By M. Marin
READ THE FULL GMGI RESEARCH REPORT
Stability sheet strengthened with debt discount
Golden Matrix Group (NASDAQ:GMGI), an iGaming group offering a broad array of gaming merchandise and software program options on a B2B and B2C foundation, strengthened its steadiness sheet by paying down debt. The corporate had issued Lind World Asset Administration a $12.0 million secured convertible word in July 2024. GMGI subsequently has made month-to-month funds on this word by means of money and share funds and absolutely repaid it this week, with a current $7.2 million cost to cowl the steadiness that remained as of April 28, 2025. GMGI incurred no prepayment penalties by repaying this word earlier than it got here due.
The debt reimbursement was funded utilizing money available, with no share issuance. We consider the elimination of this debt enhances the corporate’s monetary flexibility to help its a number of development initiatives. The corporate had money and equivalents of $30 million at year-end 2024.
Along with debt discount, the corporate’s capital allocation technique additionally features a share repurchase plan. GMGI’s aim is to keep up adequate liquidity and monetary flexibility to fund operations and development. The corporate has additionally enhanced its monetary flexibility with an ATM settlement. Because it implements anticipated development measures, GMGI intends to prioritize enlargement into new regulated markets, together with Latin America and Europe, improve AI-driven gaming innovation and increase operational efficiencies. As GMGI has performed previously, the corporate intends to pursue strategic acquisitions to spice up market share, broaden product choices and complement natural development. To fund acquisitions, the corporate has used a mixture of money and shares, in addition to earnouts.
The debt discount comes as GMGI is seeing sturdy momentum in its underlying enterprise, reflecting business enlargement and its development measures. The corporate generated 81% and 63% year-over-year income development in 4Q24 and full yr 2024, respectively, to $46 million and $151 million. Professional forma foundation for the mixing of Meridianbet, natural development was roughly 20%. Fueled by AI-powered engagement instruments and content material enlargement, wagering quantity on the GMAG B2B gaming platform elevated 84% to $4.7 billion.
…And strengthening capabilities with new recreation options
GMGI operates a rising portfolio of manufacturers and continues to broaden its capabilities and attain for its total portfolio. For instance, Meridianbet lately launched a brand new cell function, Watch & Wager, which permits customers to stream reside sports activities in full-screen mode and concurrently place in-play bets and is designed to spice up in-play betting quantity, lengthen session length, and drive greater income per lively consumer. That is in keeping with the corporate’s technique to proceed so as to add excessive margin options to its platform and improve revenues and working leverage. As well as, Expanse Studios introduced a brand new distribution settlement with BetConstruct and likewise attained recreation certification in Brazil.
…And distribution agreements to increase attain, increase income, broaden margins
Expanse Studios is GMGI’s iGaming division specializing in slots, crash video games, desk video games, and different associated options. Expanse has an increasing portfolio of greater than 55 proprietary video games. Expanse introduced a brand new distribution settlement with BetConstruct, which is able to allow distribution of Expanse Studios’ video games by means of BetConstruct’s B2B community, which administration notes reaches lots of of operators in regulated markets globally, together with superior entry to U.S. sweepstakes and social on line casino operators, the place GMGI’s portfolio is already reside in over 40 states. The U.S. sweepstakes market was estimated at $5.6 billion in 2023, with projections to achieve $7 billion to $11 billion by 2025, in line with varied forecasts. The BetConstruct alliance is predicted to strengthen Expanse’s attain throughout the U.S. market and is in keeping with GMGI’s technique to broaden its footprint with out having to rely upon third-party content material. It’s also anticipated to extend the corporate’s recurring income and contribute to margin enlargement.
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