• Wed. Sep 27th, 2023
Bragg Gaming Posts An 18.9% Increase in Profits During 2Q23


Recently, Bragg Group, a B2B provider of content-based technology based in Toronto, Canada, revealed its financial for 2Q23, which officially ended on June 30 of this fiscal year, where it showed that its income grew by 18.9% to an incredible €24.7 million. However, it also adjusted its and Adjusted EBITDA growth targets for the entire fiscal year 2023.

Additionally, on August 10, the provider held a conference call where the main topic was earnings from the second quarter of the specified year and a replay of the said call will be accessible till August 17.

Outline of 2023 operational and financial peaks

As Bragg reports its earnings in EUR, the table below shows that gross revenue rose 18.9% to €13.8 million, which is roughly USD $15.2 million, compared to €11.6 million during 2022, which further represents a gross income margin of 55.9%. The Adjusted EBITDA then increased by 51.3% to €4.7 million compared to €3.1 million during the second quarter of 2022, showing an Adjusted EBITDA margin of 19.2% compared to 15.1% during the same quarter in 2022.

Furthermore, betting income collected from games and additional content provided by the firm grew by 31.2% to €5.5 billion in to €4.2 billion generated in 2022, the net profit for the 2Q23 was €0.4 million which is an compared to €0.1million in 2Q22.

In terms of operations, total revenue was €5.2 million, cash and cash equivalents as at June 30, 2023, were €10.7 million and net working capital, excluding deferred payments, was €8.3 million.

Euros (millions) (1) 2Q23 2Q22 Change
Revenue €24.7 €20.8 18.9%
Gross Profit €13.8 €11.6 18.9%
Gross Profit Margin 55.9% 55.9% 0 bps
Adjusted EBITDA(2) €4.7 €3.1 51.3%
Adjusted EBITDA margin 19.2% 15.1% 410 bps
Wagering Revenue €5.5 B €4.2 B 31.2%

(1) Bragg's reporting currency is the Euro, as mentioned above. The quoted exchange rate is EUR €1.00 = USD $1.10. Due to fluctuating currency exchange rates, this reference rate is provided for convenience only;
(2) Adjusted EBITDA is the Company's non-IFRS measure.

Commenting on the increase in profits during the said quarter, Yaniv Sherman, CEO of Bragg, said: “Bragg's initiatives to focus the business to be a leading content-driven iGaming B2B provider combined with disciplined expense management, resulted in record second quarter operating results. Second quarter revenue and gross profit both rose nearly 19% year over year to €24.7 million (USD $27.2 million) and €13.8 million (USD $15.2 million), respectively, while Adjusted EBITDA increased more than 50% to €4.7 million (USD $5.2 million). These results reflect, in part, our continued shift towards a revenue mix of higher-margin products including in-house created proprietary and exclusive third-party content, turn-key Player Account Management (“PAM”) and managed services partnerships. The mix shift helped drive a 410-basis point improvement in our Adjusted EBITDA margin to 19.2%, an all-time quarterly record.

“During the second quarter we further advanced our efforts to scale the global distribution of our proprietary and exclusive third-party content. We continue to grow our distribution in North America as in the first six months of this year we launched our proprietary and exclusive third-party content across seven operators in three North American markets. We are similarly focused on expanding our presence in Europe as we launched with ten operators in five European markets in the same time frame, including now being live with nearly all of the operators in Switzerland and having the leading PAM in the Netherlands. With our successes on this front, we continue to accelerate our new game launches, with 30 new proprietary or third-party exclusive games introduced globally in the first half of the year, and up to 40 additional new games expected to be introduced by year end. The growing distribution of our new games to new partners demonstrates the significant value and engagement of our content as well as our progress in transforming Bragg into a must-have content supplier for leading global iGaming operators.

With significant and ongoing progress on our key strategic initiatives Bragg is positioned to deliver further year over revenue and cash flow growth in the second half of 2023 and beyond. Our balance sheet and strong cash flow has us well capitalized to execute on our growth initiatives. We are confident we have the right strategies and infrastructure in place to continue fortifying our position as a leading B2B iGaming content provider and that our business momentum will create new value for our shareholders.”

What's more, in addition to sustaining business momentum during the first half of 2023 and ongoing talks regarding the long-term optimization of crucial customer alliances, Bragg also updated its 2023 year revenue guidance range to €95-97 million and its full year Adjusted EBITDA to €15.5-16.5 million.”

Crucial business events during the second quarter

Throughout the aforementioned second quarter of 2023, Bragg may boast of having achieved many important goals, such as:

  • New content and RGS technology went live with Rush Street Interactive in Pennsylvania, with in Michigan and Connecticut, and with WynnBet in New Jersey;
  • Entered into new global distribution agreements with Tier 1 operators 888 Holdings and PokerStars (Flutter):
  • These agreements will the reach of Bragg's content in leading European markets such as the UK, Italy, Portugal, Spain, Denmark, Sweden and in the U.S. in New Jersey, Michigan and Pennsylvania;
  • Launched for the first time in the Eurasian territory of Georgia with Adjarabet;
  • Expanded Switzerland and Spain reach with six new customers;
  • Since April 1, 2023, the Company has made four monthly cash payments to Lind Global Fund II LP (Lind”) in the aggregate amount of USD $2.0 million, in lieu of conversion into common shares, avoiding further dilution. The total balance of the convertible security as of August 10, 2023, is USD $6.0 million;
  • Bragg expects to utilize cash flow from operations to make similar monthly cash payments to further reduce the Lind convertible security.”

Source: “Bragg Gaming Group Second Quarter Revenue Rises 18.9% to Record €24.7 Million”. Bragg Gaming Group Official. August 10, 2023.

#Bragg #Gaming #Posts #Increase #Profits #2Q23

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