Bragg Gaming hails 34% Q2 2022 revenue growth as B2B wagering revenue swells

Bragg Gaming has reported a 34.2% year-on-year (YoY) revenue growth spike during Q2 2022 to €20.8m ($21.3m).

Delivering its financial results for the period, the Nasdaq-listed supplier revealed adjusted EBITDA of €3.1m, increasing by 63% from Q2 2021 (€1.9m) with margin increasing by 260 basis points to 14.9%.

Gross profit rose 65.5% YoY to €11.6m from a previous year high of €7m, advancing by more than 1,000 basis points.

“The margin expansion is primarily the result of the continued shift towards a higher proportion of revenues from igaming and turnkey services, which have lower associated cost of sales when compared to games and content,” Bragg said in its financial results.

“The higher mix of igaming revenues includes an increase in revenues from proprietary games which have no cost of sales,” the firm added.

Net income grew from a net loss of €2.3m during Q2 2021 to a net income positive figure of €100,000 in Q2 2022, a reversal which Bragg suggested was due in part to higher gross profits and reduced fees and costs in areas including personnel, sales and marketing.

Bragg has confirmed available cash and cash equivalents of €11m, reflective of the €9m paid during Q2 to acquire the Spin Games business.

The firm has also revealed its B2B sportsbook business clients generated wagering revenue of €4.2bn during Q2, up 10% YoY, an increase Bragg suggested was due to changes in product mix towards player account management (PAM) managed services and proprietary content.

Bragg Gaming CEO Yaniv Sherman, who was appointed by the firm in June, highlighted the strong Q2 results, noting the “significant” improvements in revenue, gross profit margin and adjusted EBITDA.

“Our operating momentum highlights our continued success in serving a growing base of customers in an expanding number of regulated global igaming markets, with turnkey igaming solutions that power their businesses, including proprietary and exclusive third-party content,” Sherman explained.

“Following the completion in June of our acquisition of Spin Games, Bragg possesses the product development capabilities, industry expertise and licensed footprint across Europe and North America to achieve further and consistent progress on our content and market expansion growth initiatives.

“We expect our execution against our content development and distribution strategy will result in a higher level of desirable real estate allocation on leading igaming operators’ sites, leading to higher player engagement that drives further top-line growth and margin improvement,” Sherman added.

Continuing his remarks, Sherman referenced Bragg’s four in-house game studios, suggesting the firm would up its game production output by 120% from 2021, releasing 22 proprietary games in 2022.

In addition, he confirmed that Bragg would supplement internally developed games with exclusive distribution agreements from “established popular” third-party studios.