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Loss-Making Bragg Gaming Group Inc. (TSE:BRAG) Expected To Breakeven In The Medium-Term

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  • BRAG

We feel now is a pretty good time to analyse Bragg Gaming Group Inc.'s (TSE:BRAG) business as it appears the company may be on the cusp of a considerable accomplishment. Bragg Gaming Group Inc. provides business-to-business online gaming solutions worldwide. With the latest financial year loss of €14m and a trailing-twelve-month loss of €12m, the CA$308m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Bragg Gaming Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Bragg Gaming Group

According to the 5 industry analysts covering Bragg Gaming Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of €2.7m in 2023. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 106% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Bragg Gaming Group's upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Bragg Gaming Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Bragg Gaming Group, so if you are interested in understanding the company at a deeper level, take a look at Bragg Gaming Group's company page on Simply Wall St. We've also put together a list of important aspects you should look at:

  1. Valuation: What is Bragg Gaming Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bragg Gaming Group is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bragg Gaming Group’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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