Shares soar in Bragg Gaming after supplier boosts 2023 earnings guidance
Shares in Bragg Gaming Group have jumped nearly 13% after the firm hailed its transformation from regional supplier to global player in Q4.
The B2B content and technology provider has announced record-breaking financial results for Q4 2022 and the entire fiscal year 2022.In Q4, the company witnessed year-on-year revenue growth of 50.3%, amounting to €23.7m, while Bragg’s adjusted EBITDA also surged by 128.3%, reaching €3.6m, at a margin of 15.4%.
For the entire fiscal year 2022, the company’s revenue increased by 45.3% year-on-year to €84.7m, while its adjusted EBITDA rose by 64% to €12.1m, at a margin of 14.2%.
The New York-listed supplier stressed its transition from a regional supplier into a global company.
In 2022, the company consolidated its acquired companies, including Oryx Gaming, Spin Games, and Wild Streak Gaming, under a single brand – Bragg.
Bragg said it is now focused on integrating its various global business units into a competitive iGaming solutions provider that will offer an array of sports betting and iGaming products for operators worldwide.
“We are now going toe to toe with much larger competitors and aim to disrupt our field and gain additional market share,” CEO Yaniv Sherman said during the earnings call.
The company attributed its strong Q4 performance to the successful launch of its PAM and turnkey solutions for customers primarily in the Dutch market, such as ComeOn.nl and Betnation.nl, as well as Merkur in the Czech market.
Moreover, Bragg said in 2022 it launched 41 new online casino games in Europe, 18 of which were titles developed by its proprietary Bragg studios.In North America, the company launched 12 new online casino games, 11 of which were proprietary. The company also launched three proprietary land-based titles in North America last year.
Bragg CEO Yaniv Sherman: “These record results highlight Bragg’s ongoing substantial momentum as we continue to successfully diversify our operations from serving primarily central-European iGaming markets to become a global, content-led, iGaming solutions provider with extensive distribution across North America and Europe.”
When asked about the key lessons learned from Bragg’s foray into the US market, former 888 executive Sherman emphasised the importance of investing additional resources.
According to him, success in the US largely hinges on a company’s distribution capabilities and its ability to navigate the country’s unique regulatory compliance mechanisms.
He credited Bragg’s acquisition of Spin Games with providing the company a “shortcut” to establishing a foothold in the market, as they helped the company quickly adapt to US regulations, “which are very different from Europe or the rest of the world”.
Current trading & outlookBased on stronger-than-expected results in Q4 2022, Bragg Gaming Group has revised expectations for revenue and profit growth in 2023.
The company now anticipates a 10% to 15% increase in revenue, between a range of €93m and €97m.
Adjusted EBITDA is expected to increase by between 20% and 36%, within a range of €14.5m to €16.5m.
At the time of writing, shares in Bragg Gaming Group were trading nearly 13% higher.