Golden Matrix Group, Inc. (NASDAQ: GMGI)(“Golden Matrix”, “GMGI” or
the “Company”), a developer and licensor of online gaming
platforms, systems, and gaming content, is pleased to announce its
financial results for the second quarter of 2024 and year to date,
demonstrating robust growth and continued operational success.
The full visual presentation and the earnings call can be
accessed on the Golden Matrix Group website at
goldenmatrix.com/events-presentations/
- Second
quarter consolidated revenue grew 75% to $39.4 million,
compared to the second quarter of 2023, a continuation of the
strong trend shown in the last quarter whilst YTD revenue grew by
41% to $64.3 million, compared to the first half of 2023.
- Second
quarter consolidated gross profits increased by 31% to
$21.7 million and YTD gross profits also increased by 17% to $39.4
million, each compared to the same periods in 2023.
- Second
Quarter Net Income of $15,000 impacted by non-cash items
as well as considerable one-off acquisition, restructuring and
implementation costs related to the recent acquisition.
- Second
quarter consolidated Adjusted EBITDA (AEBITDA) was
consistent at $5 million, compared to the second quarter of 2023,
while recognising the one-time costs of completion and
implementation of the Meridianbet – Golden Matrix acquisition.
*
-
Shareholders’ equity of the Company grew 52% to
$89.5 million, compared to December 31, 2023.
- Net Debt
Leverage ratio of only 1.6 as of June 30, 2024. *
- Cash on
hand as of 31st July at over $40 million, a 96% increase
over December 31, 2023, cash on hand of $20.4 million.
Brian Goodman,
CEO of Golden Matrix Group, commented, “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.”
Zoran Milošević, CEO of Meridianbet, added,
"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.
“The quarter has been marked by significant achievements and
promising opportunities and I am excited about the future of this
newly consolidated and diversified business.”
The full visual presentation and the
webcast earnings call can be accessed on the
Golden Matrix Group website at
goldenmatrix.com/events-presentations/
For additional information on Golden Matrix’s financial
performance, please refer to the Company’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2024, which has been filed with
the SEC today and is available at
https://www.nasdaq.com/market-activity/stocks/gmgi/sec-filings or
www.sec.gov.
* Adjusted EBITDA, Net Debt and Net Debt Leverage are non-GAAP
financial measures. See also “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" and “Reconciliation of Net Debt and Leverage
Calculation”, included in the tables at the end of this
release.
In terms of GAAP
accounting and Meridianbet being the accounting acquirer, the
comparisons presented are correctly stated and are reflective of
our new structure. Comparisons presented in terms of GAAP are the
consolidated Company’s results against Meridianbet Group historical
results and not against Golden Matrix Group’s, historical
results.
For more information, please visit our website at
goldenmatrix.com.
About Golden Matrix
Golden Matrix Group, based in Las Vegas, NV, is an established
B2B and B2C gaming technology company operating across multiple
international markets. The B2B division of Golden Matrix develops
and licenses proprietary gaming platforms for its extensive list of
clients and RKings, its B2C division, operates a high-volume
eCommerce site enabling end users to enter paid-for competitions on
its proprietary platform in authorized markets. The Company also
owns and operates MEXPLAY, a regulated online casino in Mexico.
Meridianbet Group, founded in 2001 and acquired
by Golden Matrix in 2024, is a well-established online sports
betting and gaming group, licensed and currently operating in 15
jurisdictions across Europe, Africa and South America. Meridianbet
Group’s successful business model utilizes proprietary technology
and scalable systems, thus allowing it to operate in multiple
countries and currencies and with an omni-channel approach to
markets, including retail, desktop online and mobile.
The companies’ sophisticated software automatically declines any
gaming or redemption requests from within the United States, in
strict compliance with current US law.
Non-GAAP Financial Measures
Adjusted EBITDA or AEBITDA, Net Debt and Net Debt Leverage,
which are discussed above, are “non-GAAP financial measures”
presented as a supplemental measure of the Company’s performance.
Adjusted EBITDA, Net Debt and Net Debt Leverage are not presented
in accordance with accounting principles generally accepted in the
United States, or GAAP. Adjusted EBITDA represents net income
before interest expense, interest income, taxes, depreciation and
amortization, and also excludes stock-based compensation expense
and restructuring costs. Net Debt is defined as total debt less
cash and cash equivalents. Net Debt Leverage Ratio is defined as
net debt as of the balance sheet date divided by annualized
adjusted EBITDA for the quarter then ended. We believe that using
Net Debt and Net Debt Leverage Ratio is useful to investors in
determining our leverage ratio since we could choose to use cash
and cash equivalents to retire debt. Adjusted EBITDA is presented
because we believe it provides additional useful information to
investors due to the various noncash items during the period.
