By M. Marin
READ THE FULL GMGI RESEARCH REPORT
STRONG 2024 GROWTH; MOMENTUM EXPECTED TO CONTINUE IN 2025/BEYOND
Revenue growth across all business lines
Golden Matrix Group (NASDAQ:GMGI), an iGaming group providing a broad array of gaming products and software solutions on a B2B and B2C basis, reported 4Q24/2024 results this week, turning in record company performance. GMGI recorded 81% and 63% year-over-year revenue growth in 4Q24 and full year 2024, respectively, to $46 million and $151 million. The company noted that that on a pro forma basis for the integration of Meridianbet, organic growth was roughly 20%.
GMGI registered strong growth across all of its business units and believes its acquisitions of Meridianbet and Classics for a Cause expanded its revenue base and brand value. Meridianbet was founded in 2001. It operates in more than 15 jurisdictions across Europe, Africa and Central and South America. Meridianbet leverages its proprietary technology and scalable systems to operate in multiple countries and currencies with an omni-channel approach to markets. Fueled by AI-powered engagement tools and content expansion, wagering volume on the GMAG B2B gaming platform increased 84% to $4.7 billion.
R Kings: Gross margins can increase, depending on demand and ticket sales
With R Kings Competitions, GMGI gained entry into the pay to enter competition niche in the U.K. Pay to enter competitions are online competitions in which participants pay to enter the competition and generally the winner is selected based on skill, not based on random chance. RKings Competitions revenue grew 23% year-over-year as ticket sales reached record levels. The company offered its largest RKings Competitions prize to date, which was £400K in cash or a four-bedroom house and Lamborghini. This competition generated $665K from 116K in ticket sales. R Kings conducts competitions that provide the opportunity for entrants to win prizes online such as cars, motorbikes, watches, technology, holidays, and luxury gadgets, among other items. Notably, the company’s cost of sales in this business line is not directly correlated to revenue, as GMGI can sell a higher number of tickets if demand exists and thereby boost gross margin.
2025 Guidance; expect continued momentum
The company continues to advance its strategy to expand its global footprint and also fulfill a core objective to diversify its revenue base across geographic markets, by operating segment and channel. GMGI views the diversification of its operations as a competitive advantage that likely mitigates potential contractions in any single market or channel. GMGI anticipates that 2025 will be characterized by strong revenue growth, market expansion, and improving profitability as momentum continues.
New Atlas technology platform; GMGI sees system’s ability to leverage AI as a significant competitive advantage
GMGI has completely transitioned to its newest technology platform, Atlas. Atlas represents the company’s fifth-generation sports betting and iGaming platform. Relative to prior iterations, it is characterized by enhanced efficiency and delivers an improved user experience, according to GMGI. GMGI sees Atlas and the ability to integrate AI enhancements relatively easily as another advantage compared to competitors that operate older legacy technology platforms. As it focuses on driving operational efficiency, GMGI believes Atlas enables scalability and innovation to support a growing customer base.
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