UK and Netherlands entries help Bragg Gaming grow revenue by 14.4% in Q4
Bragg Gaming Group has reiterated its full year 2022 revenue guidance of €68m-€72m after reporting a 14.4% revenue increase in Q4 2021 to €15.8m.
The group’s adjusted EBITDA projection for 2022 is €9.5m-€10.5m. Bragg generated gross profit of €8.0m in Q4, up 33.3%, giving a gross profit margin of 51.0%, up from 43.8% in Q4 2020.
Adjusted EBITDA for the quarter came to €1.5m, a modest improvement year-on-year from €1.3m, at a margin of 9.8%, also up from 9.1% in the prior year period.
The firm was able to improve its Q4 revenue, gross profit and EBITDA margins in spite of a reduction in the total amount wagered on its products, which dropped 8.4% to €3.1bn.
Net loss for the period, however, was €1.6m – though this still represents a marked improvement over the €5.3m net loss posted in Q4 2020.
The quarter meant full-year revenue amounted to €58.3m, a 25.6% improvement over 2020, while adjusted EBITDA grew 29.8% to €7.2m. The total amount wagered was up 21.1% to €14.3bn.
Net loss for the full year was €7.5m, as the supplier almost halved the €14.6m net loss it recorded in 2020.
“The 2021 fourth quarter concluded an active and productive year for Bragg as continued execution on our key strategic initiatives drove significant operational accomplishments and strong financial results,” said Yaniv Spielberg, chief strategy officer for Bragg Gaming.
“In the fourth quarter we went live with our iGaming offering in the newly regulated Netherlands market and also went live in the UK, the world’s largest iGaming market.”
The firm entered the Netherlands in January 2021 through a deal with JVH Gaming and Kambi, and subsequently received its UK supplier licence, which cleared the way for market entry in November.
“Our planned entry into the US and Canada, as well as additional regulated European markets this year, has Bragg on track to grow our year-end 2022 TAM to more than $21bn.
“The strong performance we have achieved in a number of our recently entered markets as well as our existing markets in the early months of 2022, and the ongoing roll-out of our new proprietary games, amplifies our confidence for continued operating momentum,” Spielberg concluded.
The brand has also continued to make progress on closing its $30m acquisition of Spin Gaming, it said, having completed all of its regulatory requirements relating to the deal.
The acquisition is expected to complete in the coming months, and Bragg said it had made substantial progress on the integration of the Spin Games technology platform with its Oryx platform, and has submitted the integrations for approval with several approved US gambling laboratories.
The pace of its deployment in the US will gain significant benefit from Spin Games’ existing partnerships there, as it currently holds deals with more than 30 US iGaming operators.
Bragg recently strengthened its team’s M&A capabilities for the future with the hire of finance specialist Lara Falzon as its president and chief operating officer.