Adjusted EBITDA, Net Debt and Net Debt Leverage are not recognized
in accordance with GAAP, are unaudited, and have limitations as
analytical tools, and you should not consider them in isolation, or
as substitutes for analysis of the Company’s results as reported
under GAAP. Some of these limitations are: Adjusted EBITDA, Net
Debt and Net Debt Leverage do not reflect cash expenditures, or
future requirements for capital expenditures, or contractual
commitments; Adjusted EBITDA, Net Debt and Net Debt Leverage do not
reflect changes in, or cash requirements for, working capital needs;
Adjusted EBITDA, Net Debt and Net Debt Leverage do not reflect the
significant interest expense, or the cash requirements necessary to
service interest or principal payments, on debt or cash income tax
payments; although depreciation and amortization are noncash
charges, the assets being depreciated and amortized will often have
to be replaced in the future, and Adjusted EBITDA, Net Debt and Net
Debt Leverage do not reflect any cash requirements for such
replacements; and other companies in this industry may calculate
Adjusted EBITDA, Net Debt and Net Debt Leverage differently than
the Company does, limiting their usefulness as a comparative
measure. The Company’s presentation of these measures should not be
construed as an inference that future results will be unaffected by
unusual or nonrecurring items. For more information on these
non-GAAP financial measures, please see the section titled
“Reconciliation of Net Income to Adjusted Earnings excluding
Interest Expense, Interest Income, Depreciation Expense,
Amortization Expense, Stock-based Compensation Expense and
Restructuring Costs” and “Reconciliation of Net Debt and Leverage
Calculation”, included at the end of this release.
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release contain
forward-looking information within the meaning of applicable
securities laws, including within the meaning of the Private
Securities Litigation Reform Act of 1995 (“forward-looking
statements”). Words such as “strategy,” “expects,” “continues,”
“plans,” “anticipates,” “believes,” “would,” “will,” “estimates,”
“intends,” “projects,” “goals,” “targets” and other words of
similar meaning are intended to identify forward-looking statements
but are not the exclusive means of identifying these
statements.
Important factors that may cause actual results and outcomes to
differ materially from those contained in such forward-looking
statements include, without limitation, the amount, timing, and
sources of funding for the Company’s repurchase program, the fact
that common share repurchases may not be conducted in the timeframe
or in the manner the Company expects, or at all, the ability of the
Company to obtain the funding required to pay certain Meridianbet
Group acquisition post-closing obligations, the terms of such
funding, potential dilution caused thereby and/or covenants agreed
to in connection therewith; potential lawsuits regarding the
acquisition; dilution caused by the terms of an outstanding
convertible note and warrants, the Company’s ability to pay amounts
due under the convertible note and covenants associated therewith
and penalties which could be due under the convertible note and
securities purchase agreement related thereto for failure to comply
with the terms thereof; the business, economic and political
conditions in the markets in which the Company operates; the effect
on the Company and its operations of the ongoing Ukraine/Russia
conflict and the conflict in Israel, changing interest rates and
inflation, and risks of recessions; the need for additional
financing, the terms of such financing and the availability of such
financing; the ability of the Company and/or its subsidiaries to
obtain additional gaming licenses; the ability of the Company to
manage growth; the Company’s ability to complete acquisitions and
the availability of funding for such acquisitions; disruptions
caused by acquisitions; dilution caused by fund raising, the
conversion of outstanding preferred stock, convertible securities
and/or acquisitions; the Company’s ability to maintain the listing
of its common stock on the Nasdaq Capital Market; the Company’s
expectations for future growth, revenues, and profitability; the
Company’s expectations regarding future plans and timing thereof;
the Company’s reliance on its management; the fact that the sellers
of the Meridianbet Group hold voting control over the Company;
related party relationships; the potential effect of economic
downturns, recessions, increases in interest rates and inflation,
and market conditions, decreases in discretionary spending and
therefore demand for our products and services, and increases in
the cost of capital, related thereto, among other affects thereof,
on the Company’s operations and prospects; the Company’s ability to
protect proprietary information; the ability of the Company to
compete in its market; the effect of current and future regulation,
the Company’s ability to comply with regulations and potential
penalties in the event it fails to comply with such regulations and
changes in the enforcement and interpretation of existing laws and
regulations and the adoption of new laws and regulations that may
unfavorably impact our business; the risks associated with gaming
fraud, user cheating and cyber-attacks; risks associated with
systems failures and failures of technology and infrastructure on
which the Company’s programs rely; foreign exchange and currency
risks; the outcome of contingencies, including legal proceedings in
the normal course of business; the ability to compete against
existing and new competitors; the ability to manage expenses
associated with sales and marketing and necessary general and
administrative and technology investments; and general consumer
sentiment and economic conditions that may affect levels of
discretionary customer purchases of the Company’s products,
including potential recessions and global economic slowdowns.
