Posted on: August 9, 2022, 10:57 a.m.
Last update on: August 9, 2022, 11:39 a.m.
B2B gaming technology company Bragg Gaming is having a good year. It had a strong first quarter and, following the release of its latest financial health report, saw another significant improvement in the second quarter.
The company’s gross profit rose 65.5% in the quarter to $11.9 million. Its gross profit margin also jumped, gaining 1,060 basis points from the second quarter of last year. Compared to the first quarter, this is also an increase of 55.9%.
In the second quarter of last year, its revenue was $15.84 million, but jumped to $21.25 million in the last quarter. This represents a variation of 34.2% from one year to the next.
The improvement comes from the introduction of new proprietary games and market expansion in Europe and North America. As a result, for the second time this year, it has raised its forecast for the year 2022.
The rebound of 2021
Bragg’s betting revenue also saw a huge jump. For the period last year, it recorded revenues of $3.88 billion. Now, however, that amount has risen to $4.29 billion.
Net profit also improved, but still needs to be boosted. A reduction in the cost of sales activity allowed Bragg to record a positive income of $100,000. A year ago, it cost $2.4 million.
At the end of the last quarter, the company held cash and cash equivalents at $11.3 million. This takes into account the $9.2 million spent to acquire Spin Games. Bragg announced the purchase a year ago and completed it in the second quarter of this year.
New content is on the way which should continue to solidify the company’s position in the market. Bragg said it will introduce around 22 first-party games this year, 120% more than last year.
In addition to proprietary content, Bragg has several agreements in place to exclusively distribute games from third-party studios. He claims this will lead to a “higher level of desirable real estate allocation” across multiple iGaming platforms.
The North American market will remain at the center of the company’s activities. Bragg plans to devote several resources to the market as it expands, leveraging its position in the online and land-based gaming sectors.
Sherman enters at the right time
Now at the helm of 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 intends to continue to strengthen its position. He is already on the right track, significantly increasing his outlook for the year 2022.
The North American iGaming market continues to grow. We plan to leverage our expertise and differentiated product and technology advantages to drive continued growth with major operators in these markets. This includes localizing and personalizing content that addresses popular online and land-based themes,” said new Bragg Gaming CEO Yaniv Sherman.
Prior to the latest results, Bragg was forecasting revenue of between $70 million and $74 million for the year. However, that pushed the forecast to $78-82 million. It also increased its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). That went from $9.7-10.7 million to $10-11 million.