We Might See A Profit From Bragg Gaming Group Inc. (TSE:BRAG) Soon

By
Simply Wall St
Published
April 11, 2022
TSX:BRAG
Source: Shutterstock

With the business potentially at an important milestone, we thought we'd take a closer look at Bragg Gaming Group Inc.'s (TSE:BRAG) future prospects. Bragg Gaming Group Inc. operates as a technology and content supplier to the gaming industry worldwide. The CA$141m market-cap company announced a latest loss of €7.5m on 31 December 2021 for its most recent financial year result. Many investors are wondering about the rate at which Bragg Gaming Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Bragg Gaming Group

Bragg Gaming Group is bordering on breakeven, according to the 5 Canadian Hospitality analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of €2.3m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 118% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
TSX:BRAG Earnings Per Share Growth April 11th 2022

Given this is a high-level overview, we won’t go into details of Bragg Gaming Group's upcoming projects, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Bragg Gaming Group currently 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:

There are key fundamentals of Bragg Gaming Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Bragg Gaming Group, take a look at Bragg Gaming Group's company page on Simply Wall St. We've also compiled a list of essential factors 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.

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