Although we believe that our plans, intentions and expectations
reflected in or suggested by the forward-looking statements we make
in this press release are reasonable, we provide no assurance that
these plans, intentions or expectations will be achieved.Other
important factors that may cause actual results and outcomes to
differ materially from those contained in the forward-looking
statements included in this communication are described in the
Company’s publicly-filed reports, including, but not limited to,
under the “Special Note Regarding Forward-Looking Statements,”
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the
Company’s periodic and current filings with the SEC, including the
Form 10-Qs and Form 10-Ks, including, but not limited to, the
Company’s Annual Report on Form 10-K for the year ended October 31,
2023 and its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024, and future periodic reports on Form 10-K and Form
10‑Q. These reports are available at www.sec.gov.
The Company cautions that the foregoing list of important
factors is not complete, and does not undertake to update any
forward-looking statements except as required by applicable law.
All subsequent written and oral forward-looking statements
attributable to the Company or any person acting on behalf of the
Company are expressly qualified in their entirety by the cautionary
statements referenced above. Other unknown or unpredictable factors
also could have material adverse effects on the Company’s future
results. The forward-looking statements included in this press
release are made only as of the date hereof. The Company cannot
guarantee future results, levels of activity, performance or
achievements. Accordingly, you should not place undue reliance on
these forward-looking statements. Finally, the Company undertakes
no obligation to update these statements after the date of this
release, except as required by law, and takes no obligation to
update or correct information prepared by third parties that is not
paid for by the Company. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements.
Connect with us:
X - https://twitter.com/gmgi_official
Instagram
- https://www.instagram.com/goldenmatrixgroup/
Golden Matrix Group
ir@goldenmatrix.com
ICR
Investors: Brett MilotteBrett.Milotte@icrinc.com
Press:Brian RubyBrian.Ruby@icrinc.com
Golden Matrix Group, Inc. and Subsidiaries |
Consolidated Balance Sheets |
|
As
of |
As of |
|
30-Jun-24 |
31-Dec-23 |
|
(Unaudited) |
(Audited) |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
32,829,744 |
|
$ |
20,405,296 |
|
Accounts receivable, net |
|
7,224,485 |
|
|
2,674,967 |
|
Accounts receivable – related parties |
|
761,233 |
|
|
399,580 |
|
Taxes receivable |
|
428,594 |
|
|
997,778 |
|
Inventory |
|
3,340,198 |
|
|
133,905 |
|
Prepaid expenses |
|
1,514,567 |
|
|
328,400 |
|
Other current assets |
|
2,456,557 |
|
|
1,989,476 |
|
Total current assets |
|
48,555,378 |
|
|
26,929,402 |
|
|
|
|
Non-current assets: |
|
|
Goodwill & intangible assets, net |
|
105,176,593 |
|
|
15,107,422 |
|
Property, plant & equipment, net |
|
27,745,235 |
|
|
27,826,594 |
|
Investments |
|
230,402 |
|
|
237,828 |
|
Deposits |
|
5,748,865 |
|
|
5,586,495 |
|
Operating lease right-of-use assets |
|
4,064,117 |
|
|
4,147,375 |
