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iGaming technology provider Bragg Gaming has published its fourth quarter and full-year 2023 financial results, showcasing growth in multiple areas and highlighting that the company has had a good run for the last quarter and the preceding year.
The fourth quarter ended December 31, 2023, and the company generated $25.2 million in revenue, which was a slight decrease of 1.4% from the Q422 figure, which stood at $25.5 million. When compared with Bragg Gaming’s 2023 third quarter, it saw a slight increase, as the figure for that quarter stood at $24 million.
Wagering revenue represented a sum of $6.6 billion, which saw a slight growth from the third quarter, sitting at $6 billion. The fourth quarter of 2022 had more gaps in wagering revenue, reaching $5.5 billion.
Bragg Gaming’s gross profit also experienced an almost insignificant increase from the third quarter, as the Q4 2023 figure stood at $12.9 million while the Q3 2023 figure stood at $12.6 million. However, a decrease of 7.3% was experienced when compared to the same quarter of the preceding year (Q42022) at $14 million.
The company also announced that it has established a committee tasked with exploring strategic avenues for the company that involve potential sales of the group or its assets, mergers, financing endeavors, additional acquisitions, and various other pathways. In its news release, Bragg said that “no timetable to complete the strategic review process has been established, nor have any decisions been made relating to strategic alternatives at this time. There can be no assurances that any transaction will be completed.”
Adjusted EBITDA declines 23.7% in Q4 2023
Adjusted EBITDA saw a notable decline of 23.7%, falling to $3 million from the previous $4 million in the fourth quarter of 2022, as adjusted EBITDA margins contracted by 350 basis points to 11.9% from 15.4%. This downturn was primarily due to a decrease in gross profit, which was partially offset by improvements in cost optimization strategies.
Conversely, the figures for the third quarter of 2023 mirrored those of the fourth quarter of 2022, remaining steady at $4 million.
Meanwhile, operational loss for the period amounted to $400,000, marking a decrease of $600,000 million compared to the same period in the preceding year. This decline was mainly driven by a reduction in gross profit, albeit mitigated by decreased sales and administrative expenses.
Bragg Gaming’s 2023 full-year financial report
For the 12 months of 2023, Bragg Gaming (NASDAQ: BRAG) amassed $100.5 million, which was a 10.4% upswing when compared with the year 2022, when the figure stood at $91.1 million.
Wagering revenues, stemming from customer activity totaling $24.1 billion, saw a rise from $19 billion in the preceding year. There was also a notable uptick in gross profit, which surged by 10.8% to $53.7 million from $48.5 million in 2022, resulting in a gross profit margin of 53.4%.
Adjusted EBITDA closed at $16.3 million, marking a significant 26.3% increase compared to $13 million in 2022. This translated to an adjusted EBITDA margin of 16.3%, up from 14.2% in 2022.
In a Bragg Gaming press release, Chief Executive Officer Matevž Mazij further gave a summary of the full-year report:
“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%. 2023 revenue rose 10.4% to EUR 93.5 million (USD 100.5 million), gross profit increased by 10.8% to EUR 49.9 million (USD 53.7 million), and adjusted EBITDA increased by more than 26% to EUR 15.2 million (USD 16.3 million).
“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,” Mazji added.
Highlights of significant operations carried out in FY2023
- Bragg Gaming extended its influence into recently licensed areas, including Mexico with Caliente, Belgium with Napoleon Sportsbook and Casino, and Italy with Microgame.
- It signed several prominent content distribution deals with renowned Tier 1 partners, including PokerStars, 888/William Hill, and Betsson.
- The release of exclusive and proprietary games has proceeded, with a substantial uptake by some new US online casino operators as well as overseas markets including Spain, the UK, and Switzerland.
- Last year, Bragg launched 29 exclusive online titles globally. Among them, 15 were released into the expanding North American market, while 26 titles debuted in the European online casino market.
- The introduction of proprietary content, aggregation, and FuzeTM player engagement with Superbet in Brazil are among the highlights of the fourth quarter.
- The launch of new content with BetMGM in New Jersey and the announcement of a PAM extension encompassing content and product delivery with BetCity.nl.
