Net revenue was 56.5% higher than the €27.1m posted by EveryMatrix in Q2 last year. It is also ahead of the previous quarterly record – €39m for Q1 this year – by 14.3%.
This figure does not include the impact of recent M&A activity. When the revenue total is adjusted to account for acquisitions, it reaches €82m, some 45% higher year-on-year compared to 56.5% net revenue growth, showing strong growth in the underlying business.
Group EBITDA for Q2 hit €25.1m, up 67.3% from last year and 12.6% higher than Q1’s existing record. As was also the case with revenue, it was the third consecutive quarter of a new high for EveryMatrix, while EBITDA margin also reached 59%.
“It’s difficult to know what to say when our results just keep getting better and better,” CEO Ebbe Groes (pictured above) said. “What is evident is that it’s been our best ever period of sustained growth and that the EveryMatrix effect is benefiting not just the business, but also crucially our customers, ensuring they continue to break their own records month after month.”
Growth across the board for EveryMatrix
Key for EveryMatrix in Q2 was year-on-year growth across its four core segments: casino, sports betting, platform and affiliate.
Casino remains by far its primary source of revenue, with Q2 being another record period for the business. Gross gaming revenue hit €658m, up 52.3% from the same quarter last year, while net revenue was 73.8% higher. EBITDA was also up 93% to €14.7m with a margin of 67%
During Q2, EveryMatrix introduced a total of 1,047 unique games and integrated nine new casino vendors, increasing its total count to more than 160. Another key development in Q2 was the launch of its first remote gaming server (RGS) partner in the US in Supremeland, extending its reach in the country.
Turning attention to sports betting, net revenue reached a record €11.3m, up 44.9% on last year. EBITDA climbed 65% to €7.2m, resulting in a margin of 64%. This came on the back of €1.19bn in turnover, up 48.9% on last year but down from Q4 of 2023 and Q1 this year.
Stand-out developments in this segment include the OddsMatrix service delivering a record 176,000 live events in a single month. In total, 500,000 events were covered during Q2, up 16% following the addition of new content such as table tennis and esports events.
Platform to build on and DeepCI affiliate rebrand
Looking now to the platform business, which includes the GamMatrix, MoneyMatrix and DataMatrix brands. Here, net revenue increased 34.5% to €7.8m, while EBITDA jumped 26% to €3.4m at a 43% margin.
Highlights include the player account management system processing 255,000 bets per minute in peak hours. Including bets per wins, this figure hit 340,000 bets per minute at peak times. In addition, successful transactions hiked 80% year-on-year to hit €3.80bn.
Finally, net revenue in the affiliate business was 55.6% up at €1.4m. However, EBITDA fell to a loss of €150,000 at a margin of negative 11%. This, EveryMatrix said, was due to product and commercial investment.
Within this segment, EveryMatrix rebranded DeepCI to PartnerMatrix Intelligence as part of the PartnerMatrix umbrella. This will help to maximise synergies and client benefits. The expanded PartnerMatrix business also signed up 26 new clients during Q2.
In addition, EveryMatrix made reference to its growing staff headcount, which now stands at 1,027. This is 31% higher year-on-year excluding staff (approximately 170) taken on as a result of the recent FSB Technology acquisition.
Considering the impact of FSB Technology
On this, EveryMatrix announced earlier this month it is acquiring sportsbook and platform specialist FSB Technology. It will now make use of FSB’s full end-to-end turnkey solutions, including player account management software and horse racing products.
This will help strengthen the OddsMatrix platform in a range of regulated markets the supplier said. FSB operates in 13 markets including both the UK and Ireland, Slovakia, Croatia, Nigeria and South Africa.
Financially, EveryMatrix said FSB has experienced good recent revenue growth. However, it has not been sufficient to offset high cost of sales and fixed costs, leading to “poor” financial results. This has in turn meant FSB is not close to breaking even despite staff cuts in recent years.
That said, EveryMatrix said it is confident FSB will make a positive contribution to earnings in 2025 and beyond. This is especially true for sports betting with 53% of net revenue in Q2 from FSB being from this market. In contrast, casino made up 29% of revenue and platform 18%.
EveryMatrix did note that FSB business will be loss-making in 2024. However, Groes is confident it will hit its longer-term targets.
“The acquisition of FSB Technology and the strengthening of PartnerMatrix with PartnerMatrix Intelligence to create the most powerful affiliate platform proposition available are just two great examples of how we’re continuing to build on our success and grow our customers even more,” he said.
“We have enormous momentum, and I can’t wait to see what happens next.”
Original article: https://igamingbusiness.com/finance/quarterly-results/everymatrix-record-q2/