|
Other non-current assets |
|
17,129 |
|
|
17,864 |
|
Total non-current assets |
|
142,982,341 |
|
|
52,923,578 |
|
Total assets |
$ |
191,537,719 |
|
$ |
79,852,980 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable and accrued liabilities |
$ |
9,364,065 |
|
$ |
8,751,562 |
|
Accounts payable - related parties |
|
22,228 |
|
|
12,605 |
|
Current portion of operating lease liability |
|
1,686,724 |
|
|
2,299,317 |
|
Current portion of long-term loan |
|
6,030,876 |
|
|
- |
|
Taxes payable |
|
3,197,227 |
|
|
6,137,513 |
|
Other current liabilities |
|
1,079,981 |
|
|
581,644 |
|
Contingent liability |
|
632,100 |
|
|
- |
|
Current portion of consideration payable |
|
29,300,000 |
|
|
Total current liabilities |
|
51,313,201 |
|
|
17,782,641 |
|
|
|
|
Non-current liabilities: |
|
|
Non-current portion of operating lease liability |
|
2,280,408 |
|
|
1,795,870 |
|
Non-current portion of long-term loan |
|
19,420,224 |
|
|
- |
|
Other non-current liabilities |
|
132,373 |
|
|
287,920 |
|
Non-current portion of consideration payable - Meridian
acquisition |
|
25,000,000 |
|
|
- |
|
Convertible note |
|
3,000,000 |
|
|
- |
|
Total non-current liabilities |
|
49,833,005 |
|
|
2,083,790 |
|
Total liabilities |
$ |
101,146,206 |
|
$ |
19,866,431 |
|
|
|
|
Shareholders’ equity: |
|
|
Preferred stock: $0.00001 par value; 20,000,000 shares
authorized |
|
- |
|
|
- |
|
Preferred stock, Series B: $0.00001 par value, 1,000 shares
designated, 1,000 and 0 shares issued and outstanding,
respectively |
|
- |
|
|
- |
|
Preferred stock, Series C: $0.00001 par value, 1,000 shares
designated, 1,000 and 1,000 shares issued and outstanding,
respectively |
|
- |
|
|
- |
|
Common stock: $0.00001 par value; 300,000,000 shares authorized;
120,801,977 and 83,475,190 shares issued and outstanding,
respectively |
$ |
1,208 |
|
$ |
835 |
|
Stock payable |
|
120,000 |
|
|
- |
|
Stock payable - related party |
|
30,166 |
|
|
- |
|
Additional paid-in capital |
|
32,210,148 |
|
|
3,044,894 |
|
Accumulated other comprehensive income (loss) |
|
(5,413,521 |
) |
|
(3,307,578 |
) |
Accumulated earnings |
|
62,582,800 |
|
|
59,296,675 |
|
Total shareholders’ equity of GMGI |
|
89,530,801 |
|
|
59,034,826 |
|
Noncontrolling interests |
|
860,712 |
|
|
951,723 |
|
Total equity |
|
90,391,513 |
|
|
59,986,549 |
|
Total liabilities and equity |
$ |
191,537,719 |
|
$ |
79,852,980 |
|
|
|
|
|
|
|
Golden Matrix Group, Inc and
Subsidiaries |
Consolidated Statements of Operations and Comprehensive
Income |
(Unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
Revenues |
$ |
39,415,242 |
|
$ |
22,578,810 |
|
|
$ |
64,265,829 |
|
$ |
45,515,122 |
|
Cost of goods sold |
|
(17,729,700 |
) |
|
(6,040,914 |
) |
|
|
(24,888,357 |
) |
|
(11,826,572 |
) |
Gross profit |
|
21,685,542 |
|
|
16,537,896 |
|
|
|
39,377,472 |
|
|
33,688,550 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Selling, general and administrative expenses |
|
21,560,430 |
|
|
12,610,305 |
|
|
|
35,558,239 |
|
|
24,933,761 |
|
Income from operations |
|
125,112 |
|
|
3,927,591 |
|
|
|
3,819,233 |
|
|
8,754,789 |
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
Interest expense |
|
(32,484 |
) |
|
(19,523 |
) |
|
|
(36,855 |
) |
|
(27,881 |
) |
Interest earned |
|
69,666 |
|
|
6,260 |
|
|
|
104,548 |
