Golden Matrix Group, Inc. (NASDAQ:GMGI), a leading provider of enterprise software-as-a-service (SaaS) solutions for online casino operators and online sports betting operators, as well as a provider of pay-to-enter prize competitions in the United Kingdom and an online casino in Mexico, is making waves in the sports betting industry with its subsidiary Meridianbet's unprecedented offering for the 2024 Paris Olympics.
Meridianbet, a well-established online sports betting and gaming group recently acquired by Golden Matrix, is set to offer an astounding 383 distinct betting options for each event across all 45 Olympic sports. With 2,600 different prices available for each match or competition, this amounts to over 1 million unique betting opportunities throughout the Games, providing an unmatched level of engagement for Olympic fans.
Leveraging its recently launched innovative AI technology, Meridianbet's Olympic offerings include standard match/event winner bets, medal predictions (gold, silver, bronze), total medals won per country, individual athlete performance wagers, team-specific bets, and even a Bet Builder feature for all available markets. This comprehensive coverage, powered by state-of-the-art AI, is a testament to Meridianbet's commitment to delivering an unparalleled sports betting experience.
The 2024 Paris Olympics, with their rich history dating back to ancient Greece, represent the pinnacle of athletic achievement. As the world's attention turns to this global event, Golden Matrix Group, through its Meridianbet subsidiary, is poised to capitalize on the immense interest and excitement surrounding the Games.
Business Overview
Golden Matrix Group's B2B division has a strong track record of developing and licensing proprietary gaming platforms for an extensive list of clients. The company's B2C division, RKings, operates a high-volume eCommerce site enabling end users to enter paid-for competitions on its proprietary platform in authorized markets. Additionally, the company owns and operates MEXPLAY, a regulated online casino in Mexico.
Financials
In the company's most recent fiscal year, Golden Matrix Group reported annual revenue of $36,034,856, a 15% increase from the previous year. The company's net income for the year was $4,028,000, and it generated $2,771,418 in annual operating cash flow and $2,613,057 in annual free cash flow.
For the latest quarter ended January 31, 2024, Golden Matrix Group reported revenue of $11,843,882, a 10% increase compared to the same quarter in the prior year. The company's net income for the quarter was $74,505, and it generated $8,175 in operating cash flow and $6,664 in free cash flow.
The company's management has provided guidance for the current fiscal year, targeting revenue of $48,591,457 and adjusted EBITDA of $2,637,004. These targets represent a 10% increase in revenue and a 32% increase in adjusted EBITDA compared to the previous fiscal year.
Geographically, Golden Matrix Group's revenue is primarily derived from the Asia-Pacific region, which accounted for 39% of total revenue in the latest quarter. The company's B2C segment, which includes the RKings and MEXPLAY operations, contributed 61% of total revenue in the same period, with the UK and Latin America regions accounting for 59% and 2% of total revenue, respectively.
The company's B2B segment, which provides software-as-a-service solutions to online casino and sports betting operators, has been a consistent driver of revenue, contributing 39% of total revenue in the latest quarter. The B2C segment, which includes the company's pay-to-enter prize competitions in the UK and the online casino in Mexico, has been a rapidly growing part of the business, accounting for 61% of total revenue in the latest quarter.
Golden Matrix Group's strong financial performance and innovative product offerings have positioned the company as a leader in the global gaming and sports betting industry. The company's recent acquisition of Meridianbet, with its unparalleled Olympic betting options, further strengthens its competitive position and ability to capitalize on the growing demand for sports betting and online gaming.
Liquidity
The company's liquidity position remains robust, with $17,292,978 in cash and cash equivalents as of January 31, 2024. This strong cash position, combined with the company's positive operating and free cash flow, provides ample resources to fund ongoing operations, invest in growth initiatives, and pursue strategic acquisitions.
Risks and Challenges
However, the company is not without its risks. The highly competitive nature of the online gaming and sports betting industry, regulatory changes, and the potential for disruptions caused by acquisitions are all factors that could impact Golden Matrix Group's future performance. Additionally, the company's reliance on third-party gaming content and the ability to obtain additional gaming licenses in new markets are key risks that investors should consider.
Outlook
Despite these risks, Golden Matrix Group's innovative product offerings, strong financial performance, and strategic initiatives, such as the Meridianbet acquisition, position the company for continued growth and success in the rapidly evolving gaming and sports betting landscape. The company's unparalleled Olympic betting options through Meridianbet are a testament to its commitment to delivering cutting-edge solutions and enhancing the overall user experience for sports enthusiasts and gaming aficionados alike.