Bragg Gaming Group, a global B2B gaming technology and content provider, on Wednesday reported financial results for the three-month period ending March 31.
The Toronto, Canada-based company said it set several records for performance during the first quarter of this year. It provided an update on its strategic growth initiatives and reiterated its full year 2022 revenue and adjusted EBITDA guidance.
During the first quarter of 2022, revenue was €19.4m (US$20.5m), an increase of 36.4% from €14.2m in Q1 2021.
Q1 2022 gross profit was €10.0m, up 50.7% from €6.6m during the same quarter one year earlier.
Adjusted EBITDA was €3.0m in the recently completed quarter, up 26.2% from the corresponding quarter in 2021.
According to Yaniv Spielberg, Chief Strategy Officer for Bragg Gaming, the marks for revenue, gross profit and adjusted EBITDA were the best in company history.
“Our momentum continued in the first quarter as the successful execution of our growth initiatives focused on offering more higher-margin proprietary and third-party exclusive games and our iGaming PAM, combined with ongoing expansion into new regulated iGaming markets, drove strong growth in our operating results,” Spielberg said in a statement.
Spielberg noted the company’s record financial results reflect, in part, growing revenue from higher gross margin in-house content and platform revenue, which he said together drove record quarterly gross profit margin of 51.8%, an 80 basis point improvement over its prior gross profit margin record, which was achieved in 4Q 2021.
“The record quarterly margin supports our confidence that we have the right operating plan in place to achieve our goal of growing gross profit margin to approximately 60% by 2024,” he said.
Spielberg said the management team is reiterating its guidance for 2022 full year revenue of €68m-72m and adjusted EBITDA of €9.5m-10.5m, but added, “given it is still very early in the year, we believe our continuing business momentum positions Bragg for the potential of another strong year of outperformance relative to this outlook.”
Bragg’s business model provides it with the flexibility to fund its “aggressive” new market expansion and proprietary game development growth initiatives through organic cash flow growth, which Spielberg said will “support our goal of delivering new near- and long-term shareholder value.”
