Q3 2024 Golden Matrix Group Inc Earnings Call
Thank you and good morning, everyone welcome to Golden Matrix groups third quarter 'twenty 'twenty four earnings call. We appreciate you joining us today.
On today's call are Brian Goodman, CEO, and cofounder of Golden Matrix Group.
Zoran Milosevic CEO of Meridian bad.
Brian in Saran will provide an overview of colden matrix's Q3 financial and operational results at the conclusion of this call the recording and supporting resources will be available at the Goldman matrix group's website. As a reminder, today's call will contain forward looking statements.
Certain statements made on this conference call, including our responses to questions may constitute forward looking information within the meaning of applicable securities laws. These statements are based on various assumptions about future events, including market and economic conditions business prospects Tech.
The logical developments and regulatory changes, while we believe these assumptions are reasonable they are subject to risks and uncertainties that could cause actual results to differ materially for a complete discussion of these factors. Please refer to our most recent 10-Q filing and other public disclosures.
Speaker Change: non-GAAP measures will be discussed and reconciliation of these numbers can also be found in our recently filed 10-Q and earnings press release available on our website. Please note. This event is being recorded if you require operator assistance. Please press Star then zero I will now hand over to Brian Goodman C.
Brian Goodman: E O and cofounder of Goldman Matrix group.
Speaker Change: Thank you and good morning, everyone welcome to Golden age group's Q3 2024 earnings call. We appreciate you joining us today on today's call are Brian <unk>, CEO and co founder of Golden Matrix Group Enduro, Malosovich CEO viridian that Brian <unk>, who will provide an overview of Golden matrix Q3 financial and operational results.
Speaker Change: This call recording and supporting resources will be available I go to matrix group's website as.
Speaker Change: As a reminder, today's call will contain forward looking statements certain statements made on this conference call, including our responses to questions may constitute forward looking information within the meaning of the applicable securities law.
Speaker Change: Payments are based on various assumptions about future events, including market economic conditions business prospects technological developments and regulatory changes. While we believe these assumptions are reasonable they are subject to risks and uncertainties that could cause actual results to differ materially a complete discussion of these factors. Please refer to our most recent 10-Q filings and other public disclosures non.
Speaker Change: non-GAAP financial measures will be discussed and reconciliation to these members can also be found in our recently filed 10-Q and earnings press release available on our website.
Speaker Change: I will now hand, the call over to Brian Gibson, CEO and co founder are called Matrix Group Brian.
Brian Gibson: Welcome everyone and thank you for joining Golden matrix, its third quarter earnings call.
Brian Gibson: Joining me today is orange velocity CEO of Meridian beams to update you on the progress across our business on this call. We will cover operational highlights financial performance divisional performance and the overall outlook for the company as we look towards the close of 2000.
Brian Gibson: In 2012.
Speaker Change: Starting with operational performance I'm happy to report on the company's continued operational progress.
Speaker Change: Third quarter reflects our continued resilience and commitment to long term growth strengthening our industry position and executing on our business goals. In Q3, we continued our strategy of scaling the business delivering broad based growth with strong contributions across our.
Key markets and also finalizing the classics for Kohl's acquisition, which will no doubt deliver solid revenues and added profits to build the matrix.
Speaker Change: Additionally, our recent performance in October of 2024 is clearly demonstrated in supported a bullish outlook for strong ongoing growth and sustainable results.
Speaker Change: On to financial highlights.
Speaker Change: The entire I gaming industry is booming and we are very proud to be part of this rapidly evolving segment of the market. We have yet again posted strong financial performance across the business.
Speaker Change: Third quarter consolidated revenues grew 80 clump of stage $241 million.
Speaker Change: A continuation of the strong trend shown in the lowest quarter year to date revenue grew.
Speaker Change: 55% to $105 million.
Speaker Change: Third quarter.
Speaker Change: On the day to gross profit increased by 13, 9% to $22.4 million and year to date gross profit also increased by 24% to $61.8 million.
Speaker Change: Third quarter consolidated adjusted EBITDA was four $3 million.
Speaker Change: During Q3, we did encounter residual one off costs due to the completion and implementation of the Meridian based acquisition and also the recent acquisition of classics protocols.
Speaker Change: Company has continued to maintain a healthy balance sheet.
Speaker Change: As of September 30th the company had over 38 $4 million in cash and equivalents with short term debt of only 17, four and $5 million.
Speaker Change: Shareholder equity of the company grew 60% to $94 million.
Speaker Change: [noise] divisional performance turning to the individual business units, where we have continued our strong momentum.
Speaker Change: I will begin with all kings competitions are high performing and highly profitable U K based tournament business.
Speaker Change: All kings experienced a brief challenge with one of its customer acquisition channels, which marginally impacted the performance of that tournament business for Q3. However, we have now overcome this hurdle and we are already seeing an exceptionally strong recovery with the recent surge in ticket.
Speaker Change: Sales revenues and increased profitability and we expect this business to regain each record setting accomplishments.
