v3.26.1
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
 3 Months Ended
Mar. 31, 2026
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 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 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 three months ended

 

 

 

March 31, 2026

 

 

 

MeridianBet Group

 

 

GMAG

 

 

RKings & CFAC

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

34,863,031

 

 

 

3,133,292

 

 

 

12,107,547

 

 

 

50,103,870

 

Cost of revenue

 

 

(10,716,303)

 

 

(2,070,924)

 

 

(9,172,403)

 

 

(21,959,630)

Segment gross profit

 

 

24,146,728

 

 

 

1,062,368

 

 

 

2,935,144

 

 

 

28,144,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

4,295,523

 

 

 

562,333

 

 

 

545,729

 

 

 

5,403,585

 

Salaries and wages

 

 

5,945,922

 

 

 

425,406

 

 

 

336,335

 

 

 

6,707,663

 

Professional fees

 

 

593,879

 

 

 

37,311

 

 

 

25,900

 

 

 

657,090

 

Marketing expenses

 

 

4,504,926

 

 

 

258,954

 

 

 

1,628,573

 

 

 

6,392,453

 

Rents and utilities

 

 

2,156,687

 

 

 

42,648

 

 

 

42,921

 

 

 

2,242,256

 

Bad debt expense

 

 

15,763

 

 

 

86,413

 

 

 

-

 

 

 

102,176

 

Segment income/(loss) from operations

 

 

6,634,028

 

 

 

(350,697)

 

 

355,686

 

 

 

6,639,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding company expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

772,706

 

Stock-based compensation expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

248,057

 

Depreciation expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,435,955

 

Amortization expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,025,175

 

Total income (loss) from operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,157,124

 

 

Total revenues by geographic region are as follows:

 

 

 

For the three months ended

 

 

 

March 31,

2026

 

 

March 31,

2025

 

UK

 

$9,948,603

 

 

$8,851,350

 

Europe (UK-Excl.)

 

 

27,677,492

 

 

 

22,873,461

 

Central and South America

 

 

2,797,565

 

 

 

1,886,214

 

Asia Pacific (Australia Excl.)

 

 

2,440,899

 

 

 

3,141,567

 

Australia

 

 

2,158,944

 

 

 

2,453,347

 

Africa

 

 

5,080,367

 

 

 

3,517,114

 

Total

 

$50,103,870

 

 

$42,723,053

 

 

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.