Bragg Gaming has some laurels to share from the second quarter of this year as far as its earnings go. True to form for seemingly the only mention of laurels in the current vernacular, the company is not exhibiting any somnolence upon them.
Bragg reported an annual increase of nearly 19% in its Q2 2023 revenue and raised its guidance for the rest of the year. Its US operations with real-money online casino partners are part of that success and what Bragg is banking on to build on those results.
Bragg shares second quarter results
It’s difficult to find much fault in the second quarter of this year for Bragg. Among the highlights of the period for the company are an 18.9% uptick in global revenues. Those amounted to €24.7 million (about $27.1 million).
Bragg’s net income improved by €300,000 to reach €400,000 for the period. In the second quarter of 2022, that figure was €100,000. As a result, Bragg raised its full-year 2023 revenue guidance to land between 95 and 97 million Euros.
Zacks Equity Research lauded the quarter for Bragg, stating that the earnings per share of $0.02 doubled the estimates. Second-quarter revenue also surpassed the estimates by almost 4%.
The midpoint of Bragg’s updated revenue guidance range would equate to an increase of over 13% compared to 2022 should the company get there. While all of Bragg’s global operations will play a part in that revenue again this year, its business in the US is more than pulling its weight.
US markets contribute to Bragg’s growth
Bragg produces content like online slots for online casino licensees in multiple US markets. During the second quarter, Bragg’s content first became available in Pennsylvania via a deal with Rush Street Interactive.
Bragg also expanded upon its New Jersey presence during the quarter by distributing its games with WynnBet. According to Bragg’s investor presentation for the quarter, Bragg has active deals with at least 71% of licensees in Connecticut, Michigan, New Jersey, and Pennsylvania.
The presentation also bears out Bragg’s strategy for gleaning further revenue from those partnerships. Bragg says it is seeking to enable further crossover of popular slot titles at brick-and-mortar casinos by producing and distributing online versions of the games.
There is still some room for Bragg to grow in its existing US markets as Bragg creates what CEO Yaniv Sherman described in a Business Wire press release as “transforming Bragg into a must-have content supplier for leading global iGaming operators.”
However, a greater acceleration of the value of its interests will rely on some external matters.
Possible online casino expansion opportunities for Bragg Gaming
At least one new US market will make legal online casino games available to players in 2024. That is Rhode Island. The sole licensee there, Bally’s, has already made a content deal with Stakelogic for live dealer games.
Bragg snagging a deal with Bally’s to distribute content on its platform there remains a mere possibility. The new year could bring other possibilities for Bragg outside of Rhode Island. Other state governments expected to weigh legalizing online casino play to a serious extent include Indiana and New York.
While Iowa remains a possibility as well, proponents there are not as optimistic about 2024. For Bragg, though, any such legalizations would mean expansion opportunities, translating to more revenue.
The company already has something to brag about. 2024 could bring even more reason to boast.
