LAS VEGAS, Dec. 06, 2024 (GLOBE NEWSWIRE) — Golden Matrix Group, Inc. (NASDAQ: GMGI) (“GMGI,” “Golden Matrix,” or the “Company”), a developer, licensor, and global operator of online gaming and eCommerce platforms, systems and gaming content, today issued a corporate update from CEO Brian Goodman highlighting the Company’s recent performance, strategic priorities and financial positioning.
Record Breaking Q3 2024 Performance
In Q3 2024, the Company achieved $41 million in consolidated revenue, equating to a remarkable 85% growth rate year-over-year. Year-to-date revenue grew by 55% to $105.3 million and Gross profit increased by 39% to $22.4 million. With a 60% growth rate in shareholder equity and over $38.4 million in cash, Golden Matrix continues to demonstrate financial strength and stability.
“The gaming market is booming, and GMGI’s Q3 results underscore the Company’s ability to deliver sustainable, long-term growth while solidifying our industry position. Our growth in consolidated revenue and gross profit highlights the success of the firm’s strategic initiatives and the strength of our team,” said Goodman.
Brazil License Approval
As recently announced, Golden Matrix Group is nearing formal approval for entry into Brazil’s regulated market, completing another step in the process of becoming one of the first companies to receive a license to operate in the country in accordance with new regulations. Licenses for brands that meet the correct requirements are expected to be granted by the end of this year.
Brazil’s regulated online sports betting and iGaming market is projected to reach $5.6 billion Gross Gaming Revenue (GGR) by 2025, according toH2GC, an extraordinary growth opportunity that Golden Matrix is well-positioned to capture.
“The Brazilian license will certainly be a game-changer for the Company, offering a transformative opportunity to establish a strong foothold in one of the world’s fastest-growing gaming markets,” commented Goodman.
Financial Discipline and Strong Balance Sheet
As of September 30, 2024, the Company reported $38.4 million in cash reserves, significantly exceeding its $17.5 million in short-term debt. This strong balance sheet enables liability management, supports accretive acquisitions and empowers the execution of GMGI’s growth strategy.
Goodman continued, “Our financial position allows us to remain agile and proactive in capital allocation initiatives while also ensuring consistent value for our shareholders.”
Ensuring Liquidity and Growth
The Company has taken prudent steps to enhance liquidity and provide flexibility in its capital sourcing strategy. The recent filing of an At-The-Market (ATM) offering is a standard financial tool that reinforces the Company’s long-term positioning.
“The ATM is part of our broader financial planning to ensure we are well-prepared to support future opportunities,” said Goodman. “It’s important to note that having an ATM in place does not compel us to utilize it; rather, it provides an additional option to strengthen our growth trajectory should favorable conditions arise.”
About Golden Matrix Group
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.
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 September 30, 2024, and future periodic reports on Form 10-K and Form 10 Q. These reports are available at http://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.
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Contacts
ICR
Investors: Brett Milotte Brett.Milotte@icrinc.com
Press: Greg Michaels Gregory.Michaels@icrinc.com
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