Bragg Gaming CEO Yaniv Sherman is “confident” that the company’s first quarter momentum can be carried through the rest of 2023 to help create “near and long-term shareholder value”.
Reflecting on a record Q1 revenue total, the CEO noted that the opening period of the year benefitted from “growing contributions from higher margin proprietary and exclusive third-party games, and platform solutions”.
He added that the results demonstrate Bragg’s ability to deliver “strong near-term financial performance” alongside its plan of “consistent profitable revenue growth and increasing cash flow”.
Record Q1 revenue
Publishing its Q1 results, Bragg reported record total revenue for the measuring period of €22.9m, an 18.1 per cent increase year-over-year (Q1 2022: €19.4m). Wagering revenue generated by customers totalled €5.2bn, up 35.7 per cent (2022: €3.8bn).
The company’s gross profit for the quarter stood at €12.2m, a 22 per cent improvement YoY (2022: €10m) with a margin of 53.5 per cent (2022: 51.8 per cent).
Adjusted EBITDA for Q1 came in at €3.9m, a 28.1 per cent uptick YoY (2022: €3m) and a margin of 17 per cent (2022: 15.7 per cent).
Bragg noted that the increase in gross profit and adjusted EBITDA occurred due to “a change in product mix towards turn-key player account management customers, managed services and proprietary content”.
The company reported a net loss for the period of €500,000, an improvement YoY (2022: €700,000m net loss) driven by a “higher gross profit and lower corporate, professional and sales and marketing costs, partially offset by increases in total employee costs, depreciation and amortisation, and IT and hosting costs”.
Cash flow from operations stood at €6.4m by the end of Q1, a €2.5m increase YoY, cash and cash equivalents was €15.1m, while net working capital, excluding deferred consideration, was €7.7m.
Commenting on the Q1 financials, Sherman said: “We extended our momentum in the first quarter with the strong growth reflecting the continued success of our initiatives to diversify the business towards being a content-driven igaming solutions provider in a growing number of North American and European markets.”
2023 content distribution
During Q1, Bragg continued to make “consistent progress” with the distribution of its in-house and third-party content, launching with six additional operators in three North American markets and in five European markets with eight operators.
Across North America, the company rolled out content and RGS technology with DraftKings, Caesars, Resorts and Mohegan Sun in New Jersey, with Rush Street Interactive in Pennsylvania and it also entered the Mexican igaming market with Caliente Interactive.
In Europe, Bragg launched its proprietary content in the Belgium market with Napoleon Sports and Casino, went live with three new local online casino operators in Switzerland and teamed up with Microgame to enter the Italian market.
Following the strong opening quarter to the year, Bragg has reiterated its 2023 guidance, initially published in its Q4 2022 results, of revenue in the range of €93m to €97m and adjusted EBITDA between €14.5m to €16.5m.
Sherman concluded: “Our start to 2023 demonstrates our ability to successfully deliver strong near-term financial performance as we continue to successfully execute on our plan to drive consistent profitable revenue growth and increasing cash flow.
“As reflected by the midpoints of our 2023 full-year revenue and adjusted EBITDA growth targets of 12 per cent and 28 per cent, respectively, Bragg has significant underlying business momentum and we are confident that we will continue to extend this momentum and create new near- and long-term shareholder value.”