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Golden Matrix Group, Inc. (ticker GMGI) has reported a total revenue of $10.3 million for the second quarter of 2023. The company operates in two segments: Business-to-Business (B2B) and Business-to-Consumer (B2C). The B2B segment includes software licensing and royalties charged on the use of third-party gaming content, while the B2C segment comprises pay-to-enter prize competitions in the UK and an online casino website in Mexico.
In Q2 2023, the B2B segment generated revenues of $3.8 million, accounting for 37% of the total revenue. This represents an increase from the previous year’s Q2 revenue of $3.4 million. The B2C segment, on the other hand, generated revenues of $6.5 million, making up 63% of the total revenue. This is compared to $5.1 million in Q2 2022. Overall, Golden Matrix Group’s total revenue saw a significant increase compared to the previous year.
The geographic distribution of the company’s revenue in Q2 2023 shows that revenue from the Asia Pacific region accounted for 37% or $3.8 million of the total revenue. The UK market contributed 63% or $6.5 million. Revenue from Latin America, specifically Mexico, started generating income in March 2023 and accounted for a small fraction of the total revenue at $19,910.
Cost of Goods Sold (COGS)
The cost of goods sold (COGS) for the B2B segment amounted to $2.8 million, representing 34% of the total COGS. This is compared to $2.5 million in Q2 2022. The B2C segment had COGS of $5.5 million, accounting for 66% of the total COGS, and an increase from $3.5 million in Q2 2022.
Cost of Goods Sold by Geographic Region
When looking at the cost of goods sold by geographic region, it is observed that the Asia Pacific region accounted for 34% or $2.8 million of the total COGS, while the UK market contributed 66% or $5.4 million. The report also highlights that there were no COGS from Latin America during this period.
Income Tax Expenses
Golden Matrix Group, Inc. had income tax expenses of $72,301 for the three months ended in Q2 2023, and $217,987 for the six months ended. These expenses were attributable to the company’s operations in the UK. Additionally, the company assumed an income tax liability of $602,628 from RKings as of November 1, 2021.
The company has entered into a Sale and Purchase Agreement with the owners of Meridian Tech, a private limited company in Serbia. The agreement involves the acquisition of 100% of the outstanding capital stock of each of the Meridian Companies. The acquisition is set to close in two phases, with a total consideration of $50 million in cash, restricted shares of the company’s common stock, preferred stock, and other payments.
It is important to note that while the company is in a dispute with one of the sellers of RKings, Mr. Paul Hardman, regarding a holdback amount of approximately $628,220, no formal legal action has been initiated by either party at this time.
In conclusion, Golden Matrix Group, Inc. has reported strong revenue growth in the second quarter of 2023, driven by its B2C segment in the UK and the ongoing expansion of its operations in Mexico. The company’s strategic acquisition plans and commitment to international markets position it for continued success in the future.
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