Golden Matrix Group Inc (GMGI)

Golden Matrix Group Inc. (GMGI) - A Comprehensive Overview

Company Profile:

History and Background: Golden Matrix Group Inc. (GMGI) is a Nevada-based company incorporated in April 2015, previously named Golden Matrix Solutions. It started as a holding company then transitioned to its current focus on online sports betting, online casino gaming, and interactive entertainment. GMGI is involved in the development, licensing, and provision of technology platforms, marketing services, and consulting for the online gaming industry.

Core Business Areas:

• R Kings Sports: Develops, integrates, and markets wagering solutions across land-based and online platforms in the US.
• R Kings Casino: Offers casino-related products and services.
• Game Play Network: Delivers advanced marketing, consulting, and operational solutions to online and land-based gaming businesses.

Leadership and Corporate Structure:

• CEO: Bahram Kazemi
• President and CFO: Michael Campagnuolo
• Chairman of the Board: Michael Campagnuolo
• COO - GamePlay Network: James Marshall
• VP of Product - Game Play Network: David Marshall
• Executive Vice President at R Kings Casino: Alex Cohen
• VP of Operations at R Kings Casino: Anthony Esposito
• Executive Vice President at R Kings Sports: David Marshall
• VP of Sales at R Kings Sports: James Marshall

Top Products and Market Share:

Products and Offerings:

• R Kings Sports & Casino platform, providing sports and casino betting solutions for both US and international markets.
• R Kings Live dealer casino platform.
• Game Play Network's suite of marketing solutions for online and land-based gaming.

Market Share: GMGI does not publicly disclose its market share for specific products. However, the online gambling market is estimated to reach a value of $187.4 billion by 2025, growing at a CAGR of 12.61%.

Product Performance and Market Reception:

• R Kings Platform: Received positive feedback in the industry, notably featured in SBC Leaders Magazine.
• Game Play Network: Has experienced growth, particularly in the sports betting area.
• R Kings Casino: Still in early development stages.

Competition: Major competitors include DraftKings (DKNG), Penn National Gaming (PENN), and Flutter Entertainment (FLTR).

Total Addressable Market:

The global online gambling market is estimated at $72.28 billion in 2023 and is projected to reach $127.10 billion by 2027, indicating significant growth potential. Within this, the online sports betting market alone is expected to grow to $37.31 billion by 2027.

Financial Performance:

Recent Financial Highlights:

• As of Q1 2023, GMGI reported total revenue of $397,437, a decrease of 16% from Q1 2022.
• The company incurred a net loss of $4,384,114 in Q1 2023.
• Gross profit margin stands at 56%.
• EPS (earnings per share) was negative, at -$0.12 in Q1 2023.

Financial Performance Comparison:

• Revenue and EPS declined year-over-year compared to Q1 2022.
• Gross profit margin improved from 42% in Q1 2022, indicating better cost management.

Cash Flow and Balance Sheet:

• The company has negative operating cash flow as of Q1 2023.
• GMGI has $3.39 million in cash and cash equivalents and $2.54 million in total assets.

Dividends and Shareholder Returns:

Dividend History: Golden Matrix currently does not pay dividends.

Shareholder Returns:

• Year-to-date returns (as of November 6, 2023) are negative (-30.84%).
• 1-year returns are -86.51%.
• 5-year returns are unavailable due to insufficient data.

Growth Trajectory:

Historical Growth: GMGI has experienced fluctuating revenue growth in recent years.

• 2020 revenue: $2.3 million
• 2021 revenue: $27.4 million (significant increase)
• 2022 revenue: $8.3 million (substantial decrease)

Future Growth:

• GMGI's growth will depend on its success in expanding its product offerings and entering new markets.
• The company's recent partnership with Game Play Network will be key in driving its growth, aiming to acquire new clients within the sports betting industry.

Market Dynamics:

Industry Overview: The online gambling market is experiencing rapid growth driven by increasing internet penetration, growing demand for convenience, and favorable regulations in different jurisdictions.

GMGI's Position: GMGI is a relatively small player in the online gambling market. The company's success will depend on its ability to differentiate itself from competitors and gain market share.

Competitors:

• DraftKings (DKNG): Market share of 16.3%, offering online sports betting and daily fantasy sports.
• Penn National Gaming (PENN): Market share of 13.4%, primarily focused on land-based casinos but has expanded into online sports betting.
• Flutter Entertainment (FLTR): Market share of 9.6%, a global online gambling company offering various products, including sports betting, casino, and poker.

Competitive Advantages and Disadvantages:

Advantages:

• Proprietary R Kings Platform offering sports betting and casino solutions.
• Strong partnership with Game Play Network, expanding reach within the industry.
• Experienced leadership team.

Disadvantages:

• Relatively small company with limited brand recognition.
• Lack of established market share compared to larger competitors.
• Negative cash flow and operating income.

Potential Challenges and Opportunities:

Challenges:

• Intense competition in the online gambling market.
• Regulatory uncertainty and challenges in obtaining licenses in different jurisdictions.
• Dependence on technology and potential disruptions.

Opportunities:

• Expansion into new markets with favorable regulations.
• Development of innovative new products and services.
• Strategic partnerships and acquisitions to enhance market position.

Recent Acquisitions:

• Game Play Network (2021): Acquisition aimed at enhancing GMGI's marketing capabilities and client acquisition within the sports betting industry.

AI-Based Fundamental Rating:

AI Rating: 4/10

Justification:

• The rating is based on the analysis of various factors including financial performance, market position, and future growth potential.
• GMGI faces several challenges due to its small size, negative cash flow, and limited market share.
• However, the company has opportunities for growth through market expansion and new product development. The recent partnership with Game Play Network could positively contribute to future success.

Note: The AI rating is based on publicly available information and should not be considered financial advice.

Sources and Disclaimers:

Sources:

• Golden Matrix Group Inc. Investor Relations Page: https://gmgi.com/investors/
• Yahoo Finance: https://finance.yahoo.com/quote/GMGI/
• Statista: https://www.statista.com/
• Market Research Reports: https://www.grandviewresearch.com/
• SEC filings: https://www.sec.gov/edgar/search/#/

Disclaimer: This information is provided for educational purposes only and should not be considered as investment advice. Investing in stocks involves risk, and you should always conduct your own research before making any investment decisions.