U.S. trade negotiations ‘intense,' Carney says
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Globe and Mail
12 minutes ago
- Globe and Mail
Golden Matrix (GMGI) Q2 Revenue Up 10%
Key Points Revenue (GAAP) grew 9.6% year over year to $43.2 million in the quarter but missing GAAP revenue estimates by $3.2 million. Gross margin (GAAP) improved to 56%, while Operating costs and interest expenses led to a GAAP EPS loss of $0.03. Full-year 2025 revenue guidance remains unchanged at $185–188 million, despite a swing to net loss (GAAP) in the quarter. These 10 stocks could mint the next wave of millionaires › Golden Matrix Group (NASDAQ:GMGI), a gaming technology and online wagering company, released earnings for the quarter ended June 30, 2025, on August 6, 2025, revealing mixed results. While revenue (GAAP) increased by 9.6% year-over-year in the quarter and Gross margin (GAAP) also improved by 135 basis points year-over-year to approximately 56%, both GAAP revenue and GAAP EPS fell short of analyst expectations. GMGI reported GAAP revenue of $43.2 million, almost $3.2 million below the $46.4 million GAAP estimate, and EPS (GAAP) of ($0.03) versus an anticipated ($0.003). The quarter saw a net loss as Operating and interest costs outpaced top-line gains, although management reaffirmed its full-year revenue guidance and highlighted ongoing momentum in technology, market expansion, and user engagement. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) ($0.03) ($0.00) $0.00 (100.0%) Revenue (GAAP) $43.2 million $46.4 million $39.4 million 9.6% Gross Profit $24.4 million $21.7 million N/A Adjusted EBITDA $3.4 million $5.4 million (36.4%) Gross Margin 56% 55.0% 1.0 pp Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. About Golden Matrix Group Golden Matrix Group is a developer and operator of online gambling technology platforms. The company offers a wide portfolio of sports betting, online casino, prize competitions, and eSports betting products. Its reach spans more than 8.3 million registered players as of December 31, 2024, and supports over 800 distinct games through platforms like GM-X and GM-Ag. The company's recent business strategy has focused on expanding geographically, particularly through the acquisition of Meridianbet Group, and deepening its product offering. Key success factors for GMGI are technological innovation, expansion into regulated markets, and disciplined financial management. Holding multiple gaming licenses and deploying proprietary technology allows it to target both business-to-consumer and business-to-business markets worldwide. Quarter in Detail: Financial and Operational Highlights During the quarter, GMGI saw GAAP revenue rise 9.6% in the quarter, with foreign exchange gains contributed 4.5% of this growth. Even so, GAAP revenue underperformed analyst estimates by 6.98%. The company reported a gross margin of 56%, a 1.35 percentage point improvement in gross margin compared to the same period last year. However, these positives were offset by a $3.6 million GAAP net loss, compared to near-breakeven profits a year ago, as operating and interest expenses climbed sharply. Adjusted EBITDA, a non-GAAP measure of operational earnings that excludes non-cash and one-time items, fell to $3.4 million, down from $5.4 million in Q2 2024. Management linked these costs to accelerated geographic expansion and technology upgrades, especially within its Meridianbet business and proprietary gaming platforms. The Meridianbet segment drove most of the company's operational momentum. The segment posted revenue growth of 16% year-over-year, with the online channel up 20% year-over-year. Its casino gaming products saw demand climb, with gross gaming revenue up 29% year-over-year and total casino turnover expanded 30%, reaching $434 million. Meridianbet's casino product line includes a mix of classic table games and Expanse Studios' in-house developed slot games, all distributed via online channels. GMGI's raffle ticket business (RKings) set new daily revenue records, with one instance in August 2025 exceeding the previous record by 40%. In Brazil, a new regulated license fueled a 124% jump in new player registrations and a 165% increase in first-time deposits quarter-over-quarter. Technology improvements also delivered user engagement benefits, as seen in a 50% quarter-over-quarter rise in casino turnover per player and international certifications for Expanse Studios' content in multiple countries. On the expense side, selling, general, and administrative costs (GAAP) increased to $26.7 million from $21.6 million versus Q2 2024. The company attributed the rise to geographic expansion, improved market share, and advancements in gaming technology. An interest expense of $1.5 million on debt prepayments further contributed to bottom-line pressures. Strategic actions, such as the debt conversion related to Meridianbet's acquisition, improved balance sheet flexibility. Looking Ahead: Guidance