Golden Matrix Group, Inc. (GMGI) reported significant changes in its financial performance and strategic direction following the acquisition of MeridianBet Group, effective April 1, 2024. The acquisition, valued at approximately $12 million in cash and $15 million in promissory notes, was accounted for as a reverse merger. This strategic move has expanded GMGI's operations in the online sports betting and gaming sectors across multiple jurisdictions.

For the three months ended September 30, 2024, GMGI's total revenues reached $40.99 million, an 85% increase from $22.21 million in the same period of 2023. This growth was primarily driven by the acquisition of MeridianBet, which contributed $15.24 million in revenues. The online casino segment also saw a notable increase, with revenues rising by 30% to $11.60 million, attributed to an expanded game offering and successful marketing campaigns.

Despite the revenue growth, GMGI reported a net loss of $3.41 million for the third quarter of 2024, a stark contrast to the net income of $3.48 million in the same quarter of 2023. The loss was largely due to increased general and administrative expenses, which rose by 82% to $23.38 million, driven by stock-based compensation, higher salaries, and professional fees associated with the acquisition.

For the nine months ended September 30, 2024, total revenues increased by 55% to $105.26 million, compared to $67.72 million in the prior year. However, net income for this period fell dramatically to $669,019 from $11.89 million in 2023, reflecting a 94% decrease. The cost of goods sold (COGS) also surged, increasing by 142% to $43.48 million, primarily due to the integration of MeridianBet's operations.

In terms of strategic developments, GMGI has also entered into agreements to acquire an 80% stake in Classics Holdings Co. Pty Ltd., further diversifying its business model. The company is focusing on expanding its B2B and B2C segments, leveraging proprietary technology and enhancing its product offerings.

As of September 30, 2024, GMGI's total equity stood at $94.25 million, up from $59.03 million at the end of 2023. The company has also increased its authorized common stock to 300 million shares, reflecting its growth strategy and potential for future capital raises.

Overall, while GMGI has experienced substantial revenue growth following its acquisition activities, it faces challenges in profitability and rising operational costs, which will require careful management moving forward.