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Headline: Golden Matrix Group Reports Increase in Revenues from Reselling Gaming Content in Q2 2023
Golden Matrix Group, Inc. (ticker: GMGI) has reported an increase in revenues from reselling gaming content during the second quarter of 2023. The company generated $7,617,029 in revenues from the reselling of gaming content, compared to $6,295,960 in the same period last year.
The $1,321,069 increase in revenues is attributed to an increased number of customers and registered players with GMGI’s clients. This growth reflects the company’s efforts to appoint more resellers of third-party gaming content and reduce its reliance on related parties.
Revenues from Intellectual Property and Technology Systems
In addition to reselling gaming content, GMGI also generates revenues from its intellectual property (IP) and technology systems. During the second quarter of 2023, the company generated $407,411 of revenues from its IP and technology systems. This includes $403,730 from Articulate, a related party owned by the CEO and Chairman of GMGI, Anthony Brian Goodman, and his wife Marla Goodman. This revenue stream remained relatively stable compared to the same period last year.
Revenues from Prize Competitions
Furthermore, GMGI generates revenues from operating prize competitions in the United Kingdom and from its online casino branded Mexplay. Revenues from prize competitions during the second quarter of 2023 were $13,041,688, compared to $10,613,383 in the same period last year. The $2,428,305 increase in revenues is mainly attributed to the revenues derived from facilitating cash alternative offers for winners of prizes within GMGI’s subsidiary RKings’ business. This revenue stream did not exist in the previous year.
Revenues from Mexplay
The company also saw its online casino Mexplay generate $19,910 in revenues during the second quarter of 2023. This revenue stream was not in operation during the same period last year.
Total Revenues
Overall, GMGI’s total revenues for the second quarter of 2023 reached $21,086,038, compared to $17,359,848 in the same period last year.
Net Loss
Despite the increase in revenues, GMGI reported a net loss attributable to the company of $(533,753) in the second quarter of 2023, compared to a net income of $586,984 in the same period last year. This decrease in net income is primarily due to a decrease in gross profits and an increase in stock-based compensation.
Gross Profit
GMGI’s gross profit for the second quarter of 2023 was $4,503,016, compared to $4,564,665 in the same period last year. The decrease of $61,649 in gross profit was mainly due to a decrease in gross profit contributed from the B2C segment in the UK, which includes the operations of RKings and GMG Assets. The gross profit margin for the B2B segment remained relatively consistent, while the gross profit margin for the B2C segment decreased from 27% to 19% due to unforeseen technology challenges and failures that affected ticket sales for large competitions.
Liquidity and Capital Resources
In terms of liquidity and capital resources, GMGI had $15,753,813 of cash on hand as of April 30, 2023. The company is self-sustaining and generates positive cash flows from operations, which it believes will be sufficient to meet its working capital needs for the next 12 months and beyond.
The company does not currently have any additional commitments or identified sources of additional capital. However, it may consider raising funds through debt, private placements, or additional public offerings for expansion or strategic acquisitions.
Conclusion
Overall, Golden Matrix Group, Inc. is focused on increasing revenues through reselling gaming content, expanding its product offerings, and improving gross profit margins. Despite the challenges faced in the second quarter of 2023, the company remains confident in its ability to achieve long-term, sustainable growth in the gaming industry.
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