Bragg Gaming Group Announces Record Fourth Quarter 2024 Revenue of EUR 27.2 Million (USD 28.8 Million) and Full Year Revenue of EUR 102.0 Million (USD 108.1 Million)

Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) ("Bragg" or the "Company"), a global B2B content and technology solutions provider to the iGaming industry, today reported record revenue for the fourth quarter and full year of 2024.

 

Summary of Financial and Operational Highlights
Euros (millions)(1)		4Q24			4Q23			Change
Revenue		€	27.2		€	23.4		16.3	%
Gross profit		€	15.8		€	12.0		30.9	%
Gross profit margin			58.0	%		51.5	%	650	bps
Adjusted EBITDA(2)		€	4.7		€	2.8		68.1	%
Adjusted EBITDA margin			17.2	%		11.9	%	531	bps
Operating Loss		€	(0.7)		€	(0.4)		(51.7)	%

Euros (millions)(1)		FY 24			FY 23			Change
Revenue		€	102.0		€	93.5		9.1	%
Gross profit		€	54.0		€	49.9		8.2	%
Gross profit margin			53.0	%		53.4	%	(40)	bps
Adjusted EBITDA(2)		€	15.8		€	15.2		3.6	%
Adjusted EBITDA margin			15.5	%		16.3	%	(80)	bps
Operating Loss		€	(3.5)		€	(0.8)		(356.0)	%

(1)		Bragg’s reporting currency is Euros. The exchange rate provided is EUR 1.00 = USD 1.06. Due to fluctuating currency exchange rates, this reference rate is provided for convenience only.
(2)		“Adjusted EBITDA” is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.

Chief Executive Officer Commentary

"Revenue and Adjusted EBITDA grew sequentially for four straight quarters, culminating in record 4Q 2024 revenue of EUR 27.2 million, up 16.3% year-over-year, and Adjusted EBITDA of EUR 4.7 million rising by 68.1%," said Matevž Mazij, CEO of Bragg. "Our investments in proprietary content and AI-enhanced platform capabilities are driving both revenue growth and improved profitability. As we execute our strategic plan in key markets like Brazil and the US, we're leveraging our scalable platform and margin-accretive products to accelerate financial performance. The executive team we've assembled has already demonstrated their value through deals like our Caesars partnership, positioning Bragg for sustained revenue expansion and profit growth in 2025."

Fourth Quarter 2024 and Recent Business Highlights

• Expanded to second Canadian province through Loto-Québec content deal
• Established content and technology partnership with Caesars Entertainment
• Launched operations in Brazil's regulated iGaming market
• Announced insider share purchases
• Reaffirmed strategic focus following corporate review
• Launched iGaming content in Delaware, the Company’s fifth U.S. iGaming state
• Expanded partnership with Caesars Digital to Pennsylvania and Ontario markets

Additional December 31, 2024 Key Financial Metrics

• For the year ended December 31, 2024, Cash flow generated from operations activities was EUR 11.2 million (USD 11.8 million), compared to EUR 11.7 million (USD 12.4 million) for the year ended December 31, 2023.
• Cash and cash equivalents as of December 31, 2024 was EUR 10.5 million (USD 11.1 million) and net working capital, excluding deferred consideration and loans payable was EUR 11.9 million (USD 12.6 million)

Reiterates 2025 Outlook

• Revenue Guidance: Revenue for the year ended December 31, 2025, is expected to reach between EUR 117.5 million and EUR 123.0 million, representing double digit growth compared to 2024.
• Adjusted EBITDA Guidance: Adjusted EBITDA is forecasted to range between EUR 19.0 million and EUR 21.5 million, compared to EUR 15.8 million in 2024, supported by a shift toward higher-margin product offerings.
• 2025e guidance (midpoint) Projects revenue increasing by 17.9% to EUR 120.25 million, EBITDA rising by 28.2% to EUR 20.25 million, and the EBITDA margin improving by 140 basis points to 16.8%.

Strategic Business Drivers

The Company is expecting to realize its anticipated 2025 results in part, as a result of certain strategic initiatives, including:

