Bragg breaks revenue record in Q2

| By Marese O'Hagan
Gaming software supplier Bragg reported a 34.2% rise in revenue to €20.8m (£17.5m/$20.2m) during Q2 2022, a new quarterly record.
Bragg revenue

Besides revenue, it also reported new quarterly records in gross profit, gross profit margin and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).

Yaniv Sherman, chief executive officer for Bragg, said that the growth was due to expansion during the quarter.

“Our operating momentum highlights our continued success in serving a growing base of customers in an expanding number of regulated global igaming markets,” said Sherman.

He also said Bragg had gained significant reach during the quarter, due to its $30m acquisition of Spin Games which closed in June.

“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,” he continued.

Cost of revenue was €9.1m, up by 8.2% compared to Q2 2021. This brought the gross profit to a record-breaking €11.6m for the quarter, up by 65.5% year-on-year.

Selling, general and administrative expenses totaled at €11.3m. After also accounting for a gain related to deferred payments as part of the Spin deal, the total operating income was €752,000, after a €1.7m loss a year earlier.

After interest and taxes, net income was €90,000, a significant improvement compared to the loss of €2.3m recorded in the previous Q2.

Adjusted EBITDA for the quarter was €3.1m, up by 62.9% year-on-year. Cash flow from operating activities in the quarter came to €3.7m.

For the first six months of the year, revenue hit €40.2m, up by 35.2% from H1 2021. Gross profit was €21.6m, a rise of 51.3%.

Operating income for the six months totaled at €524,000.

Following interest on expenses and income tax, the net income for the six months totaled at a loss of €630,000.

Adjusted EBITDA for the first half came to €6.1m.

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