The group’s third quarter concludes on 31 July, but its performance to date led to the early projection of growth. This followed growth in the second quarter of its financial year.
Analysing the quarter, GMGI said growth was driven by a number of factors including the RKings business, which benefited from technology upgrades. This, GMGI said, allowed it to accommodate more tournament participants and resulted in improved offerings.
The group took full ownership of RKings in November last year, having initially purchased a majority holding in November 2021.
GMGI also noted the success of MGAsset, a complementary business offering tournament winners of an expensive car or other high-ticket item the option to take a pre-determined cash option in lieu of the prize. This, it said, generated over $1.2m in revenue in the first two months of Q3.
Elsewhere, the Mexplay B2C online casino in Mexico saw consistent month-on-month progress. The brand launched in February, with wagering figures in June reaching $3.1m, up from $1.2m in May.
“We are seeing solid compounding growth in our fully regulated Mexican online casino,” Golden Matrix CEO Brian Goodman said. “We expect our success there to lead to expansion into other Latin American countries.”
In addition, GMGI highlighted the performance of B2B aggregate gaming system GMX.ag. It said this part of the business continues to gain traction with the addition of new operators each quarter.
“We are extremely pleased with the strength of our B2B and B2C platforms and their popularity with a growing number of participants,” Goodman said.
MeridianBet acquisition
Goodman went on to say that further growth is expected following the planned acquisition of MeridianBet.
GMGI struck a deal in January to purchase MeridianBet for approximately $300m. Terms of the agreement were amended earlier this month, with GMGI hoping to complete the deal in the fourth quarter.
At the time of the original deal, GMGI said this would mark its launch into the B2C market. Subject to completion, the MeridianBet group of companies will become wholly owned subsidiaries of Golden Matrix.
GMGI also said that the acquisition would provide it with access to new and fast-growing regulated B2C markets. In addition, GMGI expects the deal to create a combined group of profitable and cash-positive companies.
Following the acquisition, GMGI said it expects to be positioned for growth, both organically and through further acquisitions, with synergetic growth opportunities in core markets via the MeridianBet brand and other GMGI B2C brands and market entries.
“In addition to benefitting from operational improvements in each of the company’s business units during the quarter, we have made excellent progress with the due diligence process of the MeridianBet Group,” Goodman said.
“We now have multiple offers of funding that will help secure the financing required to complete the acquisition.
“We remain confident that GMGI, with its growing internal strength and the pending MeridianBet acquisition, is on the cusp of transforming into not only a diverse and profitable gaming company, but also one that has considerable scale and extensive global representation.”
GMGI expects to post is Q3 results in full on or before 15 September.
Original article: https://igamingbusiness.com/finance/quarterly-results/golden-matrix-growth-q3/
