Bragg Gaming reports a 10.4% growth in revenue in 2023

Bragg Gaming Group is a global B2B gaming technology and content provider. The company is based in Toronto, Canada, and has recently announced its Year-over-Year (YoY) earnings of 2023. 

The results of the company’s 2023 financial report were communicated in a pre-announcement ahead of its full earnings call on the 26th of March 2024. 

The company has reported a full year rise in revenue of 10.4% in 2023. This rise is equivalent to $137.1 million CAD. 

Adjusted EBITDA experienced a growth of 26.3%, a value that is equivalent to $22.3 million CAD. 

The full year gross profit of Bragg Gaming Group rose by 10.8%, equivalent to $73.2 million CAD. This reflects a higher revenue in gross profit of 53.4%. 

To discover the full annual financial results of Bragg Gaming Group in the full fiscal year of 2023, keep reading this article where we will delve into these values in substantially more detail. 

The 4Q23 and FY23 of Bragg Gaming Group 

The Fourth Quarter 2023 Financial Results 

The Key Highlights of the 4Q23 

• Revenue: Decreased by 1.4%, the equivalent of which is $34.3 million CAD, when compared to the 4Q22 which reported a total of $34.8 million CAD. 

• The wagering revenue generated by customers: Amounted to $8.9 billion CAD, exhibiting an increase when compared to the $7.5 billion CAD generated in the 4Q22. 

• The gross profit: Decreased by 7.3% to $17.6 million CAD when compared to the $19.1 million CAD accrued in the 4Q22. 

• The adjusted EBITDA: Experienced a decrease of 23.7% to $4.1 million CAD when compared to the $5.4 million CAD reported in the 4Q22. 

• The operational loss for the period: $0.6 million CAD was reported, resulting in a decrease of $0.9 million CAD from the 4Q22. 

The Full Fiscal Year 2023 Annual Financial Results 

The Key Highlights of the FY23 

• Revenue: An increase of 10.4% to $137.1 million CAD was experienced when compared to the $124.2 million CAD generated in 2022. 

• Wagering revenue generated by customers: An increase equivalent to $32.9 billion CAD when compared to the $26.0 billion CAD generated in 2022. 

• Gross profit: An increase of 10.8% equivalent to $73.2 million CAD when compared to $66.1 million CAD generated in 2022. This represents a gross margin of 53.4%. 

• Adjusted EBITDA: An increase of 26.3% equivalent to $22.3 million CAD when compared to $17.7 million CAD generated in 2022. 

• Cash flow from operations: Total generated was $17.2 CAD, resulting in an increase of $8.8 million CAD when compared to the $8.5 million CAD generated in 2022. 

Comments made by Bragg Gaming's Chief Executive Officer

Matevž Mazij, the Chief Executive Officer at Bragg Gaming Group, made the following statement with regards to the financial results of the full fiscal year of 2023: 

“Through Bragg’s strategic efforts to establish the business as a premier content-focused iGaming B2B provider and our meticulous control over expenses, we achieved growth in revenue, gross profit, and adjusted EBITDA in 2023, along with a 210bps improvement in adjusted EBITDA margin to 16.3 per cent.  

“These achievements are attributed, in part, to a reconfiguration of our revenue mix, favoring higher-margin products like internally developed proprietary content, and our comprehensive player account management platform, all while maintaining stringent cost control measures.” 

In conclusion, Mazij made the following statement: 

“By continuously expanding our portfolio of higher-margin proprietary and exclusive third-party games to a wider range of new partners at an accelerated pace, we are well positioned for long term growth in top-line revenue, gross profit, and Adjusted EBITDA, along with improved operating margins. 

“Our strategic actions have positioned Bragg as an essential content source for leading international iGaming operators, strengthening our groundwork for consistent and profitable development. With confidence, we affirm our readiness with the appropriate strategies, financial strength, and infrastructure to maintain our business momentum while executing initiatives that foster cash flow growth and generate added value for our shareholders.” 

The challenges encountered in the Netherlands 

With reference to the market performance of Bragg Gaming Group in the Netherlands, Mazij highlighted Bragg Gaming’s “dominant position as the leading PAM provider” in the Dutch market. 

Due to the increased competition in the market and several new regulations being enforced, there were a number of challenges that were encountered in the Dutch gaming market. 

With regards to these challenges, Mazij remarked on the following: 

“Upon closer examination of the Dutch market, it is evident that challenges have arisen due to increased competition and new regulations since July. These challenges are expected to persist, with further adjustments anticipated in 2024.  

“Additionally, in Q4 2023, the company extended its agreement with Entain Plc to supply its PAM platform to BetCity.nl, Entain’s Dutch iGaming operator, until 2025. However, this extension required renegotiating terms. 

“These dynamic variables reduce customer concentration, and at the same time our broader business is thriving and poised for sustained, increasingly profitable growth.” 

The expansion of Bragg Gaming Group in North and Latin America 

Some of the exceptional in-house brands that belong to Bragg Gaming Group include the following: 

• Wild Streak Gaming 

• Spin Games 

• Atomic Slot Lab 

• Indigo Magic 

• Oryx Gaming 

Through the appropriate authorization, the RGS (Remote Gaming Server) belonging to Bragg Gaming Group can deliver their developed online casino games to over 25 global regulated iGaming markets. 

Amongst others, the North American gaming markets include the following: 

• Ontario 

• New Jersey 

• Michigan 

• Pennsylvania 

In addition to this, some of the iGaming markets located in Europe that Bragg Gaming Group is authorized to share their online casino games in include the following: 

• Malta 

• Italy 

• Spain 

• Sweden 

• The Netherlands 

• Germany 

• The United Kingdom 

In Latin America, on the other hand, the games provider could only distribute its online casino games in Colombia up till now. 

In recent weeks, however, Bragg Gaming Group has announced that it has received a license to distribute its games to Peru, making this country the second Latin American jurisdiction in which the company can share their massive games portfolio. 

More about Bragg Gaming Group 

Bragg Gaming Group is a global B2B gaming technology and content provider that describes itself in the following way: 

“From our offices in Toronto, Las Vegas, Reno, London, Ljubljana, Malta and Chennai, we serve online and land-based gaming operators with proven content, unrivaled technology and expert managed services: a complete solution for online and omni-channel casino, sportsbook and lottery brands.” 

In addition to this, Bragg Gaming Group goes on to describe itself as follows: 

“Bragg Gaming Group Inc. is a Canada-based content-driven business-to-business (B2B) iGaming technology provider serving online and land-based gaming operators with its content and technology. The Company’s suite of iGaming content and technology, commercial relationships and operational licenses allows it to offer gaming solutions in regulated online gaming markets globally.  

“It's suite of products includes a player account management (PAM) platform, which provides the tools required to operate an online gaming business, including player engagement and data analysis software. Its Bragg Studios offer casino gaming titles from in-house brands Wild Streak Gaming, Spin Games, Atomic Slot Lab, Indigo Magic and Oryx Gaming.  

“Its content portfolio is complemented by a range of exclusive titles from selected studio partners, which are powered by Bragg: games built on Bragg remote games server (Bragg RGS) technology, distributed via the Bragg Hub content delivery platform.”