Bragg ups guidance for 2022 after 9.9% revenue rise in Q3 of 2021

| By Marese O'Hagan
Bragg Gaming Group has reported revenue of €12.8m (£11.0m/$15.2m) in its third quarter 2021 results, covering the period ended 30 September.

This was a rise of 9.9% year-on-year, compared to revenue of €11.7m in Q3 2020.

Operators based in Malta made up €6.1m of this total, down 19.2% while Curaçao operators brought in a further €4.4m, more than double 2020’s total.

The total cost of revenue came to €6.2m – mostly due to costs paid for third-party content – down slightly by 5.5% compared to the same period in 2020.

Further selling, general and administrative costs generated €8.9m in expenses, more than double €4.2m recorded in Q3 2020.

After considering the addition of the $36,000 in other costs, the total operating loss for the quarter totaled €2.2m, the same as the loss recorded in Q3 of the prior year.

Net interest expenses, at €40,000, and income taxes at €161,000 brought the total net loss for Q3 to €2.4m, €679,000 more than Q3 2020.

Wagering revenue came in at €3.2bn, a 4.8% rise from €3.0bn year-on-year.

The number of unique players rose, from 1.9 million in Q3 2020 to 2.1 million this quarter. This was an increase of 14.4%.

In light of the successful quarter, Bragg adjusted its 2022 revenue guidance to fall between €59m-€61m. This was up from the previously projected 2022 revenue of €54m-€56m, which was made public in August.

Richard Carter, CEO of Bragg Gaming, stated that the company’s total addressable market is also set to grow due to market expansion.

“Overall, our market expansion initiatives are expected to increase our total addressable market six-fold in 2022 to more than USD $18 billion.” said Carter.

He went on to explain the rise in numbers this quarter, further attributing the success to marketing and acquisitions.

“Bragg’s strong 2021 third quarter financial performance and our increased guidance reflects the contributions from our comprehensive growth initiatives, including the consistent progress we have achieved with new market diversification and our ability to offer more new high-performing propriety and exclusive third-party online content,” said Carter.

Over Q3 Bragg also expanded its reach through licences in the Netherlands and Greece.

In August, Bragg began to trade on the Nasdaq Stock Market, after securing approval.

Earlier today, Bragg confirmed a five-year content licencing agreement with casino gaming content provider Blueberi.

As part of the deal, Bluberi’s slot game portfolio will be adapted for online play. Bluberi’s content will also be distributed throughout Europe and North America.

Bluberi has over 100 titles, which have been developed for Class II, Class III and tribal lottery system facitators.

“Adapting popular land-based titles for distribution in the online space is an initiative we have already seen huge success with via the games developed by our Wild Streak studio,” said Carter.

“Bluberi’s slot content portfolio continues to grow in popularity with land-based players, and we are excited to now be able to add their titles to our rapidly growing omni-channel offering.”

Last week, Bragg announced the launch of its Oryx platform in the Czech Republic through betting operator Merkur.

The deal will see Oryx provide a range of products to Merkur, including its player account management and fraud detection platforms.

In turn, Merkur online customers will be able to play titles from Gamomat, Peter & Sons and Oryx’s original titles from the Oryx Hub.

“ORYX’s commitment to providing a market leading turnkey online gaming solution coupled with its market leading range of both in-house and third-party casino content and services match exactly what we’re looking for to take our brand online to Czech players,” said Stefan Burns, CEO at Merkur.

“It offers us the right blend of flexibility and differentiation that is going to serve us well as we continue to grow our leading presence there.”

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