Bragg Gaming Group
BRAGG GAMING GROUP REPORTS RECORD SECOND QUARTER RESULTS AS REVENUE RISES 34.2% TO €20.8 MILLION (USD $21.3 MILLION)
New Customers, Rollout of New Proprietary Games and Market Expansion in Europe and North America Driving Consistent Revenue Growth
Gross Profit Rises 65.5% to Quarterly Record €11.6 Million (USD $11.9 Million); Gross Profit Margin Increases 1,060 Basis Points Year-over-Year and by 410 Basis Points from Q1 2022 to Quarterly Record 55.9%
Adjusted EBITDA Improves 62.9% Year-over-Year to €3.1 Million (USD $3.2 Million)
Raises Full Year 2022 Guidance for Revenue of €76-80 million (USD $78-82 Million) and Adjusted EBITDA of €10-11 million (USD $10-11 Million)
Bragg Gaming Group, a global B2B gaming technology and content provider, today reported record financial results for the second quarter ended June 30, 2022. The Company also provided an update on its strategic growth initiatives and raised its full year 2022 revenue and Adjusted EBITDA guidance.
Summary of Q2 2022 Financial and Operational Highlights
| Euros (millions)(1) | 2Q22 | 2Q21 | Change |
| Revenue | €20.8 | €15.5 | 34.2% |
| Gross profit | €11.6 | €7.0 | 65.5% |
| Gross profit margin | 55.9% | 45.3% | 1060bps |
| Adjusted EBITDA(2) | €3.1 | €1.9 | 62.9% |
| Adjusted EBITDA margin | 14.9% | 12.3% | 260bps |
| Wagering revenue | €4.2B | €3.8B | 9.0% |
- Bragg’s reporting currency is Euros. The exchange rate provided for U.S. dollars is 1.023. Due to fluctuating currency exchange, this rate is provided for convenience only.
- Adjusted EBITDA is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.
Chief Executive Officer Commentary
“Our strong second quarter results include significant year-over-year growth, as well as quarterly-sequential improvements for revenue, gross profit, gross profit margin and Adjusted EBITDA,” said Yaniv Sherman, Chief Executive Officer for Bragg Gaming Group. “In the 2022 second quarter, we generated quarterly records for revenue of EUR €20.8 million (USD $21.3 million), gross profit of EUR €11.6 million (USD $11.9 million), gross profit margin of 55.9%, and Adjusted EBITDA of EUR €3.1 million (USD $3.2 million). Our operating momentum highlights our continued success in serving a growing base of customers in an expanding number of regulated global iGaming markets, with turnkey iGaming solutions that power their businesses, including proprietary and exclusive third-party content.
“Following the completion in June of our acquisition of Spin Games, Bragg possesses the product development capabilities, industry expertise and licensed footprint across Europe and North America to achieve further and consistent progress on our content and market expansion growth initiatives. Our content development and distribution efforts, led by our four in-house game studios, are focused on leveraging proprietary design, game mechanics and math capabilities to develop games that address local player preferences across European and North American markets. We expect to release approximately 22 proprietary games this year representing a 120% increase from 2021, with our game development roadmap poised to accelerate our new game releases next year and beyond. In addition, we will supplement our internal game development efforts with agreements for Bragg to exclusively distribute games from established popular third-party studios. We expect our execution against our content development and distribution strategy will result in a higher level of desirable ‘real estate’ allocation on leading iGaming operators’ sites, leading to higher player engagement that drives further top-line growth and margin improvement.
“The North American iGaming market continues to grow. We expect to leverage our expertise and differentiated product and technology advantages to drive consistent growth with leading operators in these markets. This includes content localization and customization that addresses popular online and land-based themes.”
Mr. Sherman concluded, “Reflecting our strong performance through the first half of the year and our ongoing business momentum, we are raising our guidance for 2022 full year revenue and Adjusted EBITDA to new ranges of EUR €76-80 million (USD $78-82 million) and EUR €10-11 million (USD $10-11 million), respectively. As demonstrated by our operating results to-date in 2022, our success with these efforts is driving strong top-line growth and margin improvement, highlighting our ability to deliver near- and long-term shareholder value.”
Second Quarter 2022 Financial Results and other Key Metrics Highlights
- Revenue increased by 34.2% to EUR €20.8 million (USD $21.3 million) compared to EUR €15.5 million (USD $15.9 million) in 2Q21.
- Wagering revenue generated by customers of €EUR 4.2 billion (USD $4.3 billion) increased from EUR €3.8 billion (USD $3.9 billion) in 2Q21. Wagering revenue in 2Q22 reflects a change in product mix towards PAM, managed services and proprietary content, resulting in improved gross profit and Adjusted EBITDA.
