White label platform provider Golden Matrix saw the issuance of $961,000 (PS790,831/EUR903,635) in stock-based compensation push the business into a net loss $444,000 for the three-month period ending 31 January, compared to the $349,000 in earnings the business achieved the same period the previous year.
The quarter’s revenue was $10.8 million, which is 21.4% more than the $8.9m that the business earned in the first quarter 2022. Golden Matrix was pleased with the company’s continued growth, despite uncertain macroeconomic conditions.
“Despite the difficult economic environment worldwide, we are happy that our B2B- and B2C segments continue their growth and gain traction within their respective markets,” stated Anthony Brian Goodman, CEO of Golden Matrix.
Goodman also discussed the company’s growth plans in the inorganic and organic segments for the coming year. He also described the steps involved in the $300m acquisition.
He said that “We are making significant advances in entering new markets through MEXPLAY in Mexico, our newly formed B2C online casino platform, and through the expected acquisition of the MeridianBet Group (and its related companies) which is expected to be completed, in the first half this year subject to certain conditions to closing including funding and shareholder approval.”
“The acquisition of MeridianBet is expected to position GMGI worldwide as a profitable gaming company with substantial growth prospects, including entry into regulated North American markets subject to applicable rules.”
Quarterly Results
The company reported an adjusted earnings before interest tax, depreciation and amortisation (AEG) of $890,000. This is 22.1% more than the $729,000 it announced for the 2022 period.
The company’s expenses rose 71%, from $1.62m up to $2.77m. According to the business, $961,000.00 is stock-based compensation. The company didn’t report the stock-based compensation used to cover the company’s expenses in the previous period. It also did not break down costs beyond its parent company and its B2C subsidiary, making it difficult to compare like for like.
As of 31 January 2023, the business had $15.4m in cash and $34.4m assets. It reported that 710 operators used its systems to serve 7.2 million end users in the traditional B2B vertical. Golden Matrix’s B2C subsidiary RKingsCompetitions Ltd, which is owned by Golden Matrix, now has 289,000 registered users.
In November, the company rescinded its option and acquired the remaining 20% in the UK-based prize drawing brand.