|
|
9,725 |
|
Foreign exchange loss |
|
(131,458 |
) |
|
(92,384 |
) |
|
|
(118,521 |
) |
|
(45,331 |
) |
Other income |
|
509,759 |
|
|
312,637 |
|
|
|
1,002,909 |
|
|
506,227 |
|
Total other income |
|
415,483 |
|
|
206,990 |
|
|
|
952,081 |
|
|
442,740 |
|
Net income before tax |
|
540,595 |
|
|
4,134,581 |
|
|
|
4,771,314 |
|
|
9,197,529 |
|
Provision for income taxes |
|
524,969 |
|
|
418,241 |
|
|
|
806,666 |
|
|
831,537 |
|
Net income |
$ |
15,626 |
|
$ |
3,716,340 |
|
|
$ |
3,964,648 |
|
$ |
8,365,992 |
|
Less: Net income (loss) attributable to noncontrolling
interest |
|
(49,299 |
) |
|
90,290 |
|
|
|
(91,011 |
) |
|
129,388 |
|
Net income attributable to GMGI |
$ |
64,925 |
|
$ |
3,626,050 |
|
|
$ |
4,055,659 |
|
$ |
8,236,604 |
|
|
|
|
|
|
|
Weighted average ordinary shares outstanding: |
|
|
|
|
|
Basic |
|
120,582,719 |
|
|
83,475,190 |
|
|
|
102,028,954 |
|
|
83,475,190 |
|
Diluted |
|
128,455,184 |
|
|
83,475,190 |
|
|
|
105,965,187 |
|
|
83,475,190 |
|
Net income per ordinary share attributable to GMGI: |
|
|
|
|
|
Basic |
$ |
0.00 |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
$ |
0.10 |
|
Diluted |
$ |
0.00 |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
$ |
0.10 |
|
|
|
|
|
|
|
Net income |
|
15,626 |
|
|
3,716,340 |
|
|
|
3,964,648 |
|
|
8,365,992 |
|
Foreign currency translation adjustments |
|
(301,263 |
) |
|
(666,820 |
) |
|
|
(2,105,943 |
) |
|
175,775 |
|
Comprehensive income |
|
(285,637 |
) |
|
3,049,520 |
|
|
|
1,858,705 |
|
|
8,541,767 |
|
Less: Net income (loss) attributable to noncontrolling
interest |
|
(49,299 |
) |
|
90,290 |
|
|
|
(91,011 |
) |
|
129,388 |
|
Comprehensive income attributable to GMGI |
|
(236,338 |
) |
|
2,959,230 |
|
|
|
1,949,716 |
|
|
8,412,379 |
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted Earnings excluding Interest Expense,
Interest Income, Tax, Depreciation Expense, Amortization Expense,
Stock-based Compensation Expense, and Restructuring Costs. |
|
|
|
|
|
|
Three Months Period Ended |
Six Months Period Ended |
|
30-Jun-24 |
30-Jun-23 |
30-Jun-24 |
30-Jun-23 |
Net income |
$ |
15,626 |
|
$ |
3,716,340 |
|
$ |
3,964,648 |
|
$ |
8,365,992 |
|
+ Interest expense |
|
32,484 |
|
|
19,523 |
|
|
36,855 |
|
|
27,881 |
|
- Interest income |
|
(69,666 |
) |
|
(6,260 |
) |
|
(104,548 |
) |
|
(9,725 |
) |
+ Taxes |
|
524,969 |
|
|
418,241 |
|
|
806,666 |
|
|
831,537 |
|
+ Depreciation |
|
826,664 |
|
|
883,422 |
|
|
2,028,263 |
|
|
1,739,496 |
|
+ Amortization |
|
1,913,047 |
|
|
475,689 |
|
|
2,355,366 |
|
|
936,652 |
|
EBITDA |
$ |
3,243,124 |
|
$ |
5,506,955 |
|
$ |
9,087,250 |
|
$ |
11,891,833 |
|
+ Stock-based compensation |
|
1,638,052 |
|
|
- |
|
|
1,638,052 |
|
|
- |
|
+ Restructuring costs |
|
546,986 |
|
|
35,858 |
|
|
593,349 |
|
|
192,162 |
|
Adjusted EBITDA |
$ |
5,428,162 |
|
$ |
5,542,813 |
|
$ |
11,318,651 |
|
$ |
12,083,995 |
|
|
|
|
|
|
Reconciliation of
Net Debt and Leverage Calculation |
|
|
|
|
Debt |
$ |
68,451,100 |
|
Less: cash and cash equivalents |
|
32,829,744 |
|
Net debt |
|
35,621,356 |
|
Divided by: annualized adjusted EBITDA |
|
21,712,648 |
|
Net debt leverage ratio |
|
1.6 |
|
|
|
|
- Golden Matrix Group, Inc.
Golden Matrix (NASDAQ:GMGI)
過去 株価チャート
から 9 2024 まで 10 2024
Golden Matrix (NASDAQ:GMGI)
過去 株価チャート
から 10 2023 まで 10 2024