GMGI - NASDAQ

Good day, and welcome to the Golden Matrix Group Second Quarter 2024 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] Please note today's event is being recorded. I would now like to turn the conference over to Brett Milotte, Senior Vice President of ICR. Please go ahead.

Thank you, and welcome, everyone, to Golden Matrix Group's second quarter 2024 earnings call. Joining us today is Brian Goodman, CEO of Golden Matrix Group; and

Thank you, and welcome, everyone, to our second quarter 2024 earnings call. I'm pleased to announce that this is our first earnings report since our successful combination with Meridianbet. And joining me on today's call is Meridianbet's CEO,

Thank you, Brian, and welcome, everyone. We are excited to share our strong quarterly results marked by significant achievements and promising opportunities. Let's first review Meridian's key performance indicators for this quarter, which reflect our strong performance, ongoing growth and market expansion. Revenue growth. In Q2, our revenues saw a robust increase of 11.4% compared to Q2 2023. The online segment led with 14% rise, while retail grew by 6%. Total deposits amounted to US$59.2 million, reflecting 16% growth compared to Q2 2023. The number of new online registration also increased to 136,000, marking a 17% year-over-year growth. Online casino success. The online casino sector recorded 17% revenue growth in Q2 2024 compared to Q2 2023, significantly bolstered by the addition of approximately 1,500 new games. A standard achievement in Q2 was the game Super Heli from our Expanse Studios, which ranked second in the player engagement among all others offered. This is particularly impressive given the extensive library of 6,500 games from various providers. Sports betting. Sports betting revenue, including both in retail and online, rose by 7.3% in Q2 2024 compared to Q2 2023. Despite tough outcomes in April and May, we maintained robust growth. Our online sports gross gaming revenue margin for Q2 2024 improved to 9.9%, up from 8.3% posted in retrospective of Q2 2023, thanks to targeted marketing during European soccer championship. Retail sports performance. The second quarter of 2024 retail sports gross gaming revenue margin dropped to 13% from 14.4% in Q2 2023, influenced by unfavorable football results during the month of April and May in the second quarter of 2024. However, June set a new monthly record of 16% GGR, above the average for the first half of 2024. Online casino margin. The online casino margin in Q2 2024 slightly decreased to 3.07% from 3.52% in Q2 2023. This was due to a 34% rise in amount of wagers and our expanded game library. Retail growth. Revenue from retail slot machines in Q2 2024 grew by 16% year-over-year, driven by addition of 120 new machines, enhancing our offerings and customer satisfaction. New jurisdictions. Since becoming part of Golden Matrix in April this year, Meridianbet continues to expand its global footprint. Leveraging our combined strength, we believe we are poised for a next major market entry, Brazil. As one of the select global operators with pending federal licenses, we believe we are uniquely positioned to access Brazilian substantial market projected at approximately US$20 billion with a potential player base of 106 million by 2025. We believe that this access ensures that we are well positioned to leverage potential substantial growth opportunities across one of the planet's fastest-growing betting and gaming market. Our strategic expansion hasn't stopped there, of course. We have secured our new licenses in Peru, and the iGaming industry is valued at US$1.2 billion and is growing at 6.4% annually and South Africa, where digital gaming revenue is expected to reach $828.5 million in 2024. We expect our upward trajectory to continue and believe that we are not just participating in the global gaming market. We are actively shaping it. Investment in tech and AI. This quarter has been marked by our continued investment in AI as well. That's why we are thrilled to highlight our latest innovation, an AI-powered casino game recommender that is already transforming player experiences and driving results steering wise. In just one month, we have seen 3% increase in engagement with recommended games, a 9% boost of new – for new games introduced by AI. It's innovations like this that we anticipate will keep us at the forefront of our industry and position us for continued success. I'm also pleased to announce that we have transitioned our core market operations to our new software platform called Atlas. This marks the most significant software upgrade in our history and represents the final phase of a five-year journey to completely overhaul our gaming infrastructure. With Atlas, we believe we are now positioned to compete with industry leaders like bet365 and Betano, who also utilize the latest generation software. We are on track to complete transition in all remaining countries by Q3 of 2024. Expanse Studios. Expanse Studios is making significant strides in expanding its market presence. We are in the process of entering competitive U.S. iGaming market by applying for the New Jersey casino service industry enterprise license. The application process is well underway and pending final confirmation. Additionally, we have secured a license for Bulgarian market and pursuing iLicense in Croatia and Romania. We believe that these regulatory advancements are key to expanding our footprint in Europe. Notably, Expanse Studios achieved a 30% revenue increase in Q2 2024 compared to Q1 2024, highlighting our strong performance and growth trajectory. This growth is further emphasized by our high-profile participation in major industry events such as SiGMA Americas in São Paulo, SBC North America in New Jersey and SiGMA Asia in Manila as well as completing our integration with SOFTSWISS, supporting our communities and creating impact. On the corporate social responsibility front, Meridian Group remains dedicated to making a positive impact. In the first half of 2024, we were actively engaged in various initiatives, setting us on excellent trajectory to exceed last year record of 225 CSR campaigns. Highlights include our “Scan. Help. campaign, which uses QR codes to fund essential equipment for our – for maternity hospitals in Europe; our participation in global efforts for flood relief in Rio Grande do Sul in Brazil; and our Betting Awareness initiative aimed at educating communities about our business and its potential risks. These efforts alongside donations to local children homes and environmental cleanups underscore our commitment to community support and sustainability. This report is a snapshot of the positive impact we made in Q2 2024, reflecting our ongoing dedication to social responsibility. As we look ahead, we are excited to build on these achievements and continue strengthening our market position while delivering value to our stakeholders. We are confident that the strategic initiatives and investments we've made will keep driving our growth and success in coming quarters. Thank you all for continued support and for being part of this journey. Let's keep this momentum going and move forward together. I will now turn you back to Brian.

Thank you,