Bragg Gaming Group is evaluating strategic alternatives for the business, including a sale, as it reported a 10.4 per cent increase in full-year revenue to €93.5m in 2023.
Wagering revenue generated by customers of €22.4bn rose from the €17.7bn raised throughout 2022. Gross profit increased by 10.8 per cent to €49.9m, up from €45.1m in 2022, translating to a gross profit margin of 53.4 per cent.
Bragg also revealed that adjusted EBITDA for FY23 was up by 26.3 per cent to €15.2m, representing an adjusted EBITDA margin of 16.3 per cent.
Although, the full-year revenue was impacted by a Q4 decline of 1.4 per cent to €23.4m, reflecting the “revised commercial terms agreed with a key strategic partner that took effect during the quarter,” Bragg said.
Gross profit decreased by 7.3 per cent to €12m, while adjusted EBITDA decreased by 23.7 per cent to €2.8m.
Bragg CEO Matevž Mazij said the company’s full-year achievements were in part fuelled by “a reconfiguration of our revenue mix, favouring higher-margin products like internally developed proprietary content, and our comprehensive Player Account Management platform, all while maintaining stringent cost control measures.”
But while Mazij said Bragg is experiencing growth in the Czech market, the challenges in the Dutch market – brought about by “increased competition and new regulations since July”- are “expected to persist.”
Mazij said Bragg expects a “further surge” in the global distribution and adoption of its proprietary and exclusive third-party content.
“Last year, we successfully launched a total of 29 new proprietary online titles worldwide, including 26 proprietary titles newly introduced to the European online casino markets and 15 proprietary titles newly introduced to the North American online casino markets. We expect to maintain or exceed this pace of game releases this year.”
Bragg has forecast revenue to rise by between 9.1 per cent and 16.6 per cent in 2024 to a range of €102m and €109m.
The company says adjusted EBITDA for the year is expected to be between €15.2m and €18.5m, increasing by up to 21.7 per cent.
Bragg also confirmed it has appointed an ad-hoc special committee, chaired by independent board member Don Robertson, to “undertake a review of the company’s strategic alternatives.”
“The special committee has been appointed to consider and explore strategic alternatives, which may include the sale of the company or of its assets, a merger, financing, further acquisitions or other strategic alternatives,” it said.
“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.”
