Bragg Gaming Reports Solid Q2 Revenue, Continuing Success from Q1
Posted on: August 9, 2022, 10:57h.
Last updated on: August 9, 2022, 01:14h.
B2B gaming technology company Bragg Gaming is having a good year. It reported a strong first quarter, and following the release of its latest financial health report, saw another significant improvement in the second quarter.
Gross profit for the company increased by 65.5% in the quarter, reaching $11.9 million. Its gross profit margin also jumped, gaining 1,060 base points from Q2 last year. Compared to Q1, it’s also a 55.9% increase.
In Q2 of last year, its revenue was $15.84 million, but jumped to $21.25 million in the most recent quarter. That marks a 34.2% year-on-year change.
The improvement comes from introducing new proprietary games and market expansion in Europe and North America. As a result, for the second time this year, it has raised its full-year guidance for 2022.
The 2021 Rebound
Bragg’s wagering revenue also saw a huge jump. For the period last year, it recorded revenue of $3.88 billion. Now, however, this increased to $4.29 billion.
Net income improved as well, but still needs a boost. A reduction in the cost of sales activity allowed Bragg to record a positive income of $100,000. A year ago, it took a $2.4-million hit.
At the end of the most recent quarter, the company was holding cash and cash equivalents at $11.3 million. This considers the $9.2 million it spent on acquiring Spin Games. Bragg announced that purchase a year ago and finalized it during Q2 of this year.
New content is on its way that should continue to solidify the company’s position in the market. Bragg has stated that it will introduce around 22 proprietary games this year, 120% more than last year.
In addition to the proprietary content, Bragg has in place several agreements for exclusive distribution of games from third-party studios. It asserts this will lead to a “higher level of desirable real estate allocation” on several iGaming platforms.
The North American market will remain a focal point of the company’s operations. Bragg expects to dedicate several resources to the market as it continues to expand, leveraging its position in both the online and land-based gaming sectors.
Sherman Enters at the Right Time
Now leading Bragg, only since June, is Yaniv Sherman, a former 888 Holdings executive and its head of US operations. With him at the helm, the company expects to continue to strengthen its position. It’s already on track, raising its 2022 full-year outlook considerably.
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,” said Sherman.
Before the latest results, Bragg anticipated revenue of between $70 million and $74 million for the year. However, it pushed the guidance to $78 million to $82 million. It raised its adjusted EBITDA (earnings before interest, tax, depreciation and amortization), as well. This went from $9.7 millioi to $10.7 million to $10 million to $11 million.
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