- Gross profit increased 65.5% to EUR €11.6 million (USD $11.9 million) from EUR €7.0 million (USD $7.2 million) in 2Q21, reflecting higher revenue and a 1,060 basis point year-over-year margin improvement to a quarterly record 55.9%.
- The margin expansion is primarily the result of the continued shift towards a higher proportion of revenues from iGaming and turnkey services, which have lower associated cost of sales when compared to games and content. The higher mix of iGaming revenues includes an increase in revenues from proprietary games which have no cost of sales.
- Net income for the period was EUR €0.1 million (USD $0.1 million), an improvement from net loss of EUR €2.3 million (USD $2.4 million) in 2Q21, primarily due to higher gross profit and lower professional fees and transactional costs, partially offset by an incremental increase in employee costs, sales and marketing expense, and higher depreciation and amortization.
- Adjusted EBITDA was EUR €3.1 million (USD $3.2 million), an increase of 62.9% compared to EUR €1.9 million (USD $1.9 million) in 2Q21. Adjusted EBITDA margin increased by 260 basis points to 14.9%, reflecting the Company’s increased scale and an improvement in the product mix of iGaming and turnkey services. Adjusted EBITDA margin decreased by 40 basis points on a quarterly sequential basis.
- Cash and cash equivalents as of June 30, 2022 was EUR €11.0 million (USD $11.3 million) which reflects the EUR €9.0 million (USD $9.2 million) paid in the quarter for the acquisition of Spin Games.
Raises Full Year 2022 Revenue and Adjusted EBITDA Guidance
Bragg today raised its outlook for 2022 full year expected revenue and Adjusted EBITDA to new ranges of EUR €76-80 million (USD $78-82 million) and EUR €10-11 million (USD $10-11 million), respectively. The midpoints of the 2022 revenue and Adjusted EBITDA guidance ranges represent growth of 34% and 46%, respectively, over the reported full year 2021 revenue and Adjusted EBITDA. The higher 2022 Adjusted EBITDA outlook includes the impact of continued investments in the business focused on driving further top-line growth. Bragg’s prior guidance for the 2022 full year was for revenue of EUR €68-72 million (USD $70-74 million) and Adjusted EBITDA of EUR €9.5-10.5 million (USD $9.7-10.7 million).
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Bragg Gaming Group
Bragg Rolls Out Premium Content Suite with Napoleon Romania
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Bragg Gaming Group has expanded its reach in Eastern Europe with the launch of its premium content suite with Napoleon Romania.
The company took to social media to declare that the move, as well as strengthening its presence in Romania, “expands our already fantastic partnership with the Superbet Group brand.”
“Napoleon Romania players now have access to a rich portfolio of Bragg’s exclusive online casino content and aggregated online casino content, featuring hit titles like Golden Gal’s Cash Towers, Almighty Pegasus and Big Roar. We’re also celebrating the launch of fan-favourite Royal Seven Deluxe,” the company commented.
The company particularly singled out Linda Zaumane, head of account management and Neill Whyte, Bragg’s chief commercial officer for thanks.
“Their hard work and leadership were instrumental in securing and executing this important launch!”
The post Bragg Rolls Out Premium Content Suite with Napoleon Romania appeared first on European Gaming Industry News.
Bragg Gaming Group
SCCG Announces Strategic Partnership with Bragg Gaming Group
SCCG Management, a leading advisory firm in the global gaming industry, has announced a strategic partnership with Bragg Gaming Group, a worldwide leader in iGaming technology and content solutions.
Through this partnership, SCCG will leverage its extensive global network to introduce operators to Bragg’s award-winning Player Account Management (PAM) platform. Bragg’s PAM delivers a fully managed, end-to-end solution that empowers online casino, sportsbook, and lottery operators with seamless integration, robust compliance support, automated KYC and fraud prevention tools, personalized CRM campaigns, and data-driven player engagement features.
With Bragg’s PAM, operators can manage their entire product suite across casino, sports, and lottery verticals through a single account and single wallet—driving stronger retention, higher lifetime value, and scalable growth across regulated markets.
SCCG is uniquely positioned to support the distribution of Bragg’s technology through its global client partner ecosystem, which spans over 130 partners worldwide. With deep relationships across operators, suppliers, and regulators, SCCG will ensure Bragg’s solutions are presented to the right partners in the right markets, accelerating adoption and maximizing impact.
In addition, SCCG will leverage its decades of experience in tribal gaming, where the company has built trusted relationships with tribal operators across North America. Through its Tribal Roadshow and ongoing collaborations, SCCG has consistently introduced innovative technologies that enhance tribal operations. By aligning Bragg’s leading PAM with these relationships, SCCG will provide tribal operators with advanced tools to streamline operations, strengthen compliance, and expand player engagement across both retail and online environments.
