Golden Matrix Group Inc (GMGI) 2025 Q3 法說會逐字稿

Thank you. Good morning, everyone. Welcome to Golden Matrix Group's third-quarter fiscal 2025 earnings call. We appreciate you joining us today.

On today's call are Brian Goodman, CEO of Golden Matrix Group; Zoran Milošević, CEO of Meridianbet Group; Rich Christensen, CFO of Golden Matrix Group.

At the conclusion of the call, the recording and supporting resources will be available on Golden Matrix Group's IR 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, 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. For a complete discussion of these factors, please refer to our most recent 10-K filing and other public disclosures.

Non-GAAP measures will be discussed. Reconciliation of these matters of these numbers can also be found in our recently filed 10-K and earnings press release available on our website.

I will now hand it over to Brian Goodman, CEO of Golden Matrix Group.

Good morning, everyone. And thank you for joining us.

Golden Matrix delivered another strong quarter, achieving record revenue of $47.3 million, up 15.4% year over year; and marking a return to profitability, with net income of $0.4 million. This performance underscores the resilience of our diversified business and the scalability of our platform across multiple markets.

Our focus on disciplined execution and operational efficiency is paying off, with gross profit rising to $26.4 million, at a 56% margin; and adjusted EBITDA growing 32% to $5.7 million. Across the business, we continue to see strong engagement and organic growth, particularly in Latin America and other regulated markets where we are expanding rapidly.

With that, I'll hand things over to our CFO, Rich Christensen, to walk you through our financial and operational highlights for the quarter.

Thank you, Brian.

Total revenue for the third quarter of fiscal 2025 was $47.3 million, up 15.4% year over year from $41 million, driven by continued growth in online casino and raffle operations. Revenue growth includes a 3% benefit from currency exchange rates. Organic revenue increased 14% year over year.

Gross profit increased to $26.4 million, representing a 56% margin, up 111 basis points year over year, reflecting marketing optimization and an improved product mix. We reported net income of $400,000 compared to the net loss of $3.3 million in the same quarter last year, marking a return to profitability.

Adjusted EBITDA rose 32% year over year to $5.7 million, representing a 12% margin. This was supported by discipline cost management and operating efficiency.

Our balance sheet remains strong, with $22 million in cash and total debt of $45.1 million. We have a net debt leverage ratio of 1.2 times, trailing 12-month adjusted EBITDA at quarter end.

Now, I'd like to turn the call over to Zoran Milošević, CEO of Meridianbet, to provide an update on Meridianbet's performance and strategic initiatives. Zoran?

Thank you, Rich.

Meridianbet delivered strong year-over0year growth in Q3, with revenue up 26% to $32.5 million. Online casino GGR rose 30% to $14.6 million, driven by 35% increase in turnover and the launch of over 2,500 new games. Sports betting revenue grew 25% to $13.3 million, while retail casino revenue increased 17% to $3.7 million.

Player activity remained robust across all markets. Depositors rose 25%. New registrations surged 70%. First-deposit transactions jumped 87% quarter over quarter, fueled by expansion in Brazil. Online active users grow 21%. Sports revenue per player in our top 3 markets climbed 29%. Casino turnover per player also increased 29% to [$4,147], reflecting strong engagement and content appeal.

We also introduced [Meridian Missions], our proprietary gamification feature to boost retention, alongside enhanced responsible gaming tools, to support sustainable compliant growth.

Meridianbet's robust financial performance has been a key driver of our consolidated growth trajectory this year. Their disciplined executions, scalable infrastructure, and strong market positioning have translated into meaningful top-line acceleration and margin expansion.

As we enter to the fourth quarter, I remain confident that the Meridianbet will continue to deliver outside contributions, reinforcing our operating leverage and meeting our full-year financial targets.

With that, I'll turn it back to Rich.

Thank you, Zoran. Those results from Meridianbet continue to demonstrate the strength of our diversified portfolio.

Now, let me walk you through the performance of our other key business units.

First, RKings delivered another strong quarter in Q3, maintaining steady growth across acquisition, engagement, and order value. New users increased 19% quarter over quarter, with conversion holding at a strong 84%. Order volumes were up 8%. Average order value rose 10%, driving more spend per customer and higher overall activity.

A major highlight came in August of 2025 when RKings recorded a record-breaking sales day, generating [GBP361,000] in gross sales from over 31,800 orders. Over 3,500 new users joined that day, with over 3,000 making purchases.

The [GBP400,000] or 2024 Lamborghini Realto competition was a standout success, attracting 42,000 entrants, selling 291,000 tickets, and producing 580,000 pounds in total order value. This campaign showcases RKing's ability to combine scale, engagement, and strong purchase intent to deliver exceptional results.

Next, Classics for Cause rebounded sharply in Q2, achieving strong sequential growth in user acquisition and engagement. New user registrations rose 72% quarter over quarter. New VIPs climbed 82%, highlighting effective targeting and reactivation efforts. Conversion held steady at an impressive 94%, while average transaction value increased 21%. Average revenue per paying user rose 6%, signaling healthier customer spending patterns.

Complementing this rebound, the August [Hold 'em Toronto] campaign set a new business record, generating $776,000 in sales over 10,000 packages, attracting over 1,700 new customers.

Turning to GMAG, who reported stable Q3 revenue of $3.5 million, which was slightly below Q2's $3.6 million, this reflected a planned transition phase, as we build momentum in key markets. Sales in emerging regions rose over 40%, driven by strong growth in Brazil and Mexico, underscoring demand for localized gaming content. We onboarded 12 new providers to the GMAG aggregator, leveraging AI-powered integration and improving scalability and personalization. These enhancements are expected to support a 10% increase in operator counts over the coming quarters.

Finally, MexPlay generated record quarter-over-quarter performance, with net gaming revenue improving 42% from last year. Registrations and new user deposit metrics were our standout areas, with total registrations at 38% quarter over quarter showing strong acquisition and onboarding effectiveness. Reduced withdrawal levels and higher net revenue generated as a percent of deposits signal healthier engagement and margin trends heading into Q4.

As we enter the fourth quarter, we are tightening our full-year revenue guidance to $186 million to $187 million, representing 23% to 24% year-over-year growth; and expect Q4 revenue between $52.7 million and $53.7 million, up 15% to 17% year over year.

The third quarter was a record quarter, underscoring the strength of our operating model, disciplined execution, and scalable platform. Our performance reflects a resilient business focused on profitable growth, operational efficiency, and expanding in regulated markets.

As we enter Q4, we are well positioned to drive continued growth and marginal improvement across all segments.

With that, I'll turn it over to Brian to wrap up the call.

Thank you, Rich.

Golden Matrix is entering a pivotal stage in its evolution as a global leader in iGaming. Our core businesses remain strong. We continue to build on a foundation of consistent performance, operational excellence, and international growth.

This quarter's results highlight our financial resilience and the scalability of our business model. We remain focused on long-term profitable expansion driven by innovation, disciplined execution, and a growing presence in regulated markets.

As we look ahead, we are energized by the opportunities before us. We remain committed to delivering sustained value for our shareholders through strategic growth and technology leadership.

Thank you to our team, our partners, and investors for your continued support. The best is yet to come.

This concludes today's program. Thank you for your participation. You may disconnect at any time.