Golden Matrix Group Inc. Reports Strong Q3 2024 Earnings and Continued Operational Growth

Golden Matrix Group Inc. (NASDAQ: GMGI) (“Golden Matrix” or the “Company”) has reported impressive financial and operational outcomes for the third quarter ending September 30, 2024. This performance aligns with the Company’s strategic growth initiatives and its recent expansion efforts in key gaming markets, notably marked by the effective acquisition and integration of Classics for a Cause.

Brian Goodman, CEO of Golden Matrix, stated:

“Our performance in Q3 underscores our dedication to achieving sustainable, long-term growth while enhancing our standing in the gaming industry. Once again, we are proud to report significant success across all divisions, driven by astute acquisitions, platform enhancements, and the broadened scope of our iGaming portfolio.”

Financial Highlights

• Revenue Surge: Consolidated revenue for Q3 2024 soared by 85% to $41 million, with year-to-date revenue witnessing a rise of 55%, reaching $105.3 million. This growth is attributed to a consistent performance across pivotal markets.
• Increased Gross Profit: Gross profit for the quarter climbed 39% to $22.4 million, while year-to-date gross profit increased by 24%, totaling $61.8 million—evidence of enhanced operational efficiencies and improved product margins.
• Solid AEBITDA: Adjusted EBITDA for Q3 reached $4.3 million, showcasing a strong performance across multiple revenue streams with minimal impact from currency fluctuations among subsidiaries.
• Robust Balance Sheet: By September 30, 2024, Golden Matrix boasted a solid financial position with over $38.4 million in cash and equivalents, complemented by short-term debt of $17.5 million. Shareholder equity surged by 60% to $94 million, underscoring the Company’s capacity to pursue additional strategic investments.

Operational Highlights

During Q3 2024, Golden Matrix accomplished significant milestones:

Meridianbet’s Continuous Growth: Meridianbet experienced a 16% year-over-year revenue increase for Q3, with a notable 19% rise in online operations and 6% growth in retail venues. Total deposits reached $61.9 million, up 13% quarter-over-quarter, while new player registrations surged by 23% to 125,000. The online casino’s gross gaming revenue (GGR) margin peaked at 3.37%, reflecting a turnover increase of 21%. Sports betting revenue improved by 7.4% year-over-year, with GGR reported at 9.5%, and retail sports GGR attained an outstanding 10.3%—recording 14.1% in August. Concurrently, retail slots saw growth of 17.5% year-over-year.

Expansion of the GMAG Platform: The GMAG B2B aggregator platform recorded a tremendous increase in wagering volume, ascending by 84% to $1.4 billion. The introduction of advanced customer retention tools and a portfolio enriched with high-margin games have significantly bolstered engagement and profitability.

Classics for a Cause Acquisition: The newly integrated Australian entity contributed $2.1 million in revenue and $503,000 in EBITDA within just two months, thus enhancing Golden Matrix’s market positioning and profitability prospects.

Growth in Mexplay: The Company’s Mexican online casino, Mexplay, reported a remarkable 56% upswing in active players, driving gross gaming revenue to $15 million and highlighting significant growth opportunities in the Latin American landscape.

Zoran Milosevic, CEO of Meridianbet, remarked on the strategic advancements achieved, emphasizing the integration of key acquisitions and operational enhancements, including the launch of Meridianbet’s fifth-generation platform, touted to be the most advanced technology in the iGaming sector globally. Milosevic noted a focus on maximizing cost efficiencies and harnessing synergies across their international operations to promote sustainable growth and profitability. As Golden Matrix enters the fourth quarter, the Company remains focused on enhancing operational efficiency and profitability, positioning itself for a record performance in 2024.

For a detailed account of Golden Matrix’s financial performance, please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which has been filed with the SEC and is accessible at https://gamblingindustrynews.com/news/casino/golden-matrix-group-strong-q3-growth-2024/.

* Adjusted EBITDA is a non-GAAP financial metric. For further understanding, see “Non-GAAP Financial Measures” and “Reconciliation of Net Income to Adjusted Earnings, excluding Interest Expense, Interest Income, Tax, Depreciation Expense, Amortization Expense, Stock-based Compensation Expense, and Restructuring Costs,” provided within the tables at the conclusion of this release. In accordance with GAAP standards and Meridianbet’s status as accounting acquirer, the financial comparisons presented are precise and reflective of the updated structure. GAAP comparisons encompass consolidated results of the Company against historical results from Meridianbet Group, not against historical results of Golden Matrix Group.