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.

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Data, technology and broadcast company Genius Sports released today its fourth quarter and full year 2022 financial report, posting an impressive increase in revenue and a significant drop in the group’s net loss.

Quarterly and Full-Year Revenue

Genius Sports generated $105.34 million in revenue in the fourth quarter and $341.03 million in the full year ended December 31, 2022, posting increases across all its divisions both in the quarterly and full-year readings.

Commenting on the results, Mark Locke, co-founder and chief executive officer of Genius Sports, outlined the company’s success in delivering on its forecast in each quarter as a display of its “commitment to executing the financial and strategic plan” set forth at the start of 2022.

We remain relentlessly focused on balancing investment in our highest growth initiatives, while still demonstrating the unique operating leverage of our business model.

Mark Locke, co-founder & CEO, Genius Sports

Mark Locke is convinced that in 2023, the company should be able to capitalize on its global competitive position and “capture the immense opportunity” ahead of it.

Across the divisions, Betting Technology, Content & Services was up 21.5% in the quarter and 18.1% in the full twelve months; Media Technology, Content & Services increased by 50.4% in Q4 and 71.2% in full-year 2022; and, Sports Technology & Services contributed to the total with an increase of 8.6% in Q4 and 31.9% in the year.

Adjusted EBITDA, Net Loss

Adjusted EBITDA in Q4 was $2.66 million, up 121% year-over-year, while for the full year 2022, it was $15.79 million, a nine-fold increase as compared to 2021. Both group revenue and group adjusted EBITDA exceeded Genius Sports’ guidance of $340 million and $15 million, respectively.

Group net loss in Q4 was $127.72 million, up two-and-a-half times from $53.29 million in Q4 2021. For the full year, the group’s net loss fell by 69.4% to $181.64 million ($592.75 million in 2021).

Our expectation of nearly tripling our Group Adj. EBITDA and generating free-cash-flow in the second half of 2023 is the direct result of a cost base that does not need to grow in line with revenues moving forward.

Nick Taylor, CFO, Genius Sports

Based on the 2022 results and current performance, Genius Sports maintained its 2023 revenue and adjusted EBITDA guidance of $391 million and $41 million and expects to generate positive free cash flow in the second half of the year.

“With $159m of total cash on our balance sheet, zero debt financing, and our legacy warrants now removed, our shareholders are well positioned to capture the benefits of profitability and cash flow acceleration,” Taylor concluded.

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Online gaming and sports betting operator Rush Street Interactive, Inc. (RSI) published its financial report for the fourth quarter of 2022 and the full year ended December 31, 2022, posting revenue increases of 27% and 21%, respectively.

Strong Revenue Growth

RSI generated in the last business quarter of 2022 revenue of $165.5 million to contribute to a full-year 2022 revenue of $592.2 million. For comparison, in Q4 2021 the Chicago-based gaming company registered revenue of $130.6 million, while for the full year, it amounted to $488.1 million.

Commenting on the results, Richard Schwartz, chief executive officer of RSI, outlined that the strong quarter and record results for the year were driven by a growth of 95% in RSI’s Latin American and new North American markets the company had launched operations after 2020.

Net Loss, Negative Adjusted EBITDA

The company’s net loss in Q4 2022 was $31.1 million, registering a decrease of 18.4% from $38.1 million in the fourth quarter of 2021. Quarterly adjusted EBITDA was a loss of $17.3 million, down 44.6% from the adjusted EBITDA loss of $31.2 million in Q4 2021.

For the full year, net loss significantly increased to reach $134.4 million, up 88.9% from $71.1 million in the year prior. Consequently, full-year adjusted EBITDA came at negative $91.8 million to register an increase of 41% from $65.1 million in 2021.

“We expect to achieve positive Adjusted EBITDA for the second half of 2023 and continue to be selective as we prioritize investments in markets with higher returns,” Schwartz said.

2023 Revenue Guidance

RSI used the report to initiate revenue guidance for the full year 2023, expecting to achieve revenue of between $630 million and $700 million, based on certain assumptions, including professional and college sports calendars remaining intact, the company maintaining operations in all jurisdictions it operates now, and that results from new jurisdiction launches are excluded.

“Looking forward, we will continue to focus on earning and retaining customer loyalty, by treating them well, being thoughtful, developing seamless experiences and reducing friction at every possible point. We have built our proprietary platform and culture around a disciplined operating philosophy, which is reflected in our results,” Schwartz concluded in his comments.

Other Financial Highlights

RSI noted that its adjusted advertising and promotions expenses in the fourth quarter marginally dropped to $63.2 million, as compared to $64 million in the respective quarter of 2021, while for the full year, there was an increase of 16.9% to $218.4 million ($186.9 million in 2021).

The number of real-money monthly active users increased proportionally in the quarter and the year: 22% in Q4 and 29% in full-year 2022, allowing RSI to register average revenue per monthly active user of $327 in the fourth quarter and $315 during the year. The full-year result is down 9% year-over-year.  

At the end of the reported period, December 31, 2022, RSI’s cash balance stood at $180 million of unrestricted cash and cash equivalents.

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