Speaker Change: Revenue in October was already up on September by 11, 1% and we expect a strong performance for this quarter with expectations for continued strong Q4 growth and for all kids do you get to again make a substantial contribution to both profits and revenues for the <unk>.
Speaker Change: I agree.
Speaker Change: G M. A G L b to B aggregator platform.
Speaker Change: Continues to deliver as we focus on increasing gross margins by diversifying our game portfolio and introducing popular high margin games in the evolving landscape of odd gaming, where innovation is key one of the most exciting and important development.
Speaker Change: I gave me is the new crush game category and we are fortunate to have a diverse range of the worlds most popular crush games.
Speaker Change: The addition of high demand games and improvement in AI, driven customer retention strategies have resulted in substantial increases in wagering volume and active player numbers on the G M. A cheap platform.
Speaker Change: Third quarter wagering grew by 84% to $1 $4 billion and year to date Wagering also increased by a staggering 115% to $3 $6 billion.
We have been focusing on improving our gross margins in this business unit.
Speaker Change: Third quarter gross profit margin increased to 26, 2% compared to 24, 7% in the second quarter of 2024.
Speaker Change: We are encouraged by this recent momentum in generating higher margins in this business unit.
Speaker Change: Onto classics for of course, our newly acquired business in Australia. This recent acquisition is introduced.
Speaker Change: Dynamic new segment to our portfolio.
Speaker Change: <unk>, new revenue streams bottom line profitability and expanding our customer base, we have seen enthusiastic player participation, indicating strong market acceptance. This division is a unique differentiator for us, adding substantial brand venue and I'm pleased.
Speaker Change: To announce that our classics for Kohl's Division, which we acquired earlier this quarter is already delivering significant contributions to the overall business.
Speaker Change: We anticipate continued success as we improve the technology and capability and integrate this business into our other divisions, neither reaching its unique value proposition whilst classics for of course did not trade for the full quarter. It was only acquired on August <unk> 2020.
Speaker Change: The company has already contributed to $1 million in revenues $503000 in EBITDA and 253000 in profit for only two months of the quarter.
Speaker Change: Our Mexican online casino mix like continues to scale cash deposits and extra players are both trending upward underscoring the growth potential in this market, we have a monthly average of the other <unk>.
Speaker Change: 14000 active players in the third quarter compared to 9000 in the second quarter, a 56% increase.
Third quarter cash deposits of $1 $5 million with 25% higher compared to $1 2 million in the second quarter of 2020 pool.
Speaker Change: Third quarter gross gaming wagering of $15 million increased.
Speaker Change: <unk>, 7% compared to $9 million in the second quarter of this year.
Speaker Change: Third quarter gross gaming revenue of $575000 jumped 36% compared to $422000 in the second quarter.
Speaker Change: I'll now hand, you over to our CEO of Meridian to talk through Meridian based results.
Speaker Change: Thank you, Brian and welcome everyone I'm pleased to present meridian.
Speaker Change: Groundout result in strong growth this quarter.
Speaker Change: Overall revenue growth in Q3, 2024 museum, but deliver strong financial performance with total revenue increasing by 16%.
Speaker Change: Now to Q3 'twenty.
Speaker Change: This growth was driven by our online segment contributed to a 19% increase while the retail segment grew by 6%.
Speaker Change: Total depth.
Since the one 9 million, marking a 13% increase from Q2 2024.
Speaker Change: New online destinations.
Speaker Change: <unk> hundred 25000, achieving the multiple climbed 3% year on year growth.
Speaker Change: Online casino performance.
Speaker Change: Third quarter, our online to funeral gross gaming revenue margin rose two key points.
Speaker Change: 1%.
Speaker Change: <unk> level since Q2 'twenty to 'twenty two.
Speaker Change: Room over last June two planes.
Speaker Change: 2%.
Speaker Change: Quarterly turnover reached.
Speaker Change: $356 4 million was gone.
Speaker Change: <unk> strong 21% year over year increase.
Speaker Change: We achieved a robust.
Speaker Change: One 6% year over year growth fueled by additional over 1000 cloud.
Speaker Change: Yes.
Speaker Change: Cooper heavily developed but our own in house studio.
Speaker Change: A top choice for player engagement across all lines.
Speaker Change: <unk> thousand 500.
Speaker Change: Jim O'neill was further strengthened with the integration of <unk>.
Speaker Change: In addition, our games.
Speaker Change: Long side the launch of the globe.
Two of them switching to medium priced.
Speaker Change: Sports betting vertical.
Speaker Change: Sports betting revenue economy, both online and retail.
Speaker Change: Seven 4% increase year on year, despite the challenging outcomes in July and September.
Speaker Change: Our online sports does margin improved to nine 5%.
Speaker Change: Up from eight 1% in Q3 2022.
Speaker Change: Multiple target marketing during euro 2024.
Speaker Change: Yeah.
Speaker Change: Retail sports performance.
