Bragg Gaming Group (BRAG) Q3 2024 earnings summary

Executive summary

• Strategic review process concluded with no sale or merger; ongoing execution of the current plan deemed best for shareholder value, with Board confidence in business plan and financial prospects.

• Achieved record Q3 2024 revenue of €26.2M, up 16% year-over-year, with gross profit up 18% and Adjusted EBITDA up 7%.

• Expanded content launches and partnerships in North America and Europe, including Caesars, FanDuel, and bet365.

• Strengthened executive team and realigned commercial strategy, including leadership transition and new CFO.

Financial highlights

• Q3 2024 revenue: €26.2M (+15.9% YoY); gross profit: €14M (+18.1% YoY); gross margin: 53.5%.

• Adjusted EBITDA: €4.1M (+7% YoY); margin: 15.6% (down from 16.9% YoY).

• Proprietary content revenue grew 40% YoY globally, driven by U.S. market expansion.

• Cash and equivalents at quarter-end: €11.6M; net working capital: €11.3M.

• Operating loss reduced to €0.4M from €2.1M; net loss narrowed to €0.17M from €2.95M YoY.

Outlook and guidance

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

• 2025 outlook positive, with expectations of sustained double-digit top-line growth, margin expansion, and increased operational leverage.

• Robust sales pipeline for 2025, with focus on proprietary content and U.S. market expansion; Brazil's regulated market launch on January 1, 2025.