Bragg Gaming Group Reports Impressive Q3 2023 Results
Bragg Gaming Group, a global B2B iGaming technology provider, has announced its financial results for the third quarter of 2023, ending September 30.
The company also reaffirmed its revenue and Adjusted EBITDA growth targets for the full year of 2023, showcasing strong business momentum and strategic planning.
Key Financial Highlights of Q3 2023
Bragg Gaming Group reported an 8.0% increase in revenue, reaching €22.6 million, compared to €20.9 million in the same period last year. The gross profit saw a 13.5% rise to €11.9 million, improving the gross profit margin to 52.5%.
A significant boost in Adjusted EBITDA was observed, escalating by 70.5% to €3.8 million, with the margin reaching 16.9%. The wagering revenue generated by customers surged by 24.6%, amounting to €5.7 billion.
CEO’s Commentary and Strategic Initiatives
Matevž Mazij, CEO of Bragg, attributed the company’s robust performance to its strategic positioning as a leading content-driven iGaming B2B provider and disciplined expense management. He stated “Bragg’s initiatives to position the business as a leading content-driven iGaming B2B provider as well as our disciplined expense management combined to drive growth in third quarter revenue, gross profit and Adjusted EBITDA, as well as a quarterly Adjusted EBITDA margin of 16.9%.
“Third quarter year over year revenue rose 8% to €22.6 million (USD $24.0 million), gross profit increased 13.5% to €11.9 million (USD $12.6 million) and Adjusted EBITDA increased more than 70% to €3.8 million (USD $4.0 million). These results reflect, in part, a revenue mix shift to higher-margin products including in-house created proprietary content, exclusive third-party content, and turn-key Player Account Management (“PAM”) and managed services partnerships, alongside our ongoing cost control actions.”
Business Expansions and Partnerships
Bragg launched new proprietary and third-party games in key U.S. and European markets. The company secured significant distribution agreements with major operators like 888 Holdings, PokerStars, and bet365, enhancing its global presence.
Expansion of content distribution in Italy and an extended agreement with Entain Plc for the Dutch market were key strategic moves.
Debt Management and Cash Flow
Bragg has been proactive in managing its debt, making monthly cash payments to Lind Global Fund II LLP, thus reducing the potential dilution of common shares. The company expects to continue using its operational cash flow for further debt reduction.
Reflecting on its strong performance over the first nine months, Bragg Gaming Group remains confident in achieving its 2023 full-year revenue guidance of €95-97 million and an Adjusted EBITDA range of €15.5-16.5 million.
Our Comment on the Article
Bragg Gaming Group’s impressive Q3 2023 results reflect the company’s successful strategy and execution in the dynamic iGaming market. The company’s focus on high-margin products and strategic partnerships has driven significant growth, positioning it well for continued expansion and profitability.
By maintaining a strong balance sheet and managing debt effectively, Bragg is well-equipped to capitalize on emerging opportunities and solidify its standing as a leading iGaming technology provider. The reiteration of its full-year guidance underscores the confidence in its business model and strategic initiatives, promising continued success and value creation for its shareholders.