v3.25.3
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 9 Months Ended
Sep. 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 nine months ended

 

 

 

September 30, 2025

 

 

 

MeridianBet Group

 

 

GMAG

 

 

RKings & CFAC

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$89,392,980

 

 

$11,007,085

 

 

$32,884,664

 

 

$133,284,729

 

Cost of revenue

 

 

(26,755,333)

 

 

(7,557,329)

 

 

(23,924,061)

 

 

(58,236,723)

Segment gross profit

 

 

62,637,647

 

 

 

3,449,756

 

 

 

8,960,603

 

 

 

75,048,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

11,342,321

 

 

 

1,252,431

 

 

 

1,705,588

 

 

 

14,300,340

 

Salaries and wages

 

 

16,366,968

 

 

 

1,121,982

 

 

 

874,398

 

 

 

18,363,348

 

Professional fees

 

 

1,745,728

 

 

 

245,212

 

 

 

57,140

 

 

 

2,048,080

 

Marketing expenses

 

 

14,864,692

 

 

 

648,084

 

 

 

4,126,722

 

 

 

19,639,498

 

Rents and utilities

 

 

5,474,898

 

 

 

102,085

 

 

 

141,624

 

 

 

5,718,607

 

Bad debt expense

 

 

229,239

 

 

 

 

 

 

 

 

 

 

 

229,239

 

Segment income from operations

 

 

12,613,801

 

 

 

79,962

 

 

 

2,055,131

 

 

 

14,748,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding company expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,878,950

 

Restructuring costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

278,090

 

Stock-based compensation expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,003,054

 

Depreciation expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,193,434

 

Amortization expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,193,854

 

Total income (loss) from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

$(2,798,488)

 

Total revenues by geographic region are as follows:

 

 

 

For the three months ended

 

 

For the nine months ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

 

September 30, 2025

 

 

September 30, 2024

 

UK

 

$9,029,513

 

 

 

19%

 

$8,879,408

 

 

 

22%

 

$26,257,493

 

 

 

20%

 

$18,536,370

 

 

 

18%

Europe (UK-Excl.)

 

 

26,672,175

 

 

 

56%

 

 

21,896,664

 

 

 

53%

 

 

73,653,393

 

 

 

55%

 

 

64,233,494

 

 

 

61%

Central and South America

 

 

2,231,805

 

 

 

5%

 

 

1,484,262

 

 

 

4%

 

 

6,353,255

 

 

 

5%

 

 

3,454,909

 

 

 

3%

Asia Pacific (Australia Excl.)

 

 

2,939,491

 

 

 

6%

 

 

3,746,094

 

 

 

9%

 

 

9,330,413

 

 

 

7%

 

 

7,752,215

 

 

 

8%

Australia

 

 

2,292,529

 

 

 

5%

 

 

2,181,998

 

 

 

5%

 

 

6,627,171

 

 

 

5%

 

 

2,400,690

 

 

 

2%

Africa

 

 

4,150,795

 

 

 

9%

 

 

2,803,903

 

 

 

7%

 

 

11,063,004

 

 

 

8%

 

 

8,880,480

 

 

 

8%

Total

 

$47,316,308

 

 

 

100%

 

$40,992,329

 

 

 

100%

 

$133,284,729

 

 

 

100%

 

$105,258,158

 

 

 

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.