Golden Matrix Group (GMGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 85% year-over-year to $41 million, with year-to-date revenue up 55% to $105.3 million, reflecting robust growth and successful integration of acquisitions, including MeridianBet Group and Classics for a Cause.

• Gross profit increased 39% in Q3 to $22.4 million, and year-to-date gross profit rose 24% to $61.8 million, driven by operational efficiency and product margin improvements.

• Adjusted EBITDA for Q3 reached $4.3 million, impacted by one-off acquisition costs and currency fluctuations.

• Net loss attributable to GMGI for Q3 was $3.41 million, compared to net income of $3.48 million in the prior year, due to higher G&A, interest, FX losses, and tax provisions.

• The company operates in over 15 jurisdictions, with a diversified portfolio in sports betting, online casino, iGaming, and prize competitions.

Financial highlights

• Q3 consolidated revenues rose 85% year-over-year to $41 million; year-to-date revenue up 55% to $105.3 million.

• Q3 gross profit increased 39% to $22.4 million; year-to-date gross profit up 24% to $61.8 million.

• Q3 Adjusted EBITDA was $4.3 million; year-to-date Adjusted EBITDA was $15.7 million.

• Net income for Q3: $(3.3) million; year-to-date: $0.67 million.

• Cash and equivalents as of September 30, 2024: $38.4 million; short-term debt: $17.5 million.

Outlook and guidance

• Management expects FY2024 to be a landmark year, citing strong synergies from acquisitions and platform upgrades.

• Over 80% of core operations transitioned to the Atlas platform, enhancing efficiency and engagement.

• Expansion in Latin America and integration of new businesses are expected to drive further growth.

• Focus remains on cost rationalization, operational optimization, and pursuing accretive acquisitions.

• Sufficient cash on hand to meet current working capital and capital expenditure needs for at least twelve months.