iGaming technology provider Bragg Gaming recently published its financial report for the third quarter, which ended on Sept. 30, 2023.
Highlights from reports showed the company amassed $24.0 million in revenue, leading to an 8% increase from the year 2022.
Bragg Gaming sees robust growth in Q3
In the third quarter of 2023, there was an 8% increase in revenue, reaching $24.0 million, as opposed to 2022’s Q3 figure of $22.2 million. However, this quarter’s growth did not measure up to Bragg Gaming’s Q2 2023, which amassed close to 19% revenue growth resulting in $27.2 million.
Wagering revenue for Q3 accrued by customers also experienced a growth of 24.6%, reaching $6.0 billion compared to $4.9 billion in the third quarter of 2022.
The gross profit demonstrated a commendable 13.5% increase, reaching $12.6 million from its previous standing of $11.0 million in 3Q22. This enhancement translated to a gross profit margin of 52.5%.
Adjusted EBITDA for the quarter was $4.0 million, marking a substantial increase of 70.5% compared to $2.3 million reported in Q322. The Adjusted EBITDA margin also witnessed growth, reaching 16.9% as opposed to the previous 10.7% in Q322.
These financial indicators collectively reflect a period of robust growth and profitability for the business. In a Bragg Gaming news release, Matevž Mazij, chief executive officer, said:
“These results reflect, in part, a revenue mix shift to higher-margin products including in-house created proprietary content, exclusive third-party content, and turn-key Player Account Management (“PAM”) and managed services partnerships, alongside our ongoing cost control actions.”
Net working capital stood at $6.7M, slight decrease in cash flow
For the period spanning Jan. 1, 2023, to Sept. 30, 2023, the cumulative cash flow generated from operational activities amounted to $6.6 million. This figure represents a decrease of $1.6 million compared to the corresponding nine-month period in 2022, primarily attributable to shifts in working capital during the initial nine months of 2023.
As of Sept. 30, 2023, the balance of cash and cash equivalents stood at $8.4 million. Additionally, the net working capital, excluding deferred consideration and convertible debt, was registered at $6.7 million.
Mazij commented: “Our strategic initiatives have helped position Bragg as a must-have content supplier for leading global iGaming operators, further building our foundation from which we can deliver consistent profitable growth.”
Bragg’s future outlook includes releasing more games
During the third quarter, Bragg Gaming expanded its reach across the United States and beyond. It introduced new content in New Jersey through a partnership with BetMGM.
It also delivered online casino content to Pennsylvania and Michigan and pledged to sustain this momentum by continuing its expansion and distribution efforts throughout 2024. Mazij concluded:
“The global availability of our proprietary and exclusive third-party content is accelerating, particularly with a growing number of Tier 1 operators, and we expect our global market penetration for these games to accelerate further in the fourth quarter and throughout 2024.
During the quarter we launched 12 new proprietary and exclusive third-party games in the largest four regulated online casino markets in the United States and we expect to continue to release games at this cadence or higher over the next 12 months.
As we continue to introduce more higher-margin proprietary and exclusive third-party games to more new partners at a faster pace, we expect to generate further top-line, gross profit and Adjusted EBITDA growth as well as higher operating margins.”
In other news, the company is set to experience leadership transitions, with Lara Falzon, the president and chief operating officer, revealing her decision to resign from her role, effective Dec. 31, 2023.