Global B2B online gaming technology supplier, Bragg Gaming Group, released today its financial report for the first business quarter of 2023, posting an impressive performance across all key metrics.
Increases across All Key Metrics
Bragg Gaming Group posted for the first three months of 2023 revenue of €22.9 million ($25.2 million), up 18.1% from €19.4 million ($21.3 million) registered in the first quarter of 2022. Q1 2023 revenue was down 3.4% compared to €23.7 million ($26.1 million) the group reported in Q4 2022.
Commenting on the results, Bragg’s chief executive officer Yaniv Sherman outlined that the quarterly results were influenced by “growing contributions from higher margin proprietary and exclusive third-party games, and platform solutions” which contributed to a total of “170-basis point year-over-year improvement” in the company’s gross profit margin.
Q1 2023 gross profit of €12.2 million ($13.4 million), up 22% to €10.0 million ($11.0 million) in Q1 2022, contributed to Q1 2023 gross profit margin of 53.5%, up from 51.8% in Q1 2022. The quarterly gross profit figure was helped by a change in the group’s product mix towards turnkey PAM customers, managed services and proprietary content.
Adjusted EBITDA in the first quarter of 2023 was €3.9 million ($4.3 million), posting an increase of 28.1% year-over-year (€3.0 million ($3.3 million) in Q1 2022), and Adjusted EBITDA margin also improved, from 15.7% in Q1 2022 to 17% in the reported quarter now.
The higher gross profit and lower corporate, professional and sales and marketing costs, which were partially offset by increases in total employee costs, depreciation and amortization, and IT and hosting costs, resulted in a net loss of €0.5 million ($0.6 million) for the quarter, down from €0.7 million ($0.8 million), or 28.6%, for Q1 2022.
At the end of the quarter, Bragg Gaming Group had cash and cash equivalents of €15.1 million ($16.6 million) and net working capital, excluding deferred consideration of €7.7 million ($8.5 million). At the end of the previous quarter, December 31, 2022, those figures were €11.3 million ($12.4 million) and €6.6 million ($7.3 million), respectively.
Maintains Full-Year Revenue and EBITDA Guidance
Bragg Gaming reiterated its revenue and Adjusted EBITDA guidance for the full-year 2023, expecting revenue of €93-€97 million ($102.2-$106.6 million) and Adjusted EBITDA of €14.5- €16.5 million ($15.9-$18.1 million), representing increases of 10% and 20%, respectively.
“We continue to make consistent progress in scaling the distribution of our new in-house developed and exclusive third-party content, launching with an additional six operators in three North American markets and eight operators in five European markets to date in 2023, including our first entry with new proprietary content in Pennsylvania, Mexico, Italy and Belgium,” Sherman continued with his comments.
Just recently, Bragg announced an agreement with Rush Street Interactive (RSI) that allowed its gaming content and solutions to go live in Pennsylvania via the BetRivers and PlaySugarHouse brands and further expand the group’s US presence, while April saw the business launch content with Caliente Interactive in Mexico and partner with GAMOMAT for content in Italy.