Bragg Gaming Group creates special strategy committee to review possible sale of company

Bragg Gaming Group has announced the formation of an ad hoc special committee to review the company’s strategic alternatives and explore the possibility of selling the company.

As part of its Q4 and FY 2023 financial results announcement, the supplier revealed that the committee will be chaired by independent board member Don Robertson and consider the sale of the company or its assets, as well as a merger, financing or further acquisitions.

Bragg Gaming Group added that there is no timetable for when the strategic review must be completed by, nor can there be any assurances any transactions will be completed.

A statement read: “The company will not be providing further comment on the status of the strategic review process at this time and intends to provide further updates as circumstances warrant and in accordance with applicable securities laws.

“While the strategic review process is ongoing, the company’s management remains committed to executing the company’s strategy and business plan with the full support of the board.”

Financially, Q4 2023 revenue stood at €23.4m, a 1.4% year-on-year (YOY) decrease due to revised commercial terms agreed with a key strategic partner during that period.

Gross profit also fell by 7.3% to €12m from €13m, while gross profit margin dropped to 51.5% from 54.9%.

The technology provider reported adjusted EBITDA of €2.8m, down 23.7% YOY from €3.7m in Q4 2022. However, wagering revenue jumped 18.1% YOY to €6.1bn.

Q4 highlights included the rollout of new content with BetMGM in New Jersey as well as “aggregation and Fuze player engagement with Superbet in Brazil.”

There were also content launches in numerous regulated markets such as Belgium, Italy, and Mexico.

Commenting on the results, Bragg CEO Matevž Mazij focused on the firm’s full-year growth which saw not only revenue and gross profit increase by double digits, 10.4% and 10.8% YOY to €93.5m and €49.9m, respectively, but also wagering revenue rose 26.6% YOY to €22.4bn.

Mazij said: “Through Bragg’s strategic efforts to establish the business as a premier content-focused igaming B2B provider and our meticulous control over expenses, we achieved growth in revenue, gross profit, and adjusted EBITDA in 2023, along with a 210bps improvement in adjusted EBITDA margin to 16.3%.

“These achievements are attributed, in part, to a reconfiguration of our revenue mix, favoring higher-margin products like internally developed proprietary content, and our comprehensive Player Account Management platform, all while maintaining stringent cost-control measures.”

For FY 2024 revenue and adjusted EBITDA guidance, Bragg expects revenue to rise 9.1%-16.6% to a range of €102m-€109m while adjusted EBITDA is projected to rise 21.7% to land between €15.2m and €18.5m.