- Golden Matrix Group recorded revenue growth of +355% YoY in 1QFY22, the highest growth rate within the online gaming sector
- Golden Matrix attributed part of the increase to strong revenue contributions from UK-based RKingsCompetitions Ltd, which it purchased an 80% stake in as of November 2021
- RKings has emerged as one of the UK’s largest online competition companies, reporting revenues of over $32 million last year
- The acquisition of RKings bodes favourably for GMGI’s bid to further expand their B2C segment whilst geographically diversifying their revenue stream away from their traditional Asia-Pacific based B2B clientele
The online gaming market is on a roll. In the first quarter of FY2022, online gaming providers on averages saw their revenues rise by 24 percent year-over-year; however, that belied the true picture, with median growth rate for the sector rising by 6 percent relative to the first quarter of FY2021. Rather, the results were skewed by rapidly growing outliers, no more than that recorded by Golden Matrix Group (NASDAQ: GMGI), a developer and licensor of online gaming platforms, systems, and gaming content. Golden Matrix Group reported 1QFY22 revenue growth of 355 percent year-over year, over twice the rate of the next fastest growing company within the sector and outpacing the likes of betting industry stalwarts such as Penn Interactive Gaming, Flutter US, and DraftKings (https://ibn.fm/H9xVS).
Golden Matrix Group saw its revenues rise to $8,482,743 million for the second quarter, with net income rising to $586,984 over the same interim, a significantly increase relative to the $127,986 recorded in the equivalent period a year ago (https://ibn.fm/SM2Qv). Golden Matrix Group attributed part of the significant increase in year-over-year revenues to the 28% increase in GMGI’s B2B segment’s top-line, in addition to strong revenue contributions from RKings. Golden Matrix Group acquired an 80 percent controlling stake in UK-based RKingsCompetitions Ltd in November 2021, with the company said to contribute approximately 60 percent of GMGI’s total revenues in the quarter.
With active clients of more than 15,000 per month and having generated revenues of upwards of $32 million USD in their most recent fiscal year ending October 31, 2021, RKings has established a robust reputation as one of Ireland’s and the United Kingdom’s leading independent online competition companies. The firm operates a prize competition business offering customers in Ireland and the United Kingdom paid for entry, and free entry, routes to enter prize competitions to win a range of consumer products as prizes.
In mid-May and following their recent stake acquisition, GMGI announced that they would be launching a robust upgraded Tournament Platform with added features and functionality for RKings’ players in Ireland and the United Kingdom; the upgraded platform is expected to increase both the monthly number of skill tournaments and participants, thus generating even stronger revenue and profit from RKings’ prize competition business. Moreover and as it is highly scalable, the platform can be introduced into other regulated markets with GMGI planning to go live with the platform in Mexico once its Mexican gaming permit has been approved.
“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 during a recent interview (https://ibn.fm/UlZnz). “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.”
Providing Golden Matrix with both, the means to diversify away from their traditional revenue base – historically comprised of licensing fees received from gaming operators located in the Asia Pacific region, as well as growing out its relatively nascent B2C business segment, the acquisition of RKings alongside the ongoing organic growth recorded within GMGI’s core business bode favourably for the company’s prospects going forward.
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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