Key stats
- Total revenue increases 24% year-on-year
- Adjusted EBITDA records an 83% fall, totalling $161,783
- Net income falls to a minus $965,628
- Golden Matrix’s CEO blames the loss on the acquisition of MeridianBet
Overall, Golden Matrix’s total revenue was recorded in Q3 2023 at $11.3m – which takes into account related party revenue. The figure is 24% above the sum it made in Q3 2022 when it posted $9.1m in total revenue.
Moving onto Golden Matrix’s adjusted EBITDA for Q3 2023, the company posted a sum of $161,783 – this represents a dramatic 83% fall on Q3 2022 when it recorded an adjusted EBITDA of $1m.
The reason for the sharp drop in adjusted EBITDA is due to Golden Matrix’s net loss of $965,628, which is a massive fall on Q3 2022’s net income of 679,649.
The graph below shows Golden Matrix’s revenue in Q3 2023 and Q3 2022, as well as its net income for the same period.
This comes after Golden Matrix amended its purchase agreement with MeridianBet, allowing both parties to modify the initial $300m deal and reduce the initial $50m cash payment due from Golden Matrix to $30m – with an additional $20m in non-contingent cash consideration due post-closing.
However, despite the amendment agreement, it will still be subject to shareholder approval.
Meanwhile, the company’s comprehensive income attributable to GMGI (Golden Matrix’s listing on the Nasdaq stock exchange) fell to a minus figure of $886,413 – a swing of over $1.3m compared to the $574,451 positive sum in Q3 2022.
This was echoed in Golden Matrix’s CEO, Brian Goodman’s, comments: "With respect to the reported net loss of $965,628, profitability in Q3 was impacted by several factors, including a significant increase in one-off legal and due-diligence expenses associated with the anticipated acquisition of the MeridianBet Group, as well as the start-up marketing costs related to the roll-out of Mexplay, the Company’s B2C online casino in Mexico."
For the year so far, Golden Matrix has recorded revenue of $31.8m – 23% higher than the same period in 2022. Meanwhile, its $1.5m in adjusted EBITDA for 2023 so far is 47% down on Q3 2022’s $2.86m – with a net loss of $1.94m against the same period last year’s $1.56m.
Finally, Golden Matrix’s share price enjoyed a strong start to the year before falling and plateauing, with a rise being seen in the last few weeks. On January 3, its price was recorded at $2.55, while its high came on January 11 at $4.09 – at the time of writing, the price sits at $2.80. Furthermore, its market capitalisation is at $101.9m.
