Bragg Gaming Group (BRAG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached a record €24.9M, up 0.5% year-over-year, with sequential growth from Q1 2024 despite a challenging product mix.

• Gross profit declined 10.3% to €12.4M, with margin down to 49.9% due to product mix changes.

• Adjusted EBITDA dropped 23.8% to €3.6M, margin at 14.5%, but showed slight sequential improvement.

• Strategic review for potential sale, merger, or investment is ongoing amid heightened M&A activity in iGaming.

• Leadership team strengthened with new CFO, CCO, and Chief Legal Officer appointments.

Financial highlights

• Revenue up 0.5% year-over-year to €24.9M; sequential revenue growth of 4.4% from Q1 2024.

• Gross profit margin decreased to 49.9%; adjusted EBITDA margin at 14.5%.

• Proprietary and exclusive content revenue rose 12% year-over-year and 12.2% quarter-over-quarter.

• Content revenue comprised 80% of total revenue, up from 77% in Q2 2023.

• Cash and equivalents at €10.9M as of June 30, 2024; net working capital €10.5M.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at €102M–€109M; adjusted EBITDA at €15.2M–€18.5M, tracking to lower end.

• Expecting continued sequential growth in revenue, gross profit, and adjusted EBITDA in H2 2024.

• Gross margin expected to improve in 2025 as higher-margin content and services increase.

• Growth drivers include U.S. market expansion, new jurisdictions in LATAM and Europe, and increased proprietary content distribution.