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Golden Matrix Group, Inc. (GMGI), a leading gaming technology provider, has reported an increase in revenues for the second quarter of 2023. The company generated a total of $10,308,359 in revenues, compared to $8,482,743 in the same period last year, representing a significant growth of $1,825,616.
The increase in revenues can be attributed to the growth in three distinctive revenue streams for the company.
Intellectual Property and Technology Systems
Firstly, GMGI charges gaming operators for the use of its unique intellectual property (IP) and technology systems. The company generated $218,030 in revenues from this source during the second quarter of 2023, with an additional $217,087 coming from Articulate Pty Ltd, a related party. This is consistent with the $212,378 in revenues generated from IP and technology systems during the same period in 2022.
Reselling Third-Party Gaming Content
Secondly, GMGI has expanded its operations to become a reseller of third-party gaming content. This has resulted in increased revenues of $3,581,953 for the second quarter of 2023, compared to $3,153,257 in the same period last year. The company has seen an increase in the number of customers and registered players, contributing to this revenue growth.
Prize Competition tickets Sales
Lastly, GMGI generates revenues from sales of prize competition tickets in the United Kingdom. During the second quarter of 2023, the company generated $6,488,466 in revenues from this source, compared to $5,117,108 in the same period last year. This increase in revenues is mainly due to the facilitation of cash alternative offers for winners of prizes within RKings’ business.
Expansion in Mexico
In addition to these revenue streams, GMGI has also launched an online casino in Mexico, branded Mexplay. This platform offers table games, slots, sportsbooks, and tournament competition prizes similar to those offered by RKings. Mexplay generated revenues of $19,910 during its first month of operation in March 2023.
Gross Profit Decrease
Despite the overall increase in revenues, GMGI experienced a decrease in gross profit compared to the same period last year. Gross profit for the second quarter of 2023 amounted to $2,059,982, compared to $2,540,562 in 2022, representing a decrease of $480,580. This decrease was mainly due to a decrease in gross profit contributed by the B2C segment in the UK, which includes RKings and GMG Assets.
Steps to Address Decrease in Gross Profit
To address this decrease in gross profit, GMGI aims to consolidate redundant operating aspects and increase gross profit and margin moving forward. The company plans to focus on appointing more resellers of third-party gaming content and reducing reliance on related parties. Additionally, GMGI plans to increase the profit margins on individual prizes in its prize competitions and explore opportunities for further growth in its online casino operations.
Overall, GMGI’s strong revenue growth reflects the company’s commitment to expanding its global presence and diversifying its product offerings. With its innovative technology and strategic partnerships, GMGI is well-positioned to capitalize on the growing demand for gaming solutions worldwide.
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