EveryMatrix has detailed a strong performance across its three main business verticals during the first nine months of 2021, outlining plans for further investments to support its US expansion.
Publishing its interim 2021 trading report (Q1-Q3 2021) – the B2B gaming technology provider reported year-on-year gross profits of €37.6 million, an increase of 35%, as Q3 registered a profit increase of 46% on 2020 comparatives to €12.6 million.
Period EBITDA increased by 77% YoY to €14.8 million. During Q3, EveryMatrix registered a 12% EBITDA increase to €4.4 million, reflecting an EBITDA margin of 34%, whilst net cash stood at €7.7 million.
Key events during Q3 included an expansion of EveryMatrix’s US operations via agreements with Resorts Digital Gaming and Kindred Group, as well as the launch of Tier-1 client winnmasters into regulated markets such as Greece, utilising its full sports, casino and platform suite.
A unit by unit breakdown saw sports revenues increase steadily during 2021, having slumped significantly the year prior to due cancellation of major tournaments and increasing to nearly €4 million by the end of the nine month period with EBITDA of just under €2 million.
The group lauded ‘several client-led product releases during the quarter’ and a return to normal sporting schedules in the third quarter, as well as continued investment in a ‘high-quality development team’ and consistent product upgrades for its clients as reasons for its 2021 sportsbook recovery.
Product initiatives that were singled out in particular were the OddsMatrix Sports Betting Data Solution, developed to enable EveryMatrix clients to ‘control and define’ odds and payout levels’, and 360° marketing and operational support Managed Services offering.
For casino, regulatory headwinds in Germany as a result of the implementation of the Fourth Interstate Gambling Treaty resulted in the country accounting for 24% of EveryMatrix gross gaming revenue in Q3 2021 in comparison to 50% in Q3 2020.
Despite its German headwinds, EveryMatrix affirmed that ‘overall strong positive earnings’ have provided ‘further scope for investment’ in its casino product, with gross profit of €6 million.
Boosting its commercial pipeline, a total of 70 proprietary exclusive games were launched, with 22 released via EveryMatrix RGS in Q3 2021, with investment in vendor integrations and content for clients occurring throughout the year.
“The strong financial performance this quarter confirms our ability to deliver on the growth strategy we have set out,” said Ebbe Groes, Group CEO of EveryMatrix.
“In the Casino segment, we saw a significant impact of the regulatory changes in Germany, where EveryMatrix is particularly strong. But the diversity of our client base as well as our well-balanced product portfolio means that this nine-month period is still strongly up on the year before.”
Lastly, EveryMatrix’s platform operations recorded gross profit of close to €3 million by the conclusion of the third quarter – in comparison to ‘close to zero’ in Q3 2020 – bolstered by reduced operating costs and ‘increased effectiveness’ as a result of a restructuring.
This reorganisation saw the integration of MoneyMatrix into the GamMatrix product offering, as well as the launch of 16 payment integrations covering 42 payment methods into the wider platform service.
“We continue to expand footprint by attracting Tier-1 clients through our compelling product offering consisting of highly scalable and modular software platforms and solutions,” Groes continued.
“A key part of our growth strategy is to have a well-balanced portfolio comprising our three business segments, Casino, Sports, and Platform. This mix enables us to have a healthy split of revenues. The importance of this strategy is clearly demonstrated by this quarter’s results.”
Moving forward, EveryMatrix stated its intent to expand withing the US sports betting and gaming market. The technology group was able to secure a foothold in 2021 via agreements with Resorts Digital and Kindred as well as payments partnerships with Nuvei and PXP Financial.
Commenting on the firm’s North American plans, Groes remarked: “Our expansion plan for the highly attractive US market is progressing very well. We now have an office, an experienced team, a pipeline that is delivering sales, and we continue to advance with the licensing process.”