On August 13, 2024, Golden Matrix Group Inc (GMGI, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Golden Matrix Group Inc is an established gaming technology company that develops and owns online gaming IP and builds configurable and scalable white-label social gaming platforms for its international customers, located in the Asia Pacific region. The company operates in two reportable segments; B2B and B2C, with the B2C segment earning the majority of the revenue. The company operates in the UK, Asia Pacific, and Latin America, offering configurable and scalable iGaming platforms and operating some of the industry's iconic brands, including MexPlay, R Kings Competitions, and GM-AG.
Performance Highlights
Golden Matrix Group Inc (GMGI, Financial) reported a robust 75% increase in second-quarter consolidated revenue, reaching $39.4 million compared to the same period in 2023. Year-to-date (YTD) revenue also saw a significant rise of 41%, totaling $64.3 million. This growth underscores the company's strong operational performance and successful strategic initiatives.
Consolidated gross profits for the second quarter increased by 31% to $21.7 million, while YTD gross profits rose by 17% to $39.4 million. Despite these gains, the second quarter net income was modest at $15,000, impacted by non-cash items and substantial one-off costs related to recent acquisitions and restructuring efforts.
Financial Achievements and Metrics
Golden Matrix Group Inc (GMGI, Financial) maintained a consistent Adjusted EBITDA (AEBITDA) of $5 million for the second quarter, recognizing the one-time costs associated with the Meridianbet acquisition. Shareholders' equity grew by 52% to $89.5 million as of June 30, 2024, compared to December 31, 2023. The company's net debt leverage ratio stood at a low 1.6, reflecting a strong financial position.
Cash on hand saw a remarkable increase of 61%, amounting to over $32.8 million as of June 30, 2024, compared to $20.4 million at the end of 2023. This liquidity boost is crucial for supporting ongoing and future strategic initiatives.
Income Statement and Balance Sheet Overview
| Metric | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $32,829,744 | $20,405,296 |
| Accounts Receivable, Net | $7,224,485 | $2,674,967 |
| Total Current Assets | $48,555,378 | $26,929,402 |
| Goodwill & Intangible Assets, Net | $105,176,593 | $15,107,422 |
| Total Assets | $191,537,719 | $79,852,980 |
| Total Liabilities | $101,146,206 | $19,866,431 |
| Total Shareholders Equity | $89,530,801 | $59,034,826 |
Commentary and Analysis
"I am pleased to report that the consolidation of Meridianbet has been seamless, and we have gained strong momentum following the acquisition, as evidenced by our successful results. Our second quarter delivered exceptional results, driven by operational success across all business units. We have maintained high performance through product diversity and cross-platform initiatives." - Brian Goodman, CEO of Golden Matrix Group
"Meridianbet’s key performance indicators for this quarter reflect its strong performance, ongoing growth, and market expansion. The solid results of this past quarter are further evidence of our belief that our strategy and positioning to capture the opportunities ahead of us are sound and are expected to lead to further growth and scale." - Zoran Milošević, CEO of Meridianbet
Golden Matrix Group Inc (GMGI, Financial)'s strategic acquisitions and robust financial performance highlight its strong position in the interactive media industry. The company's ability to generate significant revenue growth and maintain a healthy balance sheet underscores its potential for continued success and expansion in the global gaming market.
For more detailed information on Golden Matrix Group Inc (GMGI, Financial)'s financial performance, please refer to the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, available at www.sec.gov.
Explore the complete 8-K earnings release (here) from Golden Matrix Group Inc for further details.
