Bragg Gaming Group has revised its financial forecasts for the full year, after reporting a net loss during the third quarter of the year.
The company reported an 8.0% year-on-year increase in revenue to €22.6m in the three months to 30 September. Bragg attributed this growth to a switch to higher-margin products, including in-house proprietary content.
During the third quarter, the company also made significant changes to its leadership, with Matevž Mazij joining as its new CEO in August. Despite the net loss during this period, CEO Mazij remains positive about Q3, pointing to the launch of new partnerships as evidence of the company’s long-term growth plans.
Notable highlights of Q3 include the launch of content with FanDuel in Michigan and Connecticut, as well as a global distribution deal with 888. Bragg also signed a content partnership with PokerStars and launched new games with Unibet in the UK and Bet365 in Ontario.
Mazij expressed optimism about the future, stating, “We expect our global market penetration for these games to accelerate further in Q4 and throughout 2024.”
However, despite the increase in revenue, Bragg also reported higher expenses in Q3. This led to a pre-tax loss of $2.6m for the quarter, wider than the loss posted last year.
Looking at the nine-month period to 30 September, Bragg reported an 18.1% increase in revenue. However, expenses were also higher across several areas, leading to a net loss of $4.8m for the year-to-date period.
Given these financial results, the company has revised its full-year guidance, expecting revenue to be between €95.0m and €97.0m, down from its previous guidance of €100.7m to €102.8m. Adjusted EBITDA is now forecasted to hit between €15.5m and €16.5m, compared to an earlier estimate of €16.4m to €17.5m.
CEO Mazij remains optimistic about the company’s future, citing the introduction of higher-margin proprietary and exclusive third-party games as a catalyst for further growth. He stated, “As we continue to introduce more higher-margin proprietary and exclusive third-party games to more new partners at a faster pace, we expect to generate further top-line, gross profit and adjusted EBITDA growth as well as higher operating margins.”