Bragg Gaming lately announced that it achieved an all-time overhead income, overall revenues, and regulated EBITDA for 2022 results, which concluded on the last day of the year.
Bragg Gaming saw a remarkable magnification in profit during the quarter, increasing by 50.3% YoY to €23.7m (£20.8m/$25.5m). Meanwhile, the all-year-round profit was €84.7m, representing a 45.2% YoY increase.
The CEO of Bragg, Yaniv Sherman lauded the reached outcome as “transformational” and an indication of the company’s augmentation throughout the year.
Yaniv Sherman indicated the capability of company to achieve strong growth in key financial metrics. These results indicate that Bragg had a reliable and powerful finish to 2022 and that its business game plan is paying off.
The company not only completed the set problems but also beat the expectations, which indicates that the company outperformed even its internal targets. This could be a result of a variety of factors, including successful product launches, increased demand for Bragg’s offerings, or improved operational efficiency.
The mind-blowing achievements demonstrate Bragg’s significant triumph as it expands beyond the central-European casino markets to turn into a Mondial provider of meaningful offerings with a wide distribution network across European countries and North America. 2022 has been a successful year with lots of events for Bragg. One of those events was the grant of provider licenses in the Bahamas as well as in Ontario in March.
The company’s $30.0m procurement of Spin Games was also approved for a license in Pennsylvania and completed in June. Moreover, Bragg guaranteed $8.7m in funding from Lind Global Fund and known in September the fortification of its businesses under s solo brand.
Round year output
The Netherlands showed to be a major contributor to Bragg’s generated income for the year, as its gambling market set up on October 1, 2021. This led to a huge and vital revenue growth for Bragg in 2022, which grew by 533.7% to reach €36.8m in comparison to the prior year.
Another great revenue-generating territory for Bragg was Curaçao, which yielded €17.2m, while Malta contributed €14.6m. The rest of the profit was derived from various other countries, including the United States, Serbia, as well as Croatia, and Romania.
Bragg experienced an expansion in its cost of revenue for the round-year, which amounted to €39.6m, marking a rise of 32.1% from the previous year. Despite this, the company’s gross receipt climbed by 59.1% to reach €45.0m.
In addition, Bragg saw an enlargement in expenses, which rose from €34.6m to €46.7m. The biggest expense category was employee costs, which amounted to €23.1m. Depreciation and amortization spending followed at €8.4m, and occupational fees reached €3.4m.
Other expenses like sales and marketing, also corporate and IT contributed to the overall spending list. Bragg’s financial report showed that while they recorded a total gain of €854,000 from three sources – derivative liability, consideration receivable, and deferred consideration – they also reported an operating loss of €828,000. However, it is a significant betterment from the €6.3m loss they recorded in 2021.
Net interest expense increased to €1.0m from €340,000, resulting in a pre-tax loss of €1.9m. After accounting for income tax at €1.5m, Bragg’s net loss for the year amounted to €3.4m, which was a 53.6% decrease from the previous year.
On a positive note, Bragg’s adjusted EBITDA for the year was €12.1m, reflecting a 64% growth from the previous year. Additionally, the company’s betting profit enlarged by 24%, amounting to €17.7m.
Fourth quarter results
Bragg’s overall income for the quarter amounted to €13.0m, reflecting a significant increase of 61.1%. The company explained that enlargement with an accent on PAM clients, regulated services and winning content. In the result, Bragg was delighted to publish its remarkable result in managed EBITDA, which was increased by 128.3% to reach 3.6 million euros.
In addition, the company’s betting revenue was €5.1m, marking a substantial increase of 65.4% compared to 2021’s quarter. Bragg’s operating profit for the quarter also showed improvement, amounting to €162,000, a significant turnaround from the operating miss of €1.8m recorded in Q4 2021.
Despite incurring a net deprivation of €900,000 for the quarter, Bragg’s financial performance demonstrated enhancement, reflecting a significant reduction from the net loss of €2.0m recorded in the fourth quarter of 2021.
2023 Goals
In light of its impressive financial output, Bragg has recently revised its 2023 plans and predictions, setting it within a range of €92.0m to €97.0m. In case they achieve a central digit of this range, it will reflect an impressive growth rate of 12%.
Moreover, to updating its revenue leadership, Bragg has also revised its regulated EBITDA projections to fall in €14.5m–€16.5m range. Achieving the center of this range would represent a remarkable growth each year with a rate of 28%. These upward revisions reflect the company’s confidence in its prospects and its ability to continue delivering strong financial performance in the years ahead.
