Bragg Gaming Soars After Raising 2022 Guidance

Posted on: February 8, 2022, 09:52h. 

Last updated on: February 8, 2022, 10:44h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Shares of Bragg Gaming Group (NASDAQ:BRAG) are surging Tuesday after the Canadian gaming technology provider lifted its 2022 guidance. It also delivered a preliminary outlook for its fourth quarter and all of 2021 that indicates the company will top estimates for those periods.

Bragg Gaming
The Nasdaq market site in New York, listing venue for Bragg Gaming. The stock is soaring today on a strong 2022 outlook. (Image: Wall Street Journal)

In midday trading, the stock is higher by almost 18 percent on volume that’s already more than double the daily average. Not only does that make Bragg one of today’s best-performing gaming equities, it puts the stock on pace for its highest close since December.

Momentum across Bragg’s current operations resulted in expected 2021 full year revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) exceeding the company’s previously provided guidance,” said Bragg in a statement.

For the last three months of 2021, Bragg forecast EBITDA of $1.5 million on sales of $17.6 million. For 2021, the company’s preliminary view is EBITDA of $8 million on revenue of $66.1 million.

Bragg 2022 Guidance Impressive

With analysts and investors pensive about what 2022 has in store for small-cap gaming equities, Bragg’s 2022 outlook is likely the bigger catalyst for today’s sharp move in the shares.

The company boosted its 2022 EBITDA outlook to $10.8 million to $12 million from prior guidance of $7 million to $8 million, while estimating full-year revenue of $78 million to $82 million, up from its previous estimate of $67 million to $70 million.

The vibrant outlook from Bragg comes as the shares shed 71.63 percent of their value over the past year and three months. That’s after the company announced a strategic review that included restructuring the chief executive officer role.

Bragg provides internet casino and sportsbook technology services to gaming operators via its ORYX Gaming brand.

Bragg Lifts Addressable Market View, Too

Another catalyst for the stock today might be Bragg boosting its total addressable market (TAM) outlook.

“Since January 2021, Bragg’s Gaming has gone live with its player-popular content in the following regulated iGaming markets: Switzerland, Germany, Greece, the Netherlands, the United Kingdom, and the Czech Republic,” said the company.

Bragg expects the aggregate 2022 online casino total addressable market in those countries will be $9.5 billion. The company says its current TAM is $12.5 billion and notes that figure can swell to $18 billion amid “expectations for initial activations this year in several US iGaming markets and in Ontario, as well as in other global iGaming markets.”

The company added its previously announced acquisition of Spin Games, gaming technology and content provider that has agreements in regulated US and Canadian markets, is on track to close in the current quarter.