Prague Gaming Announces Record Annual and Fourth-Quarter Results

Prague Gaming declared outstanding annual and final-quarter financial outcomes – Finance – iGB

Prague Gaming revealed record income, gross profit, and modified EBITDA for both the entire year 2022 and the final quarter ending December 31.

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Prague Gaming declared outstanding annual and final-quarter financial outcomes
Prague’s final-quarter income was €23.7 million (£20.8 million/$25.5 million), up 50.3% year-over-year, while full-year income was €84.7 million, up 45.2%.

Prague CEO Yaniv Sherman stated the outcomes were “groundbreaking” and added that they showed Prague’s growth throughout the year.

“Prague had a groundbreaking year in 2022, with final-quarter income, gross profit, and modified EBITDA significantly surpassing our expectations compared to the final quarter of 2021,” Sherman stated.

“These record outcomes highlight Prague’s continued robust momentum as we continue to effectively transition our business from primarily serving the Central European iGaming market to a global, content-driven iGaming solutions provider with a broad footprint in North America and Europe.”

The year was eventful for Prague. In March 2022, the company received supplier licenses in Ontario and the Bahamas.

It formally completed the acquisition of $30.

Following authorization from the Keystone State, 0m obtained Spin Games in the sixth month of the year.

In the ninth month, the firm secured $8.7 million in funding from the Lind Global Fund. Additionally, in September, Bragg declared its intention to combine all its enterprises and operations under a single, unified brand.

**Yearly Performance**

The majority of Bragg’s income originated from its activities in the Netherlands. As the online gambling market in the Netherlands only commenced on October 1, 2021, revenue in 2022 was considerably higher than in 2021, experiencing a 533.7% surge to €36.8 million.

Curacao was the second most substantial source of revenue, generating €17.2 million, followed by Malta, which contributed €14.6 million. The remaining income stemmed from the United States, Croatia, Serbia, Romania, and other geographical areas.

The total cost of sales for the year reached €39.6 million, representing a 32.1% increase compared to 2021. This resulted in a gross profit of €45 million, signifying a 59.1% rise.

Sales, general, and administrative expenses also witnessed an increase, rising from €34.6 million to €46.7 million. The most significant expense was employee compensation, totaling €23.1 million. This was followed by depreciation and amortization costs, amounting to €8.4 million, and professional fees, which reached €3.4 million.

Other expenditures encompassed corporate, sales and marketing, and IT and hosting costs.

These expenditures, along with three revaluation gains, including derivative liabilities, receivables, and deferred compensation, amounted to €854,000, leading to an operational deficit of €828,000, considerably lower than the €6.3 million loss in 2021.

Net interest expenditure was €1 million, a rise from €340,000, bringing the pre-tax deficit to €1.9 million.

After €1.5 million in income taxes, the net loss for the year was €3.4 million, a decrease of 53.6% year-on-year.

Adjusted EBITDA for the year was €12.1 million, a growth of 64%.

Wagering revenue was €17.7 million, a rise of 24%.

Fourth Quarter Outcomes

The quarter witnessed a gross profit of €13 million, an increase of 61.1%. Bragg stated that this rise was due to a shift in product focus towards turnkey player account management (PAM) clients, managed services, and proprietary content. Bragg also stated that this resulted in a total adjusted EBITDA of €3.6 million for the year, a growth of 128.3%.

Wagering revenue generated in the fourth quarter was €5.1 million, an increase of 65.4% over the fourth quarter of 2021.

The quarter saw an operational profit of €162,000. This is higher than the €1.8 million operational loss generated in the fourth quarter of 2021.

The net loss for the quarter was €900,000, an improvement over the €2 million loss in the fourth quarter of 2021.

2023 Projection

As a result of these outcomes, Bragg has updated its full-year 2023 forecast to between €92 million and €97 million. If the midpoint of this range is attained, this would represent a 12% increase.

The firms modified earnings before interest, taxes, depreciation, and amortization (EBITDA) has been revised to a range of €14.5 million to €16.5 million. This signifies a 28% surge from the previous year.

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