Speaker Change: In Q3 2020 for all retail shops to GTR module, you just don't know.
Speaker Change: 10, 3% with almost achieved a record breaking 41% the highest margin for this month on the record highlighting our strong performance this quarter.
Speaker Change: Well he's still casino floor.
Speaker Change: Retail slot machine revenue increased.
Speaker Change: 17, 5% year over Q3, 2000 tons of corn driven by the additional 110 to you all soon.
Speaker Change: You'll hear me unlicensed progress up at.
All Brazilian entity Museum gaming, Brazil has advanced another country.
Speaker Change: Countries, excluding terminal Shortlisting approaches.
Speaker Change: Statewide sports betting and gaming devices.
Speaker Change: We demonstrated both operational and financial capacity and met all required criteria, placing us among 18 nine company selected at the similar level.
We are confident in our ability to successfully complete all remaining phases on the licensing process by the end of <unk>.
Speaker Change: 1024.
Speaker Change: Continued successful sponsored studios.
Speaker Change: Studios are in house I gaming development to work until June.
Speaker Change: Strong growth in industrial industry recognition in Q2.
Speaker Change: We added over 100, new partners expanding our portfolio of 250 <unk> progressed in games.
Speaker Change: Opportunity zones with Taco speeds September Youtube.
Speaker Change: Turning to two 2 million why.
Speaker Change: Why is the count from Q2 2022.
Speaker Change: Our octave player base grew 235000 in September marking is 135% increase year over year.
Revenue increased by 167% compared to Q3 2022.
Speaker Change: This quarter.
Studios launched new games, specifically designed for social casino category at explosively popular segment in the U S. P.
Speaker Change: Previous cycles, we remain fully compatible with this fast growing market as well.
Speaker Change: The studio was shortlisted or best Smart provider and rising Star Sigma Europe event.
Speaker Change: This is our position in the gaming sector.
Speaker Change: I'll close it all up.
We have now transitioned over 80% of our core operations to Atlas.
Speaker Change: Generation platform.
Speaker Change: Buckingham online consumer.
Speaker Change: Scalable micro services based architecture allows seamless deployment across major markets.
Speaker Change: Our preparations for full deployment of our system in Brazil are also underway as we advance in the country exclusive licensing process.
Speaker Change: Magnesium three in Q3.
Speaker Change: Our strong AI statement.
Speaker Change: Q3, we introduced two AI powered tools that are reshaping our user engagement through highly personalized recommendations with measurable improvements in claim activity and retention.
Speaker Change: Number one AIG.
Speaker Change: Casino the commander our system now leveraging player behavior and preferences to deliver precise game recommendations, resulting in almost 10% increase in engagement, we recommended the games and 9% boost in interactions with a new game titles.
Speaker Change: Number two.
Speaker Change: Battery commander designs on a real time sports betting does to analyze this extensive data to deliver personalized suggestions.
The individual player behaviors.
Speaker Change: It is fully integrated with our CRM tools, improving user segmentation engagement retention and player experience.
Speaker Change: Tom community bonds.
Speaker Change: In Q T. G 20 to 24 million executed 68 CSR.
Speaker Change: Initiatives across Europe.
Speaker Change: In Latin America.
Speaker Change: Reinforcing our brand community impact and driving long term shareholders.
Speaker Change: Key actions, including targeted healthcare donations educational support responsible gaming contains and environmental efforts. Additionally, the median but foundation of all of the global scholarship for the fifth consecutive year.
Now supporting thousands of top students across all markets we operate.
Speaker Change: The widening our market presence and found pipeline.
Speaker Change: In conclusion.
Speaker Change: With meridian, but we are focused on closing 2024 with a record setting performance sustained momentum into the future.
Speaker Change: I will now hand back to Brian.
Brian: Thank you sorry.
Brian: I will now finish up with the outlook for Golden matrix.
Brian: Plus we have achieved top line revenue growth and strong increase in gross margin in the third quarter and encountered some trailing one off costs incurred in the meridian based consolidation and the integration of the newly acquired classics for of course. This is now behind us and we are operating the business.
Brian: As more efficiently with a focus on reduce costs and improve profitability.
Brian: We are laser focused on implementing cost efficiency and cost rationalization across the company. This is primarily being achieved by reducing overall costs in terms of product synergies and removing redundancies.
Brian: On the operational front, we are improving sales and marketing through broader distribution increased sales and marketing and they also identifying products and distribution synergies to maximize efficiency and both higher sales with improved margins, we are optimizing our operations across the globe.
Brian: And implementing tighter cost controls we are excited about what the future holds for the business and we see a large number of opportunities ahead of us.
Brian: As mentioned, we have started the fourth quarter strongly and we are on track to set New records. We have a clear strategy a strong balance sheet and a world class team behind us and we remain confident in the company's future prospects, we are well position to settle debts as needed.
Pursue accretive acquisitions and continue to support expenses.
Strategy. Thank you everyone for joining the call.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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