27.03.2024

by Adam Dworak

Last update: 27.03.2024 11:10

Bragg Gaming Group Announces Record 2023 Results and Strategic Growth Outlook for 2024

Bragg Gaming Group, a frontrunner in the global B2B iGaming technology sphere, recently disclosed its financial achievements for the fourth quarter and the entirety of 2023, setting new records.

The announcement also encompassed an overview of the company’s strategic growth endeavors and revised targets for revenue and Adjusted EBITDA for 2024, signaling an optimistic trajectory for the upcoming year.

Chief Executive Officer Commentary

Matevž Mazij, the CEO of Bragg Gaming Group, shared his insights into the company’s performance and strategic direction. “Through Bragg’s strategic efforts to establish the business as a premier content-focused iGaming B2B provider and our meticulous control over expenses, we achieved growth in revenue, gross profit, and Adjusted EBITDA in 2023, along with a 210bps improvement in Adjusted EBITDA margin to 16.3%. 2023 revenue rose 10.4% to EUR 93.5 million (USD 100.5 million), gross profit increased by 10.8% to EUR 49.9 million (USD 53.7 million), and adjusted EBITDA increased by more than 26% to EUR 15.2 million (USD 16.3 million). These achievements are attributed, in part, to a reconfiguration of our revenue mix, favoring higher-margin products like internally developed proprietary content, and our comprehensive Player Account Management (‘PAM’) platform, all while maintaining stringent cost control measures.”

Mazij further elaborated on Bragg’s strategic initiatives, including its dominance in the Netherlands as a leading PAM provider and its expansion efforts in the Czech market and other international jurisdictions. Despite facing regulatory challenges and competitive pressures, particularly in the Dutch market, Bragg remains committed to diversifying its business and enhancing its profitability.

Full Year and Fourth Quarter 2023 Business Highlights

Bragg Gaming Group’s year was marked by significant strategic partnerships and content launches in new markets. The company secured Tier 1 content distribution agreements with notable names like Betsson, 888/William Hill, and PokerStars, and expanded its presence in Belgium, Italy, and Mexico. The fourth quarter saw the launch of proprietary content and player engagement solutions in Brazil and New Jersey, among other achievements.

Financial Performance and Strategic Outlook

The fourth quarter of 2023 saw a slight dip in revenue and gross profit, primarily due to revised terms with a key strategic partner. Nonetheless, the full-year results were robust, with a 10.4% increase in revenue and significant improvements in gross profit and Adjusted EBITDA. Looking ahead to 2024, Bragg anticipates revenue growth between 9.1% to 16.6% and an up to 21.7% increase in Adjusted EBITDA, reflecting the company’s positive outlook and strategic initiatives.

Review of Strategic Alternatives

In a move to explore potential growth avenues, Bragg’s Board of Directors has initiated a strategic review process, led by an independent committee. This process might encompass a range of strategic alternatives, including mergers, acquisitions, or other significant business transformations, though no definitive timeline or decisions have been announced yet.

Our Comment on the Article

Bragg Gaming Group’s performance in 2023 exemplifies a strategic blend of product innovation, market expansion, and operational efficiency. The company’s focus on high-margin offerings and strategic partnerships has paved the way for its record-breaking results and optimistic outlook for 2024.

As Bragg navigates the dynamic iGaming landscape, its commitment to growth and value creation holds promising prospects for stakeholders and the broader industry.

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