TORONTO, Wednesday – Bragg Gaming Group Inc., a company specializing in computer rental and leasing services, announced today a significant expansion of its business operations through the acquisition of an unnamed entity. The details of the acquisition, which was revealed in a recent Form 6-K filing with the Securities and Exchange Commission, have not been fully disclosed to the public.
The Toronto-based Bragg Gaming Group, listed under the standard industrial classification code for services related to computer rental and leasing, has its principal executive offices located at 130 King Street West, Suite 1955, Toronto, Ontario. The company's SEC filing, dated today, June 26, 2024, indicates a strategic move that could potentially enhance its service offerings and market reach.
While the specifics of the acquisition, including the name of the acquired company and the financial terms, have not been made available, the filing underscores Bragg Gaming Group's commitment to growth and expansion within its sector. The company, which operates under the SEC file number 001-40759, has not indicated whether the acquisition will have an immediate impact on its services or operations.
The SEC document, signed by Giles Potter, Chief Marketing Officer of Bragg Gaming Group, serves as an official notice of the company's latest corporate action. Investors and industry analysts will likely watch closely as further details emerge regarding the nature of the acquisition and its implications for Bragg Gaming Group's future.
This development comes as part of Bragg Gaming Group's ongoing efforts to strengthen its position in the competitive field of computer rental and leasing services. The company's strategic decisions, as reflected in its SEC filings, are closely monitored by stakeholders for indications of its direction and financial health.
In other recent news, Bragg Gaming Group has announced a series of significant developments. The company reported a modest 4.2% increase in Q1 revenue, reaching a record EUR 23.8 million, although gross profit and adjusted EBITDA decreased to EUR 11.4 million and EUR 3.4 million, respectively. In addition, Bragg has expanded its partnership with BetMGM in Pennsylvania, marking the third state where its online casino offerings are available via BetMGM, following Michigan and New Jersey.
Furthermore, Bragg has strengthened its presence in the Czech Republic through a strategic partnership with Kings Entertainment A.S., offering a full turnkey solution under the Kingsbet brand. The company is also actively exploring strategic alternatives such as mergers and acquisitions, signaling potential future growth.
In personnel changes, Robbie Bressler has been appointed as the new interim Chief Financial Officer, due to begin his role on July 1, 2024. Bressler's extensive background in finance within the gaming industry is expected to bolster the company's financial management and growth. These are the latest in a series of recent developments for Bragg Gaming Group.
InvestingPro Insights
In light of Bragg Gaming Group's recent announcement of expanding its operations through acquisition, investors may find the following insights from InvestingPro to be particularly relevant. The company holds a stronger cash position than debt, which is a positive sign for potential investors considering the company's financial stability as it undertakes this expansion (InvestingPro Tip: Holds more cash than debt on its balance sheet).
However, it's worth noting that analysts are not expecting Bragg Gaming Group to be profitable this year, and the company has not been profitable over the last twelve months (InvestingPro Tips: Analysts do not anticipate the company will be profitable this year; Not profitable over the last twelve months). This could be a point of concern for those looking at the immediate financial returns.
From a data standpoint, Bragg Gaming Group has a market capitalization of $146.01 million, and despite a negative P/E ratio, it has shown a high return over the last year, with a 1 Year Price Total Return of 87.1%. The company's revenue has grown by 7.07% in the last twelve months as of Q1 2024, which may be indicative of underlying business strength (InvestingPro Data: Market Cap $146.01M; P/E Ratio -23.67; Revenue Growth 7.07%).
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