LAS VEGAS, NV, based company Golden Matrix Group, who’s a developer and licenser of gaming platforms, systems and gaming content, announced last week record Q1 revenues of approximately $8.88M USD which represents a significant 355% in growth YoY. Also did this while holding onto net income profitability (~$350K USD) for the fourteenth consecutive quarter with help from their most recent completed acquisition; RKings competitions. Golden Matrix purchased 80% of controlling interest in RKings Competitions at the beginning of Q1. This new acquisition enters Golden Matrix into the business-to-consumer (B2C) side of the markets to go along with their already well established B2B side of business that’s mainly located in the Asia Pacific Islands, but looking to expand into new territories.
RKings www.rkingscompetitions.com is one of Irelands/United Kingdoms leading independent online competition companies with nearly 500k social media followers via Facebook, and Instagram. They also had 33K+ participants during their first quarter of the year. If they could double these participants over the next couple of quarters they could double their revenues. Their platform in a nutshell, is a competition where you must answer a simple multiple choice question before you can purchase lottery tickets to potentially win the prizes offered on their website. They raffle many different luxury items such as automobiles, watches, vacation packages and even a few homes. The odds of winning these competitions turn out to be much greater than winning equivalent prize money of the same value on a scratch off lottery ticket.
According to Golden Matrix’s FY23 Q1 financial report, RKings Competitions did quite well and produced nearly $5.5M USD of revenues coming out on top with bottom line profitability. This also brought another quarter of increasing revenues for Golden Matrix that puts them trailing over $18.2M USD in sales over the past 12 months. I believe with the strong and dedicated leadership from Golden Matrix’s CEO Anthony Brian Goodman, and the massive industry potential, this company is poised to continue growing at a fast rate. Especially with having a strong balance sheet with nearly no debt and sitting cash heavy with over $15M USD in the bank for further synergistic acquisitions. There’s a very strong chance this company continues to strategically build, while staying cash positive or close to it, which separates themselves from the rest of the heard, that continues burning loads of cash and needing to constantly raise more capital by selling new shares (aka Dilution) just to make ends meet due to their funds dissolving from high operating costs while continuously producing a net loss on a quarterly/yearly basis. This is what I like most about this investment, a determined CEO that wants to grow this company conservatively without taking on massive debt and quarterly net losses.
In early March 2022, Golden Matrix applied for a B2C Mexican gaming license and mentioned once approved, they expect to offer iGaming casino and launch of the RKings tournament platform into the country of Mexico which has about a population of about 130 million people. This may be genius, because expanding into this projected emerging market could and should bring Golden Matrix/RKings Competitions an incredible amount of overall growth over the next 3-5 years time frame based off what market analysts are projecting.
“Mexico Gambling Market is anticipated to grow with a CAGR of 33% during 2020-2026.The Mexico gambling market has been growing significantly owing to the changing lifestyles and rise in purchasing power of consumers. The increasing adoption of smartphones and rising penetration of the internet which provides easy access to online casino gaming platforms are also driving the market. The outbreak of the COVID-19 pandemic led to a decrease in market revenues in the year 2020 owing to the closing of land-based gambling platforms due to the pandemic. However, the market is expected to register growth in the forecast period.”
https://www.globenewswire.com/news-release/2021/05/19/2232288/28124/en/Mexico-Gambling-Markets-Report-2021-Featuring-1xBet-Bet365-Caliente-Casino-Codere-Group-Intertops-Interwetten-Winland-Group.html
With the Mexico Gambling Market anticipated to grow at an incredible CAGR of 33% this seems like a very promising location to integrate raffle competitions and online casino, which can therefore establish a strong foothold in this new territory for Golden Matrix. Just for a comparison on how high a CAGR of 33% is for this sector, the U.S. Online Gambling Market is projected to register a CAGR of around 17% between 2021-2026 which is large, but Mexico is nearly double at 33%. So bottom line here is, expansion into Mexico sounds very promising for creating significant amounts of future growth and of course more company value.
On the other side of things, Business to Business (B2B), Golden Matrix provides turnkey solutions, and white label content to build everything required to startup an online casino. Basically Golden Matrix will convert your land based brick and mortar casino to online free of charge and just receive a royalty payment monthly off of the casino usage and success. Also Golden Matrix acquired an aggregator platform from an Australia based company named Gamefish Pty around a year ago and has been integrating all sorts of other cutting edge gaming technology and sports book onto it including Amelco, Playtech, Caleta, SpearHead Studios, Fantasma, and Scout Gaming just to name a handful of the many over the past year. It seems with the B2B division of the business their goal is to offer the best content available to grow their current 580+ operators and keeping their 6,000,000+ end users satisfied. The better an operator (Online Casino) does by growing the number of active users and maximizing player extraction, the better Golden Matrix does with their royalty payments. Also their goal is to convert more brick and mortar casinos to the online world throughout the Asia Pacific Islands and break into other developing countries and continents as smart phones/cellular networks grow more powerful and become more readily available.
Bottom line here, this company continues to separate themselves from all of the cash burning small cap stocks that continue to get no respect. $GMGI Golden Matrix just got approved for NASDAQ and are waiting for their start date which is imminent. Check this company and their amazing accomplishments out!
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