Bragg receiving “increased interest” as strategic review continues
CEO Matevž Mazij provides an update into the process as special committee enlists the services of Oakvale Capital and Toronto law firm
The special committee reviewing strategic alternatives for Bragg Gaming Group has been “encouraged by the progress made to date”, according to the company’s CEO.
Matevž Mazij has confirmed the committee, which is being chaired by independent board member Don Robertson, is continuing to make progress after being established in March.
The CEO also revealed that the firm had enlisted Oakvale Capital and Toronto-based law firm Blake, Cassels and Graydon to support the process.
The review could end in one of several options as detailed by Bragg in March, including a sale, merger, acquisition or further investment into the supplier.
Speaking on an analyst call following the publication of the group’s Q1 results, Mazij provided a brief update on the process.
He said: “The special committee was set up against the backdrop of recent market activity, which included plenty of igaming M&A and the recently priced Games Global IPO, and we have seen corresponding increased interest in Bragg.
“Possible strategic alternatives may include a sale, merger, acquisition or additional investment. While no assurances can be made that any transaction will be completed as a result of this process, management has been informed by the special committee that the process is going well.”
He added: “As we’ve previously indicated, the board does not plan to provide any further updates on the process until it had material development to report on. In the meantime, management continues to focus on business growth and delivering on its strategic initiatives.”
Alongside providing an update on the strategic review, bosses confirmed a 4.2% year-on-year (YoY) rise in Q1 revenue to €23.8m, up from the €22.9m reported in Q1 2023.
However, adjusted EBITDA dipped 12.4% to €3.4m while adjusted EBITDA margin suffered a fall of 270 basis points to 14.3%.
Gross profit fell 2.8% to €11.9m as operational loss for the first three months sat at €1.3m.
The group also secured a €6.5m investment through a promissory note that management said would enhance balance sheet flexibility.
As a result of the performance during Q1, Bragg has reiterated its full-year 2024 revenue guidance of between €102m and €109m, as well as its EBITDA range of €15.2m to €18.5m.
Mazij said: “Although gross profit and adjusted EBITDA saw modest decreases in the first quarter stemming from the extension and renegotiation of our agreement with Entain to provide our PAM platform to BetCity through 2025, we maintain a strong belief in our ability to achieve long-term growth and profitability.
“Our proprietary and exclusive third-party content continues to gain ground with an increasing number of top-tier operators globally, and we introduced a total of 19 new exclusive titles worldwide in the first quarter of 2024.”