- In December, Golden Matrix Group entered the B2C gaming market with the acquisition of the majority of U.K.-based skilled gaming company RKingsCompetitions Ltd.
- This month, GMGI launched an upgraded version of the platform, which gives contestants the opportunity to win cars, electronics, tools, and more
- The combination of GMGI’s B2B operations and new mix of B2C is lending to a surge in revenue and profits, reaching $8.9 million and $349,379, respectively in Q1. Q2 represents first full quarter of RKings in the financials
Gaming developer and licensor Golden Matrix Group (NASDAQ: GMGI) is a well-known and respected business-to-business (“B2B”) brand throughout the Asia Pacific region, delivering high-end white label online gaming solutions to operators. In December, the Las Vegas-based company made its foray into the business-to-consumer (“B2C”) marketplace, giving it greater exposure to a global gaming market that Naavik with BITKRAFT Ventures estimate at $336 billion.
The entrance into B2C was made through Golden Matrix acquiring an 80% stake in RKingsCompetitions Ltd., a United Kingdom-based company and leading operator of online skill-based competitions throughout the U.K. and Ireland. Prizes for RKings’ competitions include new performance cars like Audis, Mercedes, and Range Rovers, as well as upscale watches (Tag Heuer for instance), electronics, furniture, tools, and much more.
Golden Matrix, which holds rights to acquire the other 20% of RKings, onboarded a sizeable amount of revenue with the investment. RKings generated about $29 million in revenue and $2.4 million in net income during fiscal 2021 (ended October 31, 2021).
Less than six months into its ownership, Golden Matrix gave RKings a robust upgrade, launching the tournament platform with added features and functionality earlier this month. Expectations are that the new platform will increase both the monthly number of skill tournaments and participants, thus generating even stronger revenue and profit from RKings’ prize competition business. At the end of 2021, RKings had total active clients of more than 25,000 per month.
“This significant upgrade to the RKings platform will accelerate the growth of our B2C businesses, offering added functionality and features and also allowing us to expand into new geographic regions and strengthen our global footprint,” said Golden Matrix CEO Brian Goodman. “We believe the GMGI/RKings product offerings will be received enthusiastically by players in all regulated markets where we are licensed. At a time when global economic growth is being challenged, we are fortunate to have a scalable business model that has already demonstrated consistent profitability,” he concluded.
Running “skill-based” contests, as compared to those of chance or luck, are different in the eyes of regulators, with those of skill typically providing easier expansion opportunities (especially as they pertain to the United States). Golden Matrix already has Mexico clearly in its sights for as its next new market. A permit application has been submitted to Mexican authorities and the company is poised to go live with the RKings platform soon after approval is received.
In its recent press release on the RKings upgrade, Golden Matrix noted that the expansion into B2C has made an immediate impact on the top and bottom lines in the first half of fiscal 2022 (ended April 30, 2022). To that point, investors will be on the lookout for the latest quarterly report to provide a deeper dive into the effect of the acquisition. During Q1 fiscal 2022 (ended January 31, 2022), Golden Matrix posted revenue of $8.9 million, up 355% from the year prior quarter, while profits increased 570% to $349,379.
For more information, visit the company’s website at www.GoldenMatrix.com.
NOTE TO INVESTORS: The latest news and updates relating to GMGI are available in the company’s newsroom at https://ibn.fm/GMGI
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