Bragg Gaming The CEO Yaniv S. Sherman “confident” the momentum of the first quarter can continue through 2023 and help to create “near- and long-term value for shareholders”.
The CEO, reflecting on the record revenue for Q1, noted that “the opening period of the new year was boosted by the growing contributions from proprietary and exclusive games from third parties, as well as platform solutions”.
He said that Bragg was able to achieve “strong financial performance in the near term” along with its plan for “consistently profitable revenue growth and increased cash flow”.
Record Q1 revenue
Bragg, in its first quarter results, reported a record revenue of EUR22.9m (Q1 2022: EUR19.4m), an increase of 18.1% year-over-year. The wagering revenue generated by the customers reached EUR5.2bn (up 35.7% from 2022: EUR3.8bn).
The company’s gross profits for the third quarter were EUR12.2m. This represents a 22 percent improvement over last year (2022: EUR10m). It also represents a margin 53.5 percent (2022: 51.8%).
The adjusted EBITDA for the first quarter was EUR3.9m. This represents a 28.1% increase YoY (2022 EUR3m), and a margin 17 percent (2022 15.7%).
Bragg stated that the increased gross profit and adjusted EBITDA was due to a “change in product mix” towards managed services, turn-key players and proprietary content.
The company reported that it had a net loss of EUR500,000 for the period, a significant improvement over last year’s loss of EUR700,000,000m (2022). This was due to “a higher gross profit, lower corporate, professional, sales and marketing, offset in part by an increase in total employee costs and depreciation, amortisation and IT and Hosting costs”.
Cash flow from operations was EUR6.4m at the end of Q1, an increase of EUR2.5m YoY. Cash and cash equivalents were EUR15.1m while net working capital (excluding deferred compensation) was EUR7.7m.
Sherman commented on the Q1 results: “We continued our momentum in the quarter, with the strong growth reflecting our initiatives to grow the business into a provider of content-driven igaming in an increasing number of North American markets and European ones.”
2023 content distribution
Bragg made “consistent progresses” in Q1 with its distribution of in-house content and that from third parties. It launched with six new operators in three North American market and eight additional operators in five European markets.
The company has rolled out RGS and content technology across North America with DraftKings, Caesars, Resorts, and Mohegan Sun, in New Jersey, Rush Street Interactive, in Pennsylvania, and Caliente Interactive, in Mexico.
Bragg has launched its own content on the Belgian market using Napoleon Sports and Casino. It also went live in Switzerland with three local online casinos and teamed with microgame to enterthe Italian Market.
Bragg, following a strong start to the year has reiterated the 2023 guidance it originally published in its Q4 results of 2022, which was revenue between EUR93m and EUR97m, with adjusted EBITDA ranging from EUR14.5m – EUR16.5m.
Sherman concluded: “Our strong start to 2023 shows our ability to deliver strong financial performance in the near term as we continue successfully executing on our plan to drive consistently profitable revenue growth and increase cash flow.
As reflected in the midpoints for our revenue growth target of 2023, and our adjusted EBITDA targets of 28 percent and 12 percent, respectively, Bragg is a company with significant business momentum. We are confident that this momentum will continue and create new long-term and near-term shareholder values.”