Bragg Gaming Group’s Chief Strategy Officer, Yaniv Spielberg, has lauded the ‘momentum’ and ‘strong growth’ in Q1 stemmed from igaming market expansion.
Publishing its first-quarter results for the period ending March 31, Bragg reported record revenue figures of $20.5m, up 36.4% year-on-year. This was primarily due to ‘significant customer growth, market expansion and Proprietary Games Development Initiatives’.
In April, Bragg took its content into Ontario via a deal with 888casino and it expects to enhance its presence in the Canadian province with other ‘large’ operators. Additionally, it launched in the Bahamas in late Q1 and has further plans to expand in regulated US markets.
Spielberg commented: “Our momentum continued in the first quarter as the successful execution of our growth initiatives focused on offering more higher-margin proprietary and third-party exclusive games and our igaming PAM, combined with ongoing expansion into new regulated igaming markets, drove strong growth in our operating results.”
Wagering revenue remained consistent year-on-year at $4bn, reflecting changes in product mix towards PAM, managed services and proprietary content, which Bragg says drove improved gross profit and adjusted EBITDA.
Displaying its improved profitability, Bragg reported a gross profit of $10.6m, up 50.6% YoY, mainly driven by the improved revenues and a higher proportion of sales attributed to igaming and turnkey services which are associated with a lower cost of sales.
Similarly, net loss reduced from $1.2m last year to $0.7m in Q1 of 2022, helped by higher gross profit and lower transactional costs, though this was offset by higher staffing costs and marketing expenses alongside higher depreciation and amortization.
“In the first quarter, we generated quarterly record revenue of $20.5m, gross profit of $10.6m, and Adjusted EBITDA of $3.2m,” Spielberg continued.
“These record financial results reflect, in part, growing revenue from higher gross margin in-house content and platform revenue which together drove record quarterly gross profit margin of 51.8%, an 80 basis point improvement over our prior gross profit margin record achieved in 4Q 2021.
“The record quarterly margin supports our confidence that we have the right operating plan in place to achieve our goal of growing gross profit margin to approximately 60% by 2024.”
Finalizing its update to stakeholders, the company has also reiterated its guidance for full-year results, forecasting revenues of $72m-$76m and an adjusted EBITDA of $10.0m-$11.1m.
Speilberg concluded: “We are off to a strong start to the year and while we are reiterating our guidance for 2022 full-year revenue and Adjusted EBITDA, given it is still very early in the year, we believe our continuing business momentum positions Bragg for the potential of another strong year of outperformance relative to this outlook.
“Finally, our attractive business model provides us with the flexibility to fund our aggressive new market expansion and proprietary game development growth initiatives through organic cash flow growth, which will support our goal of delivering new near- and long-term shareholder value.”