and Watch Points GMGI's management kept its full-year FY2025 revenue outlook unchanged, guiding for $185–188 million in revenue. This represents roughly 22–24% growth over FY2024. Management attributed the quarter's shortfall to temporary 'customer-friendly sports outcomes' in Europe but July revenue from the European business was up roughly 25% year-over-year in constant currency. with leadership focusing on top-line targets and market momentum as primary indicators. For upcoming quarters, investors should monitor how the company manages operating costs and integration expenses following rapid market expansion. Key focus areas include continued growth in Brazil, product innovation within online casino and social gaming, and the successful integration of acquired operations. Any updates on regulatory compliance and additional licensing—especially in large new markets—will also be significant for the company's outlook. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Globe and Mail
12 minutes ago
- Globe and Mail
Japan presses U.S. to implement auto tariff cut, seeks clarification on other levies
Japan pressed the U.S. to swiftly implement an agreed cut to auto tariffs and sought clarification on levies for other goods, as conflicting interpretations of the bilateral trade deal further put pressure on Prime Minister Shigeru Ishiba's shaky administration. In a meeting with U.S. Secretary of Commerce Howard Lutnick in Washington on Wednesday, top trade negotiator Ryosei Akazawa urged the U.S. to implement at an early date an agreed cut to U.S. tariffs on Japanese auto and auto parts, Japan's government said. Akazawa also sought confirmation and 'immediate execution' of the two countries' agreement on U.S. levies for other goods imported from Japan, the government said in a statement released on Thursday. The meeting came hours before President Donald Trump's higher tariffs on dozens of trading partners kick in on Thursday, as Japan scrambles to clarify divergences with Washington on details of their bilateral trade deal. Under the deal clinched last month, the U.S. agreed to cut tariffs on Japanese car imports to 15 per cent from levies totalling 27.5 per cent previously, but did not announce a timeframe for the change to take effect. Trump's broad tariffs go into effect as economic pain in the U.S. surfaces While the two agreed that U.S. duties on most other Japanese goods will be cut to 15 per cent from 25 per cent effective Thursday, a lack of written confirmation of the deal has led to confusion over whether the new 15-per-cent tariffs will be stacked on top of existing levies. Japan argues the two countries had agreed its goods imported to the U.S. would be exempt from such 'stacking,' where they can be affected by multiple tariffs. Speaking in parliament on Tuesday, Akazawa said Japan wants to make sure goods such as Japanese beef, which already carries tariffs above 15 per cent, will not be charged the new 15-per-cent rate as an additional tariff. But a Federal Register attached to Trump's July 31 executive order that addressed tariff rates for many trading partners showed a 'no stacking' condition applies to the European Union, but no such clarification was issued for Japan. Japan's Asahi newspaper reported on Thursday, citing an unnamed White House official, that the U.S. will stack the tariffs, adding 15 per cent on all Japanese imports without applying exceptions for items that already have tariff rates above 15 per cent. In a regular news conference held after the Asahi report, Chief Cabinet Secretary Yoshimasa Hayashi said the U.S. was unlikely to stack 15-per-cent tariffs on existing levies. He said Akazawa confirmed the point with the U.S. side during his visit to Washington on Wednesday. Trump strikes tariff deal with Japan, auto stocks surge Given such discrepancies, Ishiba has been under attack in parliament and domestic media for not crafting a written joint statement stipulating details of the trade deal with the U.S. Ishiba defended the decision, telling parliament on Monday that Japan decided to forgo a written statement for fear that doing so could delay U.S. tariff reductions. Some lawmakers have warned a lack of written confirmation could backfire given Trump's unpredictable decision-making style. The confusion adds to trouble for Japan's shaky government led by Ishiba, who is facing calls to step down after the ruling coalition's huge loss in last month's upper house election. 'In negotiating with the U.S., Minister Akazawa at least ought to have nailed down exactly when U.S. automobile tariffs would be lowered to 15%,' ruling party heavyweight and former trade minister Ken Saito told Reuters on Tuesday. Yuichiro Tamaki, leader of opposition Democratic Party for the People, urged Akazawa to press Trump's administration harder to adhere to the bilateral agreement. 'After all, I do feel that a document on the agreement was necessary,' Tamaki wrote in an X post on Thursday.
