Bragg expects €93-97m for FY23 as transatlantic sports operator deals rollout

Bragg expects €93-97m for FY23 as transatlantic sports operator deals rollout

After reporting a strong end to 2022 trading, Bragg Gaming anticipates an uptick in revenue by between 10% and 15% this year, having enhanced its presence across both Europe and North America.

Lauding 2022 as a ‘transformational year’ for Nasdaq company, Bragg was able to close the year with a stronger standing in international sports betting, having signed deals with Belgium’s Napoleon Sports and Casino, as well as taking content live throughout the US.

Headline figures saw Bragg register group-wide full year revenue of €84.7m, up 45.3% on prior year results of €58.3m, sitting alongside an increase in adjusted EBITDA by 64% to €12.1m (2021 €7.4m) with a margin of 14.2% (12.6%).

This in turn drove full year profit by 59.2% to €45.1m (€28.3m), whilst the group’s positive performance continued into the fourth quarter, which saw year-on-year revenue rise 50.3% from €15.8m to €23.7m.

Lastly, quarterly EBITDA for the final three months of the year increased 128.3% from €1.6m to €3.7m with a margin of 15.4% (10.1%), whilst gross profit stood at €13m (€8m), an uptick of 61.6%.

Bragg CEO, Yaniv Sherman, said: “Bragg concluded a transformational 2022 with another quarter of record results, as fourth quarter revenue, gross profit and adjusted EBITDA grew significantly compared to the fourth quarter of 2021 and exceeded our prior expectations.”

Specific deals highlighted by the firm included its aforementioned partnership with Napoleon Sports and Casino, marking its debut in the Belgian betting and gaming market, estimated by H2 Gambling Capital to be worth around $395m.

Meanwhile, in the neighbouring Netherlands, the group supported another company’s market debut, as ComeOn Gaming leveraged its full-service turnkey player account management (PAM) igaming platform and content systems upon securing its licence.

Across the North Sea, the group took select titles live with UK operators – as well as further west across the Atlaatic in the US – via an agreement with Sega Sammy Creation (SSC).

Focusing further on US developments, the company took its content live with prominent sportsbook and igaming firms in the heartland igaming state of New Jersey. 

This included Caesars Sportsbook and Casino, DraftKings, Rush Street Interactive’s  (RSI) BetRivers brand and Resorts Digital Gaming, whilst also going live in Michigan in partnership with BetMGM.

Commenting further on the firm’s 2022 trading, Sherman attributed the company’s production of a ‘steady stream of player-popular games’ and use of third-party titles, having launched 20 and 23 of each respectively.

He said: “This approach provides our operating partners with content that engages their players at higher levels, as the peak revenue generation of our newest premium proprietary and third-party games has been excellent and the performance tail for these games is significantly longer than similar games. 

“We are confident that the acceleration of our development of proprietary games and third-party exclusive games will help us gain further market share in our existing markets, as well as in new markets, particularly in North America.”

Looking to build on momentum gained in 2022, having closed the year with cash and cash equivalents of €11.3m, Bragg has updated its guidance and projects for 2023 trading.

The firm anticipates revenue growth of between 10% and 15% to between €93-97m and expects adjusted EBITDA to rise in tandem by between 20% and 36%, and between €14.5m-16.5m.

“We are executing well on our many growth opportunities to deliver profitable revenue growth and increasing cash flow going forward,” Sherman concluded.

“In addition to our content focus, our growth drivers include our ability to provide an industry-leading PAM and our state-of-the art FUZE game-optimization technology to drive higher player engagement which results in higher revenues and lifetime player value for iGaming operators. 

“We also expect the development and introduction of proprietary games in North America and Europe will accelerate in the second half of 2023, which will further benefit our margins and drive our operating momentum.”

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