Bragg looking to maintain momentum following ‘steady progress’ in Q3

Bragg Gaming Group is looking to maintain operating momentum into the remainder of the year and beyond after reflecting on the “steady progress” continuing to be made due to a number of “strategic initiatives”.

This, said CEO Yaniv Sherman, includes the development of fresh proprietary content and an array of exclusive distribution agreements as the group looks to further enhance its customer base and number of markets served.

This latter point comprised the Dutch market, where Sherman noted “we have established a leading position following our launch with multiple operators since the market opened.”

The comments come as the group reports a 62.3 per cent year-on-year revenue increase to $20.9m from the $12.9m recorded through 2021.

Wagering revenue rose 43.75 per cent to $4.6bn (2021: $3.2bn) which Bragg noted reflects a change in product mix towards PAM, managed services and proprietary content.

Gross profit through the quarter rose 58 per cent to $10.4m (2021: $6.6m), with net loss improving from $2.5m one year ago to $2m due to higher a profit that was offset by an increase in IT and hosting costs, professional fees, transnational and exceptional costs, sales and marketing expense and higher depreciation and amortisation. AEBITDA increased 51.6 per cent to $2.2m (2021: $1.5m).

“Our record third quarter results reflect significant year-over-year revenue, gross profit and Adjusted EBITDA growth highlighting our progress in providing value-added content and services to a growing global base of customers across regulated igaming markets, including in North America,” noted Sherman, 

Adding: “Our operating momentum has been consistent throughout the year as for the first nine months of 2022 revenue, gross profit and adjusted EBITDA have improved significantly, compared to the same period in 2021.”

“…we expect our consistent execution against our strategy and growth initiatives will drive further revenue and adjusted EBITDA growth”

Furthermore, the company has also reiterated full-year expectations that sees revenue anticipated to reach €76m-80m, with AEBITDA expected to fall in the €10m-€11m boundary. The midpoints of these ranges would represent growth of 34 per cent and 46 per cent YoY, respectively.

Bragg also provided an initial expectation for 2023 full year revenue growth of low double-digit percentage, with an AEBITDA increase of at least 20 per cent also anticipated.

“Our positive adjusted EBITDA, combined with capital we raised in the third quarter positions us to continue to invest to drive further growth,” Sherman concluded.

“Reflecting our strong performance through the first nine months of the year and our expectations for consistent operating execution in the fourth quarter, we are reiterating our guidance for 2022 full year revenue and adjusted EBITDA. 

“Looking ahead, we expect our consistent execution against our strategy and growth initiatives will drive further revenue and adjusted EBITDA growth in 2023. 

“Our expectation that we will continue to deliver top-line and adjusted EBITDA growth in what is currently a highly dynamic and volatile environment is a testament to our team members ability to execute on our focused strategies, which positions us well to deliver near and long-term shareholder value.”