Globe and Mail
12 minutes ago
- Globe and Mail
Trump's broad tariffs go into effect as economic pain in the U.S. surfaces
U.S. President Donald Trump was set to officially begin levying higher import taxes on dozens of countries Thursday, just as the economic fallout of his monthslong tariff threats has begun to create visible damage for the U.S. economy. The White House said that starting just after midnight that goods from more than 60 countries and the European Union would face tariff rates of 10 per cent or higher. Products from the European Union, Japan and South Korea will be taxed at 15 per cent, while imports from Taiwan, Vietnam and Bangladesh will be taxed at 20 per cent. For places such as the EU, Japan and South Korea, Trump also expects them to invest hundreds of billions of dollars in the U.S. 'I think the growth is going to be unprecedented,' Trump said Wednesday afternoon. He added that the U.S. was 'taking in hundreds of billions of dollars in tariffs,' but he couldn't provide a specific figure for revenues because 'we don't even know what the final number is' regarding tariff rates. Explainer: Here are the trade deals the U.S. has announced so far Despite the uncertainty, the Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world's largest economy. Now that companies understand the direction the U.S. is headed, the administration believes they can ramp up new investments and jump-start hiring in ways that can rebalance the U.S. economy as a manufacturing power. But so far, there are signs of self-inflicted wounds to America as companies and consumers alike brace for the impact of new taxes. What the data has shown is a U.S. economy that changed in April with Trump's initial rollout of tariffs, an event that led to market drama, a negotiating period and Trump's ultimate decision to start his universal tariffs on Thursday. After April, economic reports show that hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline, said John Silvia, CEO of Dynamic Economic Strategy. 'A less productive economy requires fewer workers,' Silvia said in an analysis note. 'But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.' Even then, the ultimate transformations of the tariffs are unknown and could play out over months, if not years. Many economists say the risk is that the American economy is steadily eroded rather than collapsing instantly. 'We all want it to be made for television where it's this explosion – it's not like that,' said Brad Jensen, a professor at Georgetown University. 'It's going to be fine sand in the gears and slow things down.' Trump has promoted the tariffs as a way to reduce the persistent trade deficit. But importers sought to avoid the taxes by importing more goods before the taxes went into effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. Total construction spending has dropped 2.9% over the past year, and the factory jobs promised by Trump have so far resulted in job losses. The lead-up to Thursday fit the slapdash nature of Trump's tariffs, which have been variously rolled out, walked back, delayed, increased, imposed by letter and frantically renegotiated. Tony Keller: What does Donald Trump want from Canada? We are about to find out The process has been so muddled that officials for key trade partners were unclear at the start of the week whether the tariffs would begin Thursday or Friday. The language of the July 31 order to delay the start of tariffs from Aug. 1 said the higher tax rates would start in seven days. On Wednesday morning, Kevin Hassett, director of the White House National Economic Council, was asked if the new tariffs began at midnight Thursday, and he said reporters should check with the U.S. Trade Representative's Office. Trump on Wednesday announced additional 25-per-cent tariffs to be imposed on India for its buying of Russian oil, bringing their total import taxes to 50 per cent. He has said that import taxes are still coming on pharmaceutical drugs and announced 100-per-cent tariffs on computer chips, meaning the U.S. economy could remain in a place of suspended animation as it awaits the impact. The President's use of a 1977 law to declare an economic emergency to impose the tariffs is also under challenge. The impending ruling from last week's hearing before a U.S. appeals court could cause Trump to find other legal justifications if judges say he exceeded his authority. Even people who worked with Trump during his first term are skeptical that things will go smoothly for the economy, such as Paul Ryan, the former Republican House speaker, who has emerged as a Trump critic. 'There's no sort of rationale for this other than the President wanting to raise tariffs based upon his whims, his opinions,' Ryan told CNBC on Wednesday. 'I think choppy waters are ahead because I think they're going to have some legal challenges.' Still, the stock market has been solid during the recent tariff drama, with the S&P 500 index climbing more than 25 per cent from its April low. The market's rebound and the income tax cuts in Trump's tax and spending measures signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. As of now, Trump still foresees an economic boom while the rest of the world and American voters wait nervously. 'There's one person who can afford to be cavalier about the uncertainty that he's creating, and that's Donald Trump,' said Rachel West, a senior fellow at The Century Foundation who worked in the Biden White House on labour policy. 'The rest of Americans are already paying the price for that uncertainty.'
