A significant shift is underway at Bragg Gaming Group, marked by a strategic restructuring designed to reshape its future. The company is streamlining operations, a move that unfortunately includes a reduction of approximately 12% of its global workforce.
This isn’t simply a cost-cutting measure; it’s a deliberate realignment. The goal is to fortify the company’s financial structure, accelerate growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), and ultimately, achieve consistent and sustainable profitability.
The restructuring is expected to incur costs of around €1.0 million in the first quarter of the coming year, primarily related to employee severance. However, the company anticipates annual cash savings of approximately €4.5 million as a direct result of these changes and other efficiency improvements.
Interestingly, these savings estimates don’t yet factor in the potential benefits of a recently unveiled initiative centered around artificial intelligence. Just days before the restructuring announcement, Bragg Gaming forged a strategic partnership with Golden Whale Productions, signaling a commitment to becoming an “AI-first” company by 2027.
Artificial intelligence is now central to Bragg’s overhaul. The company envisions AI-enhanced products becoming standard in over 90% of all new releases, with AI impacting more than three-quarters of its operational workflows.
According to CEO Matevž Mazij, the company possesses strong underlying assets and promising future prospects. However, he acknowledges the need for decisive action in the face of evolving challenges, including increasingly complex regulations, regional tax issues, and a dynamic market landscape.
Mazij emphasized that the restructuring is a proactive step to preserve financial flexibility, boost EBITDA, and achieve cash profitability. The company believes it is currently undervalued and that improved financial performance will address this disparity and position it for future growth and potential market consolidation.
Further details regarding the new operating model and strategic initiatives for the year ahead will be revealed when Bragg Gaming announces its preliminary, unaudited results for the previous year-end.
The company’s leadership believes that after strategic hiring in recent years, focused expense reduction and organizational realignment are the final pieces needed to unlock its full potential and capitalize on emerging opportunities.
