Bragg Gaming Group reported a record €20.9m (£18.2m/$20.7m) in revenue for the third quarter of the year, shooting up by 62.0% year-on-year.
Bragg had undergone a number of changes during the quarter. In September, the company consolidated all its businesses under one single brand. Also in September Bragg secured $8.7m in funding from investment entity operator Lind Global and facilitated Kalamba’s entry into Ontario through a partnership.
In July, Bragg appointed Mark Clayton to its board of directors.
Yaniv Sherman, chief executive officer for Bragg, said that the quarter had been successful for Bragg.
“In the third quarter of 2022, we generated third quarter records for revenue of €20.9m, gross profit of €10.4m, gross profit margin of 50.0%, and adjusted EBITDA of €2.2m,” said Sherman. “Our operating momentum has been consistent throughout the year as for the first nine months of 2022 revenue, gross profit and adjusted EBITDA have improved significantly, compared to the same period in 2021.”
Looking towards the future, Sherman said that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) – which came to €2.2m – and revenue were both set to grow.
“Our positive Adjusted EBITDA, combined with capital we raised in the third quarter positions us to continue to invest to drive further growth,” he continued.
“Looking ahead, we expect our consistent execution against our strategy and growth initiatives will drive further revenue and adjusted EBITDA growth in 2023.”
Unadjusted EBITDA came to €837,000 during the three months.
The cost of revenue for the quarter was €10.4m, a rise of 66.9%, bringing gross profit to €10.4m. This was still a rise of 58.0% year-on-year.
Selling, general and administrative expenses also grew, from €8.8m in Q3 2021 to €12.0m.
This meant the business made an operating loss of €1.6m, an improvement of €579,000 year-on-year. Net interest expense was €246,000, bringing the pre-tax loss to €1.8m.
After an income tax benefit of €114,000, the net loss for the period came to €1.9m – up by €479,000.
For the nine months to date revenue is up by 43.4% to €61.0m. Cost of revenue is €28.9m, bringing the gross profit so far to €32.0m.
The operating loss for the period stands at €990,000, and the loss before income taxes is €1.5m. In total, the net loss for the nine months is €2.6m, down by €3.2m.