Bragg Gaming Group (TSX: BRAG, NASDAQ: BRAG) is a leading betting company which delivered solid growth over the last few years. The company has a 60% CAGR (2019-2021) and owns 140% of customers in licensed jurisdictions in North America, Europe, and Latin America. Bragg often shares updates about new partnerships or content, augmenting the company’s revenue and total addressable market.

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Company Overview

Bragg Gaming Group (TSX: BRAG, NASDAQ: BRAG) is a fast-growing online gaming and content technology supplier. The company offers a state-of-the-art player account management (PAM) platform with payments, compliance and CRM functionality, licensing and certification, a deep portfolio of iGaming content and sportsbook options, advanced promotional and data tools, and fully-managed operations and marketing services. The company has worldwide operations emphasizing the Dutch and American markets. Bragg’s extensive content portfolio serves online and land-based casino brands. First, the company offers exclusive online gaming content from its in-house game development studios, which include Wild Streak Gaming, Oryx Gaming, and Atomic Slot Lab. Second, Bragg Gaming has a range of exclusive games built on our remote game server (RGS) from partner studios. Together, these two sources make up its whole online content portfolio: a diverse, localized, and in-demand catalog of games that are only available from us and differentiate our offering in the market. Third, Bragg aggregates thousands of online casino games from many of the best-known game studios, ensuring that casinos operating on its PAM and using our aggregation service get all the in-demand games from across the industry at the time of launch. Fourth, we are a significant supplier to the land-based casino sector through Wild Streak Gaming, with a range of partnerships and an intense game development roadmap.

Bragg’s customers also can choose from a range of sportsbook and lottery products to complement their iGaming offering. These products come from its in-house suite and our partnerships with some of the industry’s biggest suppliers. In addition to its complete player-facing product offering, its customers can grow their business with the help of our Fuze™ promotional toolset with engagement features such as free round bonuses, tournaments, and quests, all of which work across its entire range of casino and sportsbook products.

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Bragg runs operations in Michigan with BetMGM, furthering its North American expansion. BetMGM is a market-leading sports betting and entertainment company pioneering the online gaming industry. Based on a partnership between MGM Resorts International (NYSE: MGM) and Entain Plc (LSE: ENT), BetMGM has exclusive access to all of MGM’s U.S. land-based and online sports betting, major tournament poker, and online gaming businesses. The online casino market in Michigan is expected to generate a gross win of over U.S. $1.5B in 2022, while Eilers&Krejcik Gaming’s U.S. Online Casino Monitor reports that BetMGM is the leading iCasino operator in the state with a 38% market share in August 2022.

Also, thanks to its partnerships in the Netherlands, the company can claim up to 33% of the total addressable market in the country. Initial launches included local brands such as BetCity.nl, Jack’s Casino, Holland Casino, and Toto

Share Structure/ Financials

The company’s third-quarter revenues beat expectations while the EPS lagged. The gross profit rose by 58% to the top €10.4M, meaning the company reflected higher income and a 50% gross profit margin. Another exciting piece of information is Bragg’s EBITDA improved by 51.6% to €2.2M. Over the last quarter, the company generated €20.9M in revenue but still had a €2M loss, representing a €0.09 loss per share. The previous data improved YoY from its €0.12 loss in Q3 2021. The highest expenses are selling, general and administrative costs ($12M).

Bragg operates with a strong balance sheet. Owning €17,2M cash and cash equivalents in hand, Bragg can boast a sold $31M in total current assets and $109M in total assets.

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“Looking ahead, we expect our consistent execution against our strategy and growth initiatives will drive additional revenue and Adjusted EBITDA growth in 2023. Our expectation that we will continue to deliver top-line and Adjusted EBITDA growth in what is currently a highly dynamic and volatile environment is a testament to our team members ability to execute on our focused strategies, which positions us well to deliver near- and long-term shareholder value.”

Yaniv Sherman, Chief Executive Officer

As of September 30, the company generated 109M shares on the market. Regarding the stock price’s fluctuation, its 52-week low is $3.92, and its 52-week high is $10.10. The stock popped from its 52-week low (reached on November 29) thanks to the new partnership with Incredible Technologies.

Bottom Line

Bragg Gaming Group (TSX: BRAG, NASDAQ) witnesses a constant growth. Q3 2022 marks the ninth consecutive quarter of revenue growth, evolves in the regulated Dutch market, and is already live in Michigan with DL, RSI & Caesars/W.H. The company is on track to become one of the American market leaders, and the low valuation offers investors the opportunity to diversify their portfolio by adding this betting company.

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