapidly expanding online gaming markets globally.
During the past year, GMGI invested significantly in both its B2B and B2C platforms, which was essential for maintaining competitiveness and driving robust revenue growth. Its advanced gaming systems and high-quality game content continue to evolve to attract and increase its expanding millions of users.
GMGI’s financial performance presents a mixed picture, with cost growth exceeding revenue growth.
For the twelve months concluding December 31, 2023, GMGI’s B2B division generated $15.6 million in revenue, while its B2C division generated $28.5 million.
In its B2B operations, GMGI currently collaborates with 785 gaming operators and has 8.2 million customers. Meanwhile, its RKings and Mexplay brands in the B2C segment currently have over 325,000 and 61,000 registered users, respectively.
On the expenditure side, the cost of goods sold increased by 27.5% to $34.3 million, while total operating expenses increased by 15.6% to $10.4 million. GMGI earned $36,803 in other income from interest earned during the year.
The pre-tax loss was $489,444 compared to a profit of $463,077 in the corresponding period in 2022. GMGI paid $683,306 in income taxes, resulting in a net loss of $1.2 million, up from $250,038 in the preceding year.
However, this loss was reduced by a positive foreign exchange gain of $132,588.
As a result, GMGI attributed the overall loss to $1 million, in comparison to $454,065 in 2022.
“We are confident that the outcomes of the previous fiscal year demonstrate the ongoing strength, competitiveness, and variety of our portfolio, intellectual property, and the solid foundations of our operating markets,” Goodman stated.
GMGI is close to finalizing a deal with MeridianBet
In the meantime, GMGI provided an update to the market regarding its ongoing purchase of MeridianBet. GMGI agreed to buy MeridianBet in January 2023, in a transaction valued at approximately $300 million.
GMGI aimed to finalize the acquisition in the first half of 2023. However, in July, GMGI made several changes to the agreement, shifting the completion date to the fourth quarter of 2023.
In October, it was reported that discussions between the two parties had resulted in further adjustments. The primary change was extending the proposed completion date, pushing it to the first quarter of 2024.
Earlier this month, GMGI indicated that it hoped to complete the acquisition before the end of the first quarter. Goodman mentioned that this remains the company’s objective.
“The [acquisition] is anticipated to significantly enhance GMGI’s global presence and substantially increase revenue and profitability,” Goodman stated.
“It will offer numerous B2B and B2C products across multiple global regions, and we believe the combined company will be well-positioned to participate in the online gaming markets in the United States and Canada.”
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