GMGI Reports Record Income, But Net Losses Rise
The Gold Matrix Group (GMGI) achieved a record annual income of $43.5 million (£34.3 million/€40 million) in fiscal year 2023, but unfortunately, net losses also rose.
GMGI’s income expanded by 22.8% from the previous year, which the organization credited to its varied portfolio. The record income in 2023 aligns with GMGI’s forecasts released at the end of the previous year.
However, GMGI’s net loss expanded from $454,065 in 2022 to $1 million in the past year. GMGI attributed this primarily to management and administrative non-cash costs related to $2.5 million in stock-based compensation. Taxes also increased, while the company also witnessed higher spending on Mexplay operations and consulting fees.
GMGI’s CEO welcomed the “significant” increase in income.
Overall, GMGI CEO Brian Goodman was optimistic about the yearly results. He cited income growth as a key highlight for the business and expressed a positive outlook for further growth in 2024.
Goodman stated, “We continue to make significant progress on the income front year over year. This strong momentum has resulted in four consecutive years of income growth and an increase in shareholder equity.”
GMGI experienced a successful year, driven by its endeavors in both business-to-business and business-to-consumer gaming. They devoted substantial resources to both sectors, contributing to their business expansion. Their games enjoy widespread popularity and are continuously being enhanced.
GMGI’s expenditures escalated at a faster rate than their revenue, a concerning trend. They generated $15.6 million from their B2B operations and $28.5 million from their B2C activities.
Their B2B division collaborates with 785 gaming companies and boasts 8.2 million users. Their B2C division, encompassing RKings and Mexplay, has over 325,000 and 61,000 users, respectively.
Their costs experienced a significant increase. The expense of game development surged by 27.5%, while other expenses climbed by 15.6%. They did earn some interest income, but it was insufficient to offset their losses.
They incurred a pre-tax loss of $489,444, a decline compared to the $463,077 profit achieved in the previous year. After accounting for taxes, their loss amounted to $1.2 million, exceeding the $250,038 loss incurred last year.
However, they did benefit from foreign exchange gains, which partially mitigated their losses.
As a result, the overall financial loss attributed to GMGI was $1 million, in comparison to $454,065 in the previous year.
“We are confident in the outcomes achieved in the previous fiscal year, which illustrate the continued strength, competitiveness, and diversity of our portfolio, intellectual property, and the strong fundamentals of the markets in which we operate,” Goodman stated.
GMGI is close to finalizing an agreement with MeridianBet
Meanwhile, GMGI provided an update to the market regarding its ongoing acquisition of MeridianBet. GMGI agreed to acquire MeridianBet in January of 2023, in a transaction valued at approximately $300 million.
GMGI aimed to finalize the acquisition in the first half of 2023. However, in July, GMGI made some adjustments to the agreement, shifting the completion date to the fourth quarter of 2023.
In October, it was disclosed that negotiations between the two parties had resulted in further adjustments. The primary change was an extension of the proposed completion date, pushing the completion date to the first quarter of 2024.
Earlier this month, GMGI stated that it hoped to finalize the acquisition before the end of the first quarter. Goodman indicated that this remains the objective for the company.
“The [acquisition] is anticipated to significantly drive GMGI’s global presence and substantially increase revenue and profitability,” Goodman stated.
“It will offer numerous B2B and B2C products in multiple regions across the globe, and we believe the combined entity will be well-positioned to participate in the online gambling markets in the US and Canada.”
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