Golden Matrix reports record Q1 revenue surge to $11.84M; achieves positive net income

iGaming platforms developer and operator Golden Matrix Group (GMGI) reported a new quarterly record, as its revenue for the three months to 31 January grew 10% to $11.84 million. The company also reported Q1 net income of $74,505, a significant improvement from a loss of $443,521 in the same quarter last year.

The company posted $1.19 million in adjusted EBITDA, while total assets reached $37.1 million with shareholders’ equity at $32.15 million. The three-month period also marked the 9th consecutive quarter of positive cash flow from operations.

Golden Matrix operates in the interactive media industry, with a focus on both B2B and B2C segments. 

The company’s B2C segment, which includes RKings Competitions and the regulated casino MEXPLAY in Mexico, generated the majority of the revenue, accounting for 61% of the total, at 7.2 million.

Revenue from B2B business stood at $4.6 million for the quarter. The company’s B2B gaming platforms support 808 unique casino operations with a user base of 8.3 million registered users.

As for spending, cost of goods sold during Q1 increased by 2.4% to $8.5 million, while total operating expenses rose by 10.7% to $3.1 million.

Golden Matrix reported $57,481 in other income, resulting in a pre-tax profit of $336,685, a notable improvement from the $297,835 loss recorded in the same period last year.

After taxes of $262,180 and positive foreign currency translation adjustments of $197,891, the company ended the quarter with a net profit of $272,396 compared to a loss of $291,262 in Q1 2023.

The CEO of Golden Matrix, Brian Goodman, expressed confidence in the company’s position and its growth prospects, particularly in light of the pending MeridianBet acquisition. Golden Matrix agreed to buy MeridianBet in January of 2023, in a deal worth approximately $300 million.

Amendments were made in October that pushed the closing date to Q1 of 2024. In January, Golden Matrix said this was still the case, but the deal is yet to go through. A special meeting is scheduled for March 19, where Golden Matrix shareholders will vote on the deal.

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

“We achieved positive GAAP earnings and adjusted EBITDA of almost $1.2 million, 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.”

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