B2B and B2C gaming technology company Golden Matrix has posted a net loss of $444,000 in the first fiscal quarter of the year, ended January 31, despite revenue increasing 21.4% to a record $10.8 million. In the comparable three-month period the prior year, the business had posted net income of $349,379.
The Las Vegas-based firm also delivered Adjusted EBITDA slightly up to $889,605 in Q1, while cash and cash equivalents amounted to $15.4 million as of January 31. The white label platform provider saw the issuance of $961,000 in stock-based compensation during the three-month period, which pushed the business into its net loss for the quarter.
Despite what they described as “a challenging economic climate worldwide,” the company’s officials said they were pleased with Golden Matrix’s B2B and B2C continuing “to grow and gain traction in their respective markets.” Revenue contributions in Q1 from the B2B and B2C segments were $4,224,457 (39%) and $6,553,222 (61%), respectively.
“Additionally, we are making significant progress in preparing to enter new geographic markets through MEXPLAY, our recently formed B2C casino platform in Mexico, and through the anticipated acquisition of the MeridianBet Group and its related companies,” pointed out Golden Matrix CEO Anthony Brian Goodman.
Golden Matrix entered into a definitive agreement to acquire B2C sports betting and gaming business MeridianBet in a cash and stock transaction valued at approximately $300 million on January 12. The deal is expected to be completed during the first half of the year, subject to the completion of certain conditions to closing, including funding and shareholder approval.
“The MeridianBet acquisition is expected to position Golden Matrix as a profitable worldwide gaming company with significant growth prospects, including the potential entry into regulated North American markets, subject to applicable rules and regulations,” added Goodman.
In other Q1 updates, the company also announced current gaming operators using its systems now amount to 710, serving registered user numbers of 7.2 million in the B2B business.
The B2C segment – RKingsCompetitions – now has over 289,000 registered users on its tournament platform. During the quarter, RKings became a wholly-owned subsidiary when Golden Matrix exercised its option to acquire the remaining 20% non-controlling interest in the UK-based prize draw brand.
You can read Golden Matrix’s full Q1 report here.