In the ever-evolving world of iGaming, Bragg Gaming Group has reported a significant jump in revenue, marking a 49.9% surge year-on-year in the first quarter. The company attributes this impressive growth to the organic expansion of its existing client base, the onboarding of new customers across various jurisdictions, and particularly the robust performance of its in-house Wild Streak Gaming studio.
Key developments that underscored the first-quarter achievements were manifold, including Bragg obtaining a new license in the burgeoning market of Peru. The company also achieved exclusive launches of slot games in the United States in partnership with King Show Games and secured a consequential content agreement with Light & Wonder.
Yet, amidst these accomplishments, the overarching narrative for Bragg’s first quarter is the company’s exploration of strategic alternatives. A special committee has been established to deliberate on various strategic pathways, which could include potential group or asset sales, mergers, new financing strategies, or additional acquisitions.
Chief Executive Officer Matevž Mazij updated investors about the ongoing strategic review process, describing it as “encouraging progress.” Despite this behind-the-scenes activity, Mazij emphasizes that it is “business as usual,” and the company’s operations continue apace while the review process unfolds.
Mazij remained optimistic about the future, stating, “While the strategic review process progresses, we remain bullish on the opportunities ahead as the trend of igaming regulation continues worldwide. We see exciting potential in newly regulating markets like Brazil, Peru, and Finland, as well as untapped opportunities in regions like Africa that we are actively exploring.”
Changes seem imminent within Bragg’s leadership structure, evidenced by several high-profile movements at the senior level. Ronen Kannor announced his resignation as chief financial officer, with an exit planned by June 3. Notably, Neill Whyte, previously with Digital Gaming Corporation, has joined Bragg as the new chief commercial officer. Earlier, Lara Falzon departed from her roles as president and chief operating officer.
Mazij highlighted the company’s strategic positioning, “The strategic moves we have made have established Bragg as a vital content provider for premier international iGaming operators, reinforcing our base for reliable and lucrative growth. Equipped with the appropriate strategies, financial resources, and talent, we are well-prepared to maintain our business momentum while pursuing initiatives that foster cash flow growth and deliver increased value to our shareholders.”
Despite a favorable revenue uptick in the first quarter, Bragg’s bottom line was impacted by higher expenditure. The cost of revenue saw a 12.3% hike to €11.9 million, coupled with a 4.2% increase in selling, general, and administrative expenses to €12.4 million. Additionally, the company recognized a €645,000 loss on the remeasurement of deferred consideration and €592,000 in finance charges. Consequently, the pre-tax loss amounted to €1.9 million, a substantial deviation from the prior year’s €76,000 loss. After taxes, the net loss stood at €2.3 million, more than doubling the €1.0 million loss in 2023.
Adjusted EBITDA, too, experienced a decline of 12.8% in Q1. However, Mazij conveyed confidence in Bragg’s long-term growth trajectory, despite short-term financial headwinds attributed to the extension and renegotiation of its agreement with Entain to supply the PAM platform to BetCity.nl through 2025.
“Our proprietary and exclusive third-party content continues to gain ground with an increasing number of top-tier operators globally, and we introduced a total of 19 new exclusive titles worldwide in the first quarter of 2024,” Mazij stated.
Bragg is holding firm to its full-year financial projections, signaling confidence in its strategic direction. The group expects revenue in the range of €102.0 million to €109.0 million for 2024 and is forecasting adjusted EBITDA to be between €15.2 million and €18.5 million. This clear-headed tenacity—amongst introspective strategic considerations and executive changes—signals a company gearing up to bet on and shape the future contours of the global iGaming landscape.
