Bragg Gaming Releases Strong 2023 Results, Updates Guidance

Bragg Gaming Group, a global provider of iGaming tech, has published its Q4 and FY 2023 results, reporting very favorable figures. The company subsequently updated its growth targets for 2024.

In Q4 2023, revenue decreased by 1.4% to $25.2 million, reflecting the revised commercial terms with a key strategic partner. Betting handle, on the other hand, reached a whopping $6.6 billion, marking a significant increase.

Quarterly adjusted EBITDA declined by 23.7% to $3 million. In the meantime, adjusted EBITDA margins decreased by 350bps to 11.9%, a change attributed to a decline in the gross profit offset by an improvement in cost optimization.

Gross profit decreased by 7.3% to $12.9 million, while operational loss decreased from $0.6 million in Q4 2022 to $0.4 million in Q4 2023.

As for Bragg’s full-year results, the company reported revenue of $100.5 million, representing an increase of 10.4% year-on-year. Betting handle stood at $24.1 billion. The group also reported a gross profit increase of 10.8% to $53.7 million, representing a gross profit margin of 53.4%.

Adjusted EBITDA, on the other hand, stood at EUR 15.2 million for FY 2023, marking an increase of 26.3% year-on-year. This translated into an adjusted EBITDA margin of 16.3%. Cash flow from operations reached $12.6 million.

The company ended 2023 with $9.5 million in cash and cash equivalents and $5.5 million of net working capital, excluding deferred consideration and convertible debt.

Bragg added that it expects FY 2024 revenue in the range of $109.7-117.2 million and adjusted EBITDA range between $16.3 million and 19.9 million.

The Company Will Explore Strategic Alternatives

In 2023, Bragg Gaming Group signed several Tier-1 content distribution deals with companies such as Betsson, 888 and PokerStars. In addition, it launched content in new regulated markets, such as Belgium, Italy and Caliente.

The company rolled out new games and continues to supply operators in international markets with proprietary and exclusive content.

In the meantime, Bragg’s board formed an ad hoc special committee, chaired by independent board member Don Robertson, to undertake a review of the company’s strategic alternatives. Such alternatives include a potential sale, merger, financing, acquisitions or other moves.

Matevž Mazij, Bragg’s chief executive officer, released a statement on the results, saying that his team will continue its efforts to establish the business as a premier content-focused iGaming B2B provider.

He praised the expansion of Bragg’s global distribution, saying that his team anticipates a further surge in the global adoption of his company’s games in 2024. Mazij added that his company is in a good spot for long-term growth in top-line revenue, gross profit and adjusted EBITDA, along with improved operating margins.

With confidence, we affirm our readiness with the appropriate strategies, financial strength, and infrastructure to maintain our business momentum while executing initiatives that foster cash flow growth and generate added value for our shareholders.

Matevž Mazij, CEO, Bragg Gaming Group

In other news, Bragg recently agreed to provide Golden Nugget Michigan with content.