Bragg Gaming has highlighted a strong end to 2022 in its fourth quarter and full-year financial results where it saw growth across both segments, with new records in revenue and adjusted EBITDA.
CEO Yaniv Sherman noted that the movements the igaming technology provider has made over the past year have helped to lay “the foundation to scale as a global business”.
Bragg Gaming Q4 and 2022 results
Publishing its results, Bragg declared a record revenue in Q4 of €23.7m, growing by 50.3 per cent year-over-year (Q4 2021: €15.8m). For the full year, revenue rose by 45.3 per cent to €84.7m (2021: €58.3m).
In Q4, wagering revenue generated by customers came in at €5.1bn (2021: €3.1bn), while the figure was €17.7bn for the full year (2021: €14.3bn)
The provider’s gross profit in Q4 came in at €13m, a 61.6 per cent increase YoY (2021: €8m) following a “change in product mix towards turn-key player account management (PAM) customers, managed services and proprietary content”.
For the full year, gross profit was €45.1m, up 59.2 per cent (2021: €28.3m).
Net loss improved YoY in the quarter to €900,000 (2021: €2m) and the full year to €3.5m (2021: €7.5m) due to “higher gross profit partially offset by an increase in selling, general and administrative expenses and a gain on the remeasurement of deferred consideration”.
Bragg reported an operating income of €162,000 for the quarter (2021: €1.8m loss), but a loss of €828,000 for the full year. However, this was an improvement from the previous year (2021: €6.6m).
Bragg’s adjusted EBITDA for the quarter ended at €3.6m, a 128.3 per cent uptick YoY (2021: €1.6m). For the full year, adjusted EBITDA finished at €12.1m, a 64 per cent improvement (2021: €7.4m).
Sherman commented: “Bragg concluded a transformational 2022 with another quarter of record results, as fourth quarter revenue, gross profit and Adjusted EBITDA grew significantly compared to the fourth quarter of 2021 and exceeded our prior expectations.”
Foundation to scale
Sherman noted that the record results highlight the provider’s “ongoing substantial momentum” as it diversifies its operations into global igaming markets, with extensive North American and European distribution.
He also highlighted the impact of Bragg’s movements when it comes to expanding its content offerings, alongside launching across three US jurisdictions and multiple global markets.
“With the full integration of our Wild Streak Gaming and Spin Games acquisitions and our four game development studios hitting their stride and consistently growing their game development output, Bragg has the foundation to scale as a global business,” the CEO added.
Bragg released 43 distinct titles during 2022, with 20 from Bragg Studios brands. Two new Bragg Studios brands – Atomic Slot Lab and Indigo Magic – were also rolled out during the year.
Sherman continued: “Our ability to generate consistent revenue and margin growth reflects our approach to differentiate our igaming content by internally developing a steady stream of player-popular games (20 games across the globe in 2022) complemented by exclusive third-party games from leading development studios (23 games in 2022).
“This approach provides our operating partners with content that engages their players at higher levels, as the peak revenue generation of our newest premium proprietary and third-party games has been excellent and the performance tail for these games is significantly longer than similar games.
“We are confident that the acceleration of our development of proprietary games and third-party exclusive games will help us gain further market share in our existing markets as well as in new markets, particularly in North America.”
Looking ahead, Bragg has issued its guidance for 2023, with revenue expected to grow by 10 per cent to 15 per cent to a range of €93m to €97m and adjusted EBITDA expected to improve by 20 per cent to 36 per cent to a range of €14.5m to €16.5m. This guidance is an increase from the initial expectations provided in Q3 2022 due to a strong Q4.
Established in The Netherlands and Switzerland, Bragg is looking to expand its operations in the UK, Portugal, Spain and Belgium, as well as in the US states of New Jersey, Pennsylvania, Michigan and Connecticut, and the Canadian province of Ontario.
The provider is also looking to new horizons in Italy, Germany, the Czech Republic, Denmark, Sweden, Greece, Georgia, Mexico, Colombia, Brazil and the Canadian province of British Columbia.
Sherman added that Bragg expects to accelerate its development and introduction of proprietary games in North America and Europe in the second half of the year, further benefiting margins and driving operating momentum.
“We are excited about the opportunities 2023 presents as we continue to execute on our strategic priorities to create long-term shareholder value,” the CEO concluded.