MRDN — Meridian Holdings Inc.

Summary of Golden Matrix Group's Q3 2024 Earnings Call

1. Key Financial Results and Metrics:

• Consolidated Revenues: Increased by 85% to $41 million for Q3 2024; year-to-date revenue rose 55% to $105 million.
• Gross Profit: Grew 39% to $22.4 million in Q3; year-to-date gross profit increased by 24% to $61.8 million.
• Adjusted EBITDA: Reported at $4.3 million for Q3.
• Cash Position: As of September 30, 2024, the company had $38.4 million in cash and equivalents, with short-term debt of $17.5 million.
• Shareholder Equity: Increased by 60% to $94 million.

2. Strategic Updates and Business Highlights:

• Acquisitions: Completed the acquisition of Classics for a Cause, expected to enhance revenues and profits.
• Operational Performance: Continued growth in key markets, with RKings competitions recovering from previous challenges, showing an 11.1% revenue increase in October.
• Wagering Growth: GMAG platform saw wagering grow by 84% to $1.4 billion in Q3, with year-to-date wagering up 115% to $3.6 billion.
• Classics for a Cause: Contributed $2.1 million in revenues and $503,000 in EBITDA for two months of operation.
• Mixed Play Performance: Increased active players by 56% and cash deposits by 25% compared to the previous quarter.

3. Forward Guidance and Outlook:

• The company is optimistic about Q4 2024, expecting continued strong growth and operational efficiency improvements.
• Focus on cost rationalization and synergies to enhance profitability.
• Strong balance sheet and commitment to pursuing further accretive acquisitions.

4. Bad News, Challenges, or Points of Concern:

• One-off Costs: Encountered residual costs related to the Merdianbet acquisition and Classics for a Cause integration, which may impact short-term profitability.
• RKings Performance: Experienced a temporary challenge in customer acquisition that marginally affected performance, though recovery is underway.
• Market Competition: The iGaming sector remains competitive, requiring continuous innovation and adaptation.

5. Notable Q&A Insights:

• Management emphasized their commitment to cost efficiencies and operational improvements.
• Discussion around the integration of acquisitions and the expected benefits from Classics for a Cause highlighted the strategic focus on expanding revenue streams.
• Concerns were raised regarding market volatility and regulatory changes, which could impact future performance, but management expressed confidence in their strategic positioning.

Overall, Golden Matrix Group reported strong financial growth in Q3 2024, driven by strategic acquisitions and operational improvements, while also acknowledging challenges and market competition. The outlook remains positive with a focus on efficiency and growth.