Stephen Crystal, Founder and CEO of SCCG Management, commented: “We are thrilled to partner with Bragg, whose PAM platform represents one of the most advanced and trusted solutions in the iGaming industry. At SCCG, we pride ourselves on connecting operators with technologies that drive sustainable growth and compliance across global markets. Bragg’s innovative platform and proven track record make them an ideal partner for operators seeking both efficiency and differentiation in highly competitive environments.”
Matevz Mazij, CEO, Bragg Gaming Group, said: “We’re thrilled to partner with SCCG Management, a respected leader in the global gaming industry. This strategic partnership is a pivotal step for Bragg Gaming Group, aligning two companies dedicated to shaping the future of online gaming.
“SCCG’s unparalleled global network provides the perfect channel to introduce operators to our award-winning Player Account Management (PAM) platform and expand our footprint with operators worldwide.
“This collaboration will enable us to deliver our scalable, responsible, and player-focused solutions to more partners, accelerating the distribution of our technology and strengthening our position as a global leader in iGaming technology.”
The post SCCG Announces Strategic Partnership with Bragg Gaming Group appeared first on Gaming and Gambling Industry in the Americas.
Bragg
Luka Pataky Joins Bragg Gaming Group as EVP of AI and Innovation to Spearhead Growth and Usage of New Technologies Across Business
Bragg Gaming Group, a global leader in next-generation iGaming content and content delivery, engagement and player management technology, today proudly announces the appointment of Luka Pataky as Executive Vice President (EVP) of AI and Innovation.
In his new role, Pataky will work closely with Bragg’s technology teams to develop a 360॰ AI strategy, integrating AI into product development and design, user experience, external communications, safer gambling initiatives and internal processes to drive growth and efficiency.
This strategic leadership addition comes as part of Bragg’s commitment to the leveraging of data, advanced analytics and powerful AI to enhance user experience, player engagement, maximize revenue potential, and drive smarter, more efficient iGaming operations.
Luka Pataky boasts a strong pedigree in AI and technology, with over a decade of experience at Sportradar, a company at the forefront of sports data and content. His tenure at Sportradar culminated in his role as Senior Vice President for Automated Content, where he spearheaded an initiative from its inception to a production-ready, scalable system that ended up powering over 300,000 sports events per year with a team of over 70.
In this leadership position, he was instrumental in revolutionizing sports content creation through AI, Computer Vision, and Deep Learning, successfully bringing real-time data collection solutions to production, being the driving force behind integrating acquired tech businesses, thereby turning advanced technology into significant business value through the optimization of operating costs and business efficiencies.
Prior to his SVP role, Pataky played a key role in establishing Sportradar’s innovation unit, a hub for pioneering new ideas, implementing processes that enabled faster experimentation and fostering a culture of rapid prototyping and testing.
As part of this, he also led the team responsible for scaling Sportradar’s startup program and forging strategic innovation partnerships with universities and innovation labs. In his multiple innovation-based roles, he demonstrated a consistent focus on leveraging AI and data analysis to identify and develop new product opportunities and strategic initiatives.
His extensive experience across these leadership roles highlights his proven ability to lead large, cross-functional teams, manage complex technological advancements, and strategically integrate new ventures, underscoring his expertise in driving growth and innovation within the technology sector.
Known globally for its award-winning iGaming content and technology solutions, Bragg has consistently championed the integration of artificial intelligence technology across its business model, as typified by the introduction of an AI-powered Games Recommendation System into its Fuze
marketing and promotional toolset.
The Company has also utilised AI extensively across its responsible gambling work, using these new technologies and extensive data collection to more effectively identify at-risk gamblers.
“Luka Pataky is the ideal hire for Bragg, as we look to supercharge our AI and innovation ambitions,” said Matevž Mazij, Chief Executive Officer at Bragg. “His extensive experience of being at the forefront of this gamechanging technology and innovation will help springboard Bragg into the next iteration of our growth. With the increased adoption of AI across the iGaming industry, Bragg has once again shown its commitment to staying ahead of the competition.”
“Bragg has always struck me as a company where technology and innovation are key drivers,” said Luka Pataky. “This is a company which is always pushing the boundaries, using its extensive knowledge and the skills of its teams to create and set new trends. It sits on vast amounts of user data and insight, which we can turn into intelligence that will power next generation player engagement. Introducing AI at all levels of product and operations will make it perfectly positioned for future growth.”
“I am looking forward to playing a role in accelerating Bragg’s journey to becoming an AI-first company. I have no doubt we’ll be able to compliment and elevate Bragg’s already amazing next generation player experiences for its operator partners and drive value for the business.”
The post Luka Pataky Joins Bragg Gaming Group as EVP of AI and Innovation to Spearhead Growth and Usage of New Technologies Across Business appeared first on Gaming and Gambling Industry in the Americas.
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