Bragg Gaming Group reports near 52% EBITDA growth after record Q3 performance

Bragg Gaming Group CEO Yaniv Sherman reflected on the company's ‘strong performance’ in Q3, in which it generated record revenues after gathering ‘consistent’ operating momentum across key global markets
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Bragg Gaming Group CEO Yaniv Sherman reflected on the company’s ‘strong performance’ in Q3, in which it generated record revenues after gathering ‘consistent’ operating momentum across key global markets. 

Setting new financial records in its Q3 report, Bragg declared total corporate revenues of $20.9m, up 62.3% year-over-year, compared to $12.9m in Q321. 

This was recorded from a wagering handle of $4.6bn, an increase of 42.4% YoY compared to Q321’s figure of $3.2bn, driven by a change in its product mix towards turn-key customers, managed services and proprietary content. 

Subsequently, this led to improved profitability, with Bragg’s adjusted EBITDA reaching $2.2m, up 51.6% from Q321’s $1.5m. This was achieved at an adjusted EBITDA margin of 10.7%. 

Moreover, the firm achieved gross profit of $10.4m, up 58% YoY from $6.6m in Q321, representing a gross profit margin of 50%.

“Our record third-quarter results reflect significant year-over-year revenue, gross profit and Adjusted EBITDA growth highlighting our progress in providing value-added content and services to a growing global base of customers across regulated iGaming markets, including in North America,” said Sherman.

“In the third quarter of 2022, we generated third-quarter records for revenue of $20.9m, gross profit of $10.4m, gross profit margin of 50.0%, and Adjusted EBITDA of $2.2m.

“Our operating momentum has been consistent throughout the year as for the first nine months of 2022 revenue, gross profit and Adjusted EBITDA have improved significantly, compared to the same period in 2021.”

During Q3, Bragg rolled out its new Remote Game Server using the Oryx tech stack, and has gone live in Connecticut and Michigan as well as Ontario. 

In the Great Lake state, the firm has taken its proprietary US content live with three operators as it continues to grow in regulated igaming jurisdictions.

Meanwhile, a major operational development was reached in September when Bragg secured a deal with Bally’s Interactive which will launch Bragg’s slot studio content and third-party titles from Bragg’s existing portfolio. 

Under the same deal, Bragg will distribute titles via its RGS from a number of Bally’s Interactive third-party partner studios, creating a new distribution channel for igaming content in the US. 

Sherman added: “As a content-led business, we are focused on accelerating the number of proprietary games we develop and growing the number of exclusive third-party games from leading studios, such as Sega Sammy Creation, Bluberi and Bally’s Interactive’s Gaming Arts and King Show Games studios, we can offer our customers. 

“Our library of proprietary and exclusive third-party games has grown consistently throughout 2022 and that growth will accelerate in 2023 and beyond. We also continue to further differentiate our content library through new exclusive igaming content distribution agreements with leading third-party game development studios. 

“Our expanding library of proprietary and exclusive third-party content will serve us well as we deploy these new games over our newer tech stack with customers in markets we already serve, as well as when we enter new markets, particularly in North America.”

Following the firm’s strong performance, the corporate leadership has reiterated its full-year guidance for both revenue and adjusted EBITDA, which has been set at $76-80m and $10-11m respectively.

Providing an initial expectation for 2023, the anticipation is that of low double-digit revenue growth and full-year adjusted EBITDA growth of at least 20%.

“Our positive Adjusted EBITDA, combined with the capital we raised in the third quarter positions us to continue to invest to drive further growth,” Sherman continued “Reflecting our strong performance through the first nine months of the year and our expectations for consistent operating execution in the fourth quarter, we are reiterating our guidance for 2022 full-year revenue and Adjusted EBITDA.

He continued: “Looking ahead, we expect our consistent execution against our strategy and growth initiatives will drive further revenue and Adjusted EBITDA growth in 2023. Our expectation that we will continue to deliver top-line and Adjusted EBITDA growth in what is currently a highly dynamic and volatile environment is a testament to our team members ability to execute on our focused strategies, which positions us well to deliver near- and long-term shareholder value.”