Q3 2023: Bragg declares net loss despite rises in revenue and EBITDA
Adjusted EBITDA for the quarter came in at €3.8m, up 70.5% from €2.2m, at an adjusted EBITDA margin of 16.9%, up significantly from 10.7%.
Still, after accounting for its remaining expenses including taxes and foreign currency translations, the business declared a comprehensive net loss of €3.6m, compared to a comprehensive net income of €213,000 in Q3 2022.
Those figures brought the firm’s total comprehensive net loss for the first nine months of 2023 to €4.8m, compared to €4.4m in the first nine months of 2022.
During Q3, Bragg signed and extended a number of different supply agreements around the globe.
It launched its content and RGS technology in Michigan and Connecticut with FanDuel, for example, and secured a global distribution agreement with 888 Holdings to launch its content across the operator’s brands, including William Hill, 888, Mr Green and SI Sportsbook.Bragg also secured a content distribution agreement with Flutter Entertainment-owned PokerStars in several European jurisdictions including the UK, Italy, Portugal, Spain, Denmark and Sweden, as well as in New Jersey, Michigan and Pennsylvania in the US.
Further, the supplier launched its products with Kindred Group’s Unibet in the UK, with bet365 in Ontario, and with Lottomatica Group in Italy.
It also extended its agreement with Entain to supply its Dutch BetCity.nl brand with its PAM platform until 2025.
During the quarter, the business appointed its largest shareholder and former chairman Matevž Mazij as its chief executive, as he replaced Yaniv Sherman in the position.
Elsewhere, the business said it had repaid a total of $2.5m to the Lind Global Fund II since July, in lieu of converting a previously agreed convertible debt into common shares, therefore avoiding any further share dilution.
Its outstanding debt with the fund currently stands at $4.5m, which Bragg intends to further reduce using its cash flow from operations.
The company reiterated its full-year 2023 revenue guidance range of between €95m and €97m, and expects to generate adjusted EBITDA of €15.5m-€16.5m.