MeridianBet clocks 25% revenue growth in 2023 ahead of proposed acquisition by Golden Matrix

Business-to-consumer (B2C) online gaming business MeridianBet Group said it has achieved about 25% revenue growth in 2023 compared with revenue growth of 24 percent in the prior year. EBITDA (earnings before interest, taxes, depreciation, and amortization) and net profit grew around 10% and 6% respectively from 2022.

The company attributed the growth to new product offerings and continued expansion into regulated jurisdictions. The growth numbers were revealed ahead of the impending acquisition by Golden Matrix Group, now anticipated to conclude by the end of the first quarter.

Meridian said its new proprietary gaming platform, Atlas, successfully rolled out in 40 percent of all territories while it launched seven new slot games. WinGo, a new numbers game created by Meridian's Expanse Studios, generated ticket sales of about $2 million in November, which is a 55.4% increase on $1.28 million recorded in September, the company said. It also launched partnerships with 36 new media outlets and integrations with six new online casino platforms.

As a founding member of the European Organization for Gaming Law (EOGL) based in EU capital Brussels, Meridian will be involved in legislative and regulatory discussions and play a key role in shaping industry standards EU and worldwide, the company said.

Meridian currently operates in 15 jurisdictions across Europe, Africa, and South America. A significant addition includes Kenya, one of the largest gaming markets in Africa; and the company said it expects a license to operate in South Africa to be granted to Meridian in Q1 '24.

In light of Brazil's recent approval of regulatory measures, Meridian is actively pursuing a Brazilian gaming license. The company, having established fully operational Casino and Sportsbook ventures in the country, has taken a significant step by submitting an expression of interest as the initial move in the licensing process. The online gambling market in Brazil is poised to achieve a revenue of US$1.97 billion by 2024, with sustained annual growth projected at 16.51% from 2024 to 2028.

“We are extremely pleased with our strong year-on-year operating results and continued expansion into new regulated markets. We are especially excited about the recent legislation for online casino and sportsbook in Brazil one of the world's largest gambling markets. We look forward to the completion of the acquisition by Golden Matrix, now expected in the first quarter of 2024, and how the combined company will offer state-of-the-art B2B and B2C gaming platforms in multiple jurisdictions worldwide. The completion of this acquisition will drive long-term value for all our stakeholders as we benefit from economies of scale and from both companies' historical revenue and profit growth,” Zoran Milosevic, CEO, MeridianBet Group, said.

The acquisition deadline underwent multiple revisions. In October, Golden Matrix Group made further amendments to its acquisition agreement to extend the closing date and make modifications to the financial terms of closing. The change in the financial terms now permits using up to $20 million from MeridianBet Group's available cash to cover a part of the $30 million cash payment by Golden Matrix upon the transaction's closure, subject to approval by the sellers.

In July, the companies entered into an amended and restated purchase agreement under which cash to be paid by GMGI at the closing of the deal had been reduced from $50 million to $30 million, with a further $20 million in non-contingent cash consideration due post-closing.