Gold Matrix Reports Net Loss Despite Revenue Growth
Gold Matrix revealed a financial deficit in the second quarter, even though it witnessed a year-on-year increase in earnings.
The online game creator and licensor, Gold Matrix Group (GMGI), reported a net loss in the second quarter, despite seeing an increase in revenue year-over-year.
Gold Matrix reported a net loss in the second quarter, despite seeing an increase in income.
GMGI stated that the second quarter is traditionally its slowest quarter, and it was satisfied with the revenue performance of its B2B and B2C divisions in the three months ending April 30.
However, the group mentioned that a system malfunction affected the revenue and profitability of its RKings B2B business when a significant number of customers purchased tickets for high-value prize competitions.
Addressing the problem, CEO Brian Goodman stated that the technology has been updated so the system can handle higher player traffic in the future.
“Collaborating with Amazon AWS, the technology has now been upgraded to enhance the performance and speed of the RKings servers and accommodate increased player engagement,” Goodman said.
“Having addressed this issue, we remain optimistic about the continued success of RKings in the UK and anticipate introducing its scalable platform to more geographical markets.”
Increased expenses offset revenue growth
Earnings in the second quarter reached $1.31 million (£8.1 million/€9.5 million), up 21.2% from $830,000 a year ago. The RKings B2B division contributed $3.8 million, while the 6.
Mexplays business-to-consumer operations generated $5 million in revenue.
Examining expenditures, the cost of goods sold rose by 39% to $8.2 million, while operational costs also climbed by 44.4% to $26 million.
GMGI also reported additional income of $29,281 from interest and currency exchange gains. However, the effect of increased spending resulted in a pre-tax deficit of $461,452, in contrast to a profit of $873,229 in 2022.
The company paid $72,301 in income tax, leading to a net loss of $533,753, compared to a profit of $586,984 in the previous year. Even after factoring in $96,343 in foreign currency translation, the consolidated net loss reached $437,410, compared to a profit of $476,749 in the same period last year.
Net Loss in the Second Half
The group’s figures for the initial six months of the fiscal year exhibited a similar trend. Revenue increased by 21.3% to $21.1 million, but elevated spending resulted in a net loss.
Cost of goods sold reached $16.6 million, while operating expenses amounted to $5.3 million. Income related to finance reached $60,401, but pre-tax loss was $759,287, compared to a profit of $1.4 million in 2022.
Income tax payments totaled $217,987, resulting in a net loss of $977,274, compared to a profit of $1.1 million in the same period last year. After considering $248,602 in foreign currency translation, the consolidated net loss reached $728,672, compared to a profit of $833,182 in the same period last year.
MeridianBet Acquisition Nearing Completion
GMGI also provided an update on its planned acquisition of MeridianBet Group and its associated companies.
The collective came to a consensus in January to take possession of the B2C sports wagering and gaming enterprise for roughly $300 million.
GMGI declared that the parties have verbally consented to extend the cutoff date and adjust extra stipulations of the accord to expedite the conclusion of the deal. Plans to affirm the new ultimate completion date will be publicized in the imminent future.
“This is an exhilarating period for our organization,” Goodman stated. “We enter the latter half of the year with a robust financial position and two established verticals, as well as a burgeoning casino operation in Mexico.
“With the triumphant acquisition of MeridianBet Group, the consolidated entity will generate numerous gaming income streams while furnishing the most sought-after and superior products, encompassing casino games and sports betting, to patrons worldwide.”
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