v3.25.2
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 6 Months Ended
Jun. 30, 2025
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION  
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

NOTE 19 – SEGMENT REPORTING AND GEOGRAPHIC INFORMATION

 

The Company operates its business through three operating segments – MeridianBet Group, GMAG, RKings & CFAC (discussed in greater detail below), which are based on its business activities and organization. The reportable segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources as well as in assessing performance.

The Company’s chief operating decision maker is a management function comprised of two individuals. These two individuals are the Company’s Chief Executive Officer and MeridianBet Group’s Chief Executive Officer. The Company’s chief operating decision makers and management utilize revenues and operating income as the primary profit measures for its reportable segments.

 

The Company’s three reportable segments are as follows:

 

·

MeridianBet Group – This segment includes revenues from retail sports betting, retail casinos, online sports betting, online casinos, and bars operated by MeridianBet Group companies across Serbia, Bosnia, Montenegro, Africa, Central and South America, and other European regions.

·

GMAG – This segment generates revenue through the Company’s intellectual property and the resale of third-party gaming content, primarily serving customers in the Asia-Pacific region.

·

RKings & CFAC – This segment includes revenues from pay-to-enter prize competitions and trade promotions, conducted through RKings in the UK and Classics for a Cause in Australia.

 

In addition to these reportable segments, the Company has certain corporate costs that are not directly attributable to its brands and, therefore, are not allocated to its segments. Such costs primarily include certain share-based compensation, and holding company expenses including administrative, legal fees, audit fees, and filing fees. In addition, certain other costs are not allocated to segments, including impairment costs, and restructuring costs which include charges or expenses attributable to acquisition-related costs. The segment structure is consistent with how the Company’s CODM plans and allocates resources, manages the business and assesses performance. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.

 

The following table presents the key performance information of the Company’s reportable segments:

 

 

 

For the six months ended

 

 

 

June 30, 2025

 

 

 

MeridianBet Group

 

 

GMAG

 

 

RKings & CFAC

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$56,934,460

 

 

$7,471,339

 

 

$21,562,622

 

 

$85,968,421

 

Cost of revenue

 

 

(16,574,445)

 

 

(5,193,436)

 

 

(15,538,957)

 

 

(37,306,838)

Segment gross profit

 

 

40,360,015

 

 

 

2,277,903

 

 

 

6,023,665

 

 

 

48,661,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

7,051,698

 

 

 

695,041

 

 

 

1,122,520

 

 

 

8,869,259

 

Salaries and wages

 

 

10,845,152

 

 

 

686,109

 

 

 

527,276

 

 

 

12,058,537

 

Professional fees

 

 

1,322,989

 

 

 

159,442

 

 

 

47,602

 

 

 

1,530,033

 

Marketing expenses

 

 

9,560,442

 

 

 

425,762

 

 

 

2,765,174

 

 

 

12,751,378

 

Rents and utilities

 

 

3,354,862

 

 

 

61,873

 

 

 

92,569

 

 

 

3,509,304

 

Bad debt expense

 

 

168,929

 

 

 

-

 

 

 

-

 

 

 

168,929

 

Segment income from operations

 

 

8,055,943

 

 

 

249,676

 

 

 

1,468,524

 

 

 

9,774,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding company expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,180,146

 

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

149,934

 

Stock-based compensation expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,456,639

 

Depreciation expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,780,271

 

Amortization expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,618,020

 

Total income (loss) from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

$(2,410,867)

Total revenues by geographic region are as follows:

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

June 30, 2025

 

 

June 30, 2024

 

UK

 

$8,376,630

 

 

 

19%

 

$9,656,962

 

 

 

25%

 

$17,227,980

 

 

 

20%

 

$9,656,962

 

 

 

15%

Europe (UK-Excl.)

 

 

24,107,757

 

 

 

56%

 

 

21,449,953

 

 

 

54%

 

 

46,981,218

 

 

 

55%

 

 

42,336,831

 

 

 

66%

Central and South America

 

 

2,235,236

 

 

 

5%

 

 

1,187,936

 

 

 

3%

 

 

4,121,450

 

 

 

5%

 

 

1,970,647

 

 

 

3%

Asia Pacific (Australia Excl.)

 

 

3,249,355

 

 

 

8%

 

 

4,224,813

 

 

 

11%

 

 

6,390,922

 

 

 

7%

 

 

4,224,813

 

 

 

7%

Australia

 

 

1,881,295

 

 

 

4%

 

 

-

 

 

 

-

 

 

 

4,334,642

 

 

 

5%

 

 

-

 

 

 

-

 

Africa

 

 

3,395,095

 

 

 

8%

 

 

2,895,578

 

 

 

7%

 

 

6,912,209

 

 

 

8%

 

 

6,076,576

 

 

 

9%

Total

 

$43,245,368

 

 

 

100%

 

$39,415,242

 

 

 

100%

 

$85,968,421

 

 

 

100%

 

$64,265,829

 

 

 

100%

 

Assets and liabilities are not separately analyzed or reported to the CODM and are not used to assist in decisions surrounding resource allocation and assessment of segment performance. As such, an analysis of segment assets and liabilities has not been included in this financial information.