Bragg Gaming Group, a leading B2B gaming technology provider, has announced a reduction in its full-year revenue and adjusted EBITDA guidance following the report of a net loss during the third quarter of the year. Despite a year-on-year increase of 8.0% in revenue to €22.6m in the three months ending September 30, Bragg experienced higher costs that led to a net loss for the quarter. However, the company’s CEO Matevž Mazij expressed optimism about the third quarter, highlighting new and extended partnerships as evidence of the company’s long-term growth plans.
During the third quarter, Bragg made significant progress in its global expansion efforts by launching content with FanDuel in Michigan and Connecticut, signing a global distribution deal with 888, and securing content partnerships with PokerStars, Unibet, and Bet365. Mazij emphasized the company’s expectation for further acceleration of global market penetration and the introduction of new proprietary and exclusive third-party games.
However, despite the growth in revenue, Bragg incurred higher expenses in the third quarter, with a pre-tax loss of €2.6m, wider than the loss reported in the previous year. The net loss for the quarter amounted to €3.6m, compared to a profit in the previous year. The company’s adjusted EBITDA, however, was 72.7% higher year-on-year at €3.8m for the third quarter.
For the year-to-date period ending September 30, Bragg reported an 18.1% increase in revenue to €37.9m. However, expenses were also higher in several areas, resulting in a net loss of €4.8m compared to €4.4m in the previous year. Despite the increase in net loss, the adjusted EBITDA for the year-to-date period was higher, reaching €12.5m, a 48.8% increase from the previous year.
Despite the reduced revenue, Bragg has reiterated its guidance for the full year, with revenue expected to be within the range of €95.0m to €97.0m and adjusted EBITDA projected to hit between €15.5m and €16.5m. Looking ahead, Mazij remains positive about revenue growth and the long-term potential for Bragg, citing a revenue mix shift to higher-margin products as a contributing factor. He emphasized the company’s goal of introducing more higher-margin proprietary and exclusive third-party games to generate further top-line, gross profit, and adjusted EBITDA growth.