Bragg Gaming Group Reports Q3 2023 Financial Results
Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), a global B2B content-driven iGaming technology provider, has announced its financial results for the third quarter ended September 30, 2023. The company reported an 8.0% year-over-year increase in revenue to €22.6 million (USD $24.0 million). Gross profit rose by 13.5% to €11.9 million (USD $12.6 million), with a gross profit margin of 52.5%. Adjusted EBITDA grew significantly by 70.5% to €3.8 million (USD $4.0 million), resulting in an Adjusted EBITDA margin of 16.9%. Bragg Gaming Group also reiterated its revenue and Adjusted EBITDA growth targets for the full year of 2023.
Financial and Operational Highlights
The company's revenue for Q3 2023 reached €22.6 million (USD $24.0 million), representing an 8.0% increase compared to the same period last year. Gross profit increased by 13.5% to €11.9 million (USD $12.6 million), with a gross profit margin of 52.5%. Adjusted EBITDA saw significant growth, reaching €3.8 million (USD $4.0 million), a 70.5% increase compared to Q3 2022. Wagering revenue generated by customers increased by 24.6% to €5.7 billion (USD $6.0 billion).
CEO Commentary and Future Outlook
Matevž Mazij, Chief Executive Officer of Bragg Gaming Group, highlighted the company's initiatives to position itself as a leading content-driven iGaming B2B provider, which contributed to the growth in revenue, gross profit, and Adjusted EBITDA. Mazij emphasized the revenue mix shift to higher-margin products, including proprietary and exclusive third-party content, as well as turn-key Player Account Management (PAM) and managed services partnerships. The company expects further growth in top-line, gross profit, and Adjusted EBITDA through the introduction of more higher-margin proprietary and exclusive third-party games to new partners.
Full-Year 2023 Guidance
Bragg Gaming Group reiterated its guidance for the full year of 2023, with a revenue range of €95-97 million (USD $100.7-102.8 million) and an Adjusted EBITDA range of €15.5-16.5 million (USD $16.4-17.5 million).
In conclusion, Bragg Gaming Group's Q3 2023 financial results demonstrate strong growth in revenue, gross profit, and Adjusted EBITDA. The company's focus on higher-margin products and strategic partnerships positions it for continued success and growth in the iGaming industry.
Hot Take: Bragg Gaming Group's Q3 2023 Financial Results and Its Impact on New Businesses
Bragg Gaming Group's Q3 2023 financial results are a testament to the potential of the iGaming industry. The company's 8.0% year-over-year increase in revenue, 13.5% rise in gross profit, and a whopping 70.5% surge in Adjusted EBITDA signal a thriving market. For new businesses looking to enter the iGaming sector, these figures provide a promising outlook.
Key Takeaways for New Businesses
Bragg's success can be attributed to its strategic focus on higher-margin products and strategic partnerships. This strategy not only boosted their revenue but also increased their gross profit margin to 52.5%. For new businesses, this underlines the importance of product differentiation and strategic alliances in achieving profitability.
Bragg's CEO, Matevž Mazij, expects further growth through the introduction of more higher-margin proprietary and exclusive third-party games to new partners. This suggests that innovation and partnerships will continue to be key drivers of growth in the iGaming industry.
In conclusion, Bragg Gaming Group's financial success offers valuable insights for new businesses. It emphasizes the importance of strategic partnerships, product differentiation, and innovation in driving growth and profitability in the iGaming industry.