Bragg Gaming Q2: $26.6M revenue, eyes US iGaming growth

Bragg Gaming Group Inc., a leading global provider of iGaming technology and content, has announced record revenue for the second quarter of 2024, reaching €24.9 million ($26.6 million). This marks a 0.5% increase compared to the same period in the previous year, reflecting the company’s strong performance across multiple growing iGaming markets and product verticals. Despite this achievement, the company experienced a decline in gross profit and adjusted EBITDA, both of which were anticipated due to changes in its product mix.

Q2 2024 Financial and Operational Performance

Bragg Gaming’s revenue for Q2 2024 was €24.9 million, a slight increase from €24.7 million in Q2 2023. However, the company’s gross profit dropped by 10.3%, down to €12.4 million, with the gross profit margin decreasing from 55.9% to 49.9%. Adjusted EBITDA also saw a decline of 23.8%, from €4.7 million to €3.6 million, with the adjusted EBITDA margin falling from 19.2% to 14.5%.

Commenting on the financial results, Matevž Mazij, Bragg’s Chief Executive Officer, stated: “In the second quarter, we delivered revenues of EUR 24.9 million (USD 26.6 million), a new quarterly record and increase of 0.5% year over year, reflecting a robust business performance diversified over several growing iGaming markets and in-demand product verticals. As expected, gross profit and adjusted EBITDA were down 10.3% and 23.8% year over year respectively, as our product mix has changed.”

Mazij also highlighted the company’s ongoing momentum in higher-margin products, particularly in North America, and new customer acquisitions driven by Bragg’s Player Management (PAM) and turnkey solutions. He expressed confidence in the company’s future growth, noting, “I am confident that we have the products, the strategy, and the expertise in place to be able to continue to grow our revenues and profit margins in the second half of the year and into 2025.”

Expansion and Strategic Moves

Bragg Gaming has been actively expanding its presence in key markets and strengthening its leadership team. The company appointed Robbie Bressler as interim Chief Financial Officer, Neill Whyte as Chief Commercial Officer, and Tommaso Di Chio as Chief Legal & Compliance Officer during the second quarter of 2024.

Additionally, Bragg launched 17 new gaming titles globally in Q2 2024, including a record 12 new games from its proprietary studio brands. This aligns with the company’s strategic objective of increasing the share of higher-margin, proprietary solutions in its product mix.

In the United States, Bragg made significant strides, including extending its content reach with New Jersey. The company also partnered with Pennsylvania market leader FanDuel and launched content with Golden Nugget in New Jersey. Bragg aims to cover approximately 90% of the U.S. total addressable market (TAM) with its latest iGaming content and technology by the end of the year.

Mazij commented on the U.S. expansion, saying, “With Bragg’s overall share of the U.S. iGaming content supplier market still estimated at below 1%, our expanding distribution in the United States along with our extensive distribution reach in regulated markets globally, represents a huge upside opportunity for the Company, which is now licensed, certified or otherwise compliant with relevant local regulations in more than 30 jurisdictions.”

Looking Ahead and Strategic Review

Bragg Gaming remains optimistic about its future, reiterating its full-year 2024 revenue guidance of €102.0 million to €109.0 million and adjusted EBITDA guidance of €15.2 million to €18.5 million. The company acknowledges that it is currently tracking toward the lower end of this guidance but remains confident in achieving its financial targets.

Regarding the strategic review process announced in March 2024, aimed at maximizing shareholder value, Bragg stated that it is pleased with the progress made so far. However, the company has chosen not to provide specific updates on the status of this process at this time.

Mazij concluded, “Looking ahead, I am confident that the seeds we are planting today – in the U.S., in content, and in our technology platform – will yield a robust harvest in the future. We are building a stronger, more agile Bragg that, along with our U.S. distribution and global reach, is poised to capitalize on the immense opportunities that lie ahead in the worldwide iGaming market.”

Source:

Bragg Gaming Group Announces Record Second Quarter 2024 Revenue of EUR 24.9 Million, bragg.group, August 8, 2024.