Meridian Holdings, Inc. Q2 FY2024 earnings call

• Successful combination with Meridianbet. Second quarter consolidated revenue grew 75% to $39.4 million, net income was $15,000, consolidated adjusted EBITDA was $5.4 million. Balance sheet healthy with over $40 million in cash and equivalents as at 31st of July, net debt leverage ratio of only 1.6, shareholder equity grew 52% to $89.7 million.
• R Kings Competitions posted record second quarter results with revenue growth, player acquisition, and low acquisition costs.
• GMAG focused on improving gross margins by distributing Expanse games, adding crash games, and implementing AI and loyalty systems.
• MexPlay showed solid growth trends with increased cash deposits, wagering, and gross gaming revenues.
• Meridianbet had strong performance in various segments including revenue growth, online casino, sports betting, retail, and continued global expansion with new market plans and tech investments.

R Kings Competitions

• Second quarter revenues of over $9.6 million, an increase of over 43% over last year.
• Players total 386,000 as of 30 June 2024 and over 53,000 new players have been acquired year-to-date. Acquisition costs remain at a very low level of only $7.60 per player. Total active players now total 140,000. Over 5 million tickets have been sold year-to-date through 1.1 million purchases.

GMAG

• Second quarter wagering grew by 124% to $1.2 billion, and year-to-date wagering also increased by staggering 141% to $2.2 billion.
• Second quarter gross gaming revenue generated on the GMAG platform grew by 187% to $38 million, and year-to-date growth gaming revenue on the GMAG system grew by 186% to $68 million.
• Now have over two million active players on the GMAG system, and continue to sign new operators on a regular basis. Implementing AI tools and state-of-the-art loyalty systems into the GMAG system.

MexPlay

• Monthly average of over 9,000 active players.
• Second quarter cash deposits increased 297% to $1.2 million.
• Second quarter wagering grew by 100% to $9.3 million, and gross gaming revenues grew by 154% to $422,000.

Meridianbet

• Q2 revenues saw a robust increase of 11.4% compared to Q2 2023. 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. Number of new online registration also increased to 136,000, marking a 17% year-over-year growth.
• Online casino sector recorded 17% revenue growth in Q2 2024 compared to Q2 2023, bolstered by addition of approximately 1,500 new games. Online sports gross gaming revenue margin for Q2 2024 improved to 9.9%, up from 8.3% in Q2 2023. Retail sports gross gaming revenue margin dropped to 13% from 14.4% in Q2 2023, but June set a new monthly record of 16% GGR. Online casino margin slightly decreased to 3.07% from 3.52% in Q2 2023. Revenue from retail slot machines in Q2 2024 grew by 16% year-over-year, driven by addition of 120 new machines. Since becoming part of Golden Matrix, Meridianbet continues to expand globally, with plans for market entry in Brazil, Peru, South Africa, etc.

• Targeted annual revenues of over $150 million per annum and adjusted EBITDA of over $13 million per annum by 2025.
• Plan to continue to scale the company via acquisitions and by investing in new markets in order to expand our global footprint.
• Continue to take a disciplined approach towards M&A, deploying capital towards profitable, cash positive and robust businesses.
• Expect continued and sustainable double-digit growth with healthy margins.

• Statements made on the call may constitute forward-looking information subject to a number of risks, uncertainties and other factors outside the company's control, such as market and economic conditions, business prospects or opportunity, future plan or strategy, technological development and anticipated events, trends and regulatory changes that may affect the corporation and its subsidiaries and respective customers, industries, which could cause the actual results, performance or achievement of the company to be materially different.

Q: Operator: 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.

A: Q: Operator: This concludes today's conference call and webcast. You may now disconnect your lines.

A: