Bragg Gaming eyes ‘consistent progress’ after ‘significant’ Q2 growth

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Bragg Gaming has raised its full-year expectations thanks to “significant” year-on-year growth, with sequential improvements tracked across an array of reporting metrics.

With operating momentum said to represent the group’s “continued success,” the B2B gaming tech and content provider is also eyeing a further enhancement of its global capabilities following June’s completed purchase of Spin Games.

This, said Bragg, means that the group possesses the development capabilities, expertise, and licensed footprint to drive “further and consistent progress on our content and market expansion growth initiatives” across Europe and North America.

The comments come as the group reports a 34.2 per cent year-on-year revenue increase to €20.8m ($21.3m) from the €15.5m ($15.9m) recorded through 2021.

Wagering revenue rose 10.2 per cent to €4.2bn (2021: €3.8bn) which Bragg noted reflects a change in product mix towards PAM, managed services and proprietary content.

A continued shift towards a higher proportion of revenues from igaming and turnkey services was cited in gross profit surging 65.5 per cent YoY to €11.6m (2021: €7m), with net income closing at €100,000 compared to a loss of €2.3m one year earlier.

This latter point was attributed to higher gross profit and lower professional fees and transactional costs, which was partially offset by an incremental increase in employee costs, sales and marketing expense, and higher depreciation and amortisation.

“Our operating momentum highlights our continued success”

Adjusted EBITDA closed the period at €3.1m, up 62.9 per cent from €1.9m, and was aligned to increased scale and an improvement in the product mix of igaming and turnkey services. 

“Our operating momentum highlights our continued success in serving a growing base of customers in an expanding number of regulated global igaming markets, with turnkey igaming solutions that power their businesses, including proprietary and exclusive third-party content,” stated Yaniv Sherman, Chief Executive Officer for Bragg Gaming Group.  

“We expect to release approximately 22 proprietary games this year representing a 120 per cent increase from 2021, with our game development roadmap poised to accelerate our new game releases next year and beyond. 

“In addition, we will supplement our internal game development efforts with agreements for Bragg to exclusively distribute games from established popular third-party studios. 

“We expect our execution against our content development and distribution strategy will result in a higher level of desirable ‘real estate’ allocation on leading igaming operators’ sites, leading to higher player engagement that drives further top-line growth and margin improvement.”

In reflection of a strong performance through the year thus far, the company has also raised its financial outlook for the full-year.

This sees revenue anticipated to reach €76m-80m from the previously expressed €68m-€72m, with AEBITDA up from €9.5m-€10.5m to €10m-€11m. The midpoints of these 2022 ranges would represent growth of 34 per cent and 46 per cent YoY, respectively.

Sherman ended: “As demonstrated by our operating results to-date in 2022, our success with these efforts is driving strong top-line growth and margin improvement, highlighting our ability to deliver near- and long-term shareholder value.”