• Shift in Revenue Concentration: The percentage of revenue from the Company’s proprietary and exclusive content business is expected to increase providing a more margin-accretive mix and improving profitability with reduced reliance on third party content revenue by year end.
• Growth in Key Markets: Content-focused products, including proprietary, exclusive and aggregated content are projected to drive significant revenue growth in Brazil and North America, which are expected to contribute up to 10% and 15% of revenue, respectively by year-end.
• Brazil’s Growth Potential: The Company believes that its proprietary and exclusive content and aggregation businesses are strategically positioned to capture a significant share of Brazil’s USD 1.5 billion iGaming market, projected to more than double to over USD 3.3 billion by 2029, according to H2 Gambling Capital.
• US Market Penetration: The Company believes that it is strategically positioned for significant growth in the US market by leveraging its proprietary and exclusive content portfolio. Through integration with top-tier operators such as DraftKings, FanDuel, Rush Street, Caesars and BetMGM, and licenses in all key iGaming states, the Company’s content is accessible to over 90% of the US iGaming market, valued at over $8 billion, according to H2 Gambling Capital. Under the leadership of Neill Whyte, Chief Commercial Officer, and Garrick Morris, SVP (Commercial, US & Canada), veterans of the iGaming industry with multi-decade successful market penetration experience under their belt, the Company has strong leadership to garner enhanced market share. It is expected that proprietary and exclusive content growth in the US will be further driven by the recently announced technology and content partnership with Caesars Entertainment Inc. This partnership, which leverages the Company’s cutting-edge technology and innovative development strengthens the Company’s profile in a competitive and dynamic market.
• Stronger Penetration in Major European Markets: Bragg aims to expand content distribution in key Western European markets, including Italy, UK, Spain, and Sweden, by leveraging existing integrations with top operators and implementing targeted sales strategies.
• Expand Exclusive Partnerships: The Company plans to increase its roster of partner studios to enhance the release cadence of titles in North America. Additionally, Bragg aims to grow exclusive content distribution in Central European markets, including the Czech Republic and Germany, through strategic partnerships with studios such as GAMOMAT and King Show Games.
• Stability in PAM Business: The Company’s PAM business is expected to remain flat year-over-year, an overall positive, despite the anticipated contraction of the Netherlands market in 2025 due to regulatory changes made in the fourth quarter of 2024.
• Enhanced Technology Profile: The Company continues to innovate with technologies such as FUZE™, which provides bonuses, free rounds, tournaments, jackpots, recommendation engine and other engagement and promotional tools seamlessly across all iGaming, sports betting and iLottery products, requiring no additional integration. These advanced features enhance player experience and contribute to the growth of the Company’s product portfolio revenue.
• Data and AI Enhancements: By leveraging extensive gaming data, the Company generates actionable insights and employs AI-driven optimizations to elevate player experiences and enhance operator profitability, thereby accelerating profitable growth in proprietary and exclusive content verticals. Opportunities to leverage AI to reduce costs and enhance product margins are also being actively explored.
• Pipeline Opportunities: A robust pipeline of opportunities is under development, which, if realized, could further enhance 2025 performance but are not yet reflected in the current guidance.
• Stock Appreciation Rights Plan: Bragg has also introduced a new Stock Appreciation Rights (SAR) plan for its executive management team, further aligning management interests with those of shareholders. The SAR plan has been implemented under the Company’s Amended and Restated Omnibus Equity Incentive Plan and pays out only if the Company’s share price increases over a three-year period, with a full payout contingent on achieving a four-fold increase from a base price of CAD $5. This structure ensures that executive compensation is firmly tied to delivering significant shareholder value. Additionally, the plan includes accelerated vesting provisions in the event of a change of control, preserving alignment with shareholder interests in all value-creation scenarios. SAR award payouts may be settled through the payment of cash, the issuance of shares, or through a combination of both, subject to the discretion of the Company’s Board and availability of shares under the Company’s equity incentive plan at the time.

Investor Conference Call

The Company will host a conference call today at 8:30 a.m. Eastern, and management will review a presentation that will be made available to download at https://investors.bragg.group/financials/quarterly-results/default.aspx.

To join the call, please use the below dial-in information:

Participant Dial-In Numbers

USA / International Toll +1 (646) 307-1963

USA - Toll-Free (800) 715-9871

Canada - Toronto (647) 932-3411

Canada - Toll-Free (800) 715-9871

Conference ID 4536427

A webcast of the call may also be followed at: https://investors.bragg.group/events-and-presentations/events/default.aspx

A replay of the call will be available until April 9, 2025, following the conclusion of the live call. To access the replay, dial (800) 770-2030 or (647) 362-9199 and use the passcode 4536427.

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward-looking statements or “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking statements”), including, without limitation, statements with respect to the following: the Company’s strategic growth initiatives and corporate vision and strategy; financial guidance for 2025, expected performance of the Company’s business; expansion into new markets, our strategy for customer retention, growth, product development, and market position; expected future growth and expansion opportunities; expected benefits of transactions; expected future actions and decisions of regulators and the timing and impact thereof. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and allowing readers to get a better understanding of the Company’s anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

All forward-looking statements contained in this news release or the conference call reflect the Company’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company’s forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the regulatory regime governing the business of the Company; the operations of the Company; the products and services of the Company; the Company’s customers; the growth of Company’s business, meeting minimum listing requirements of the stock exchanges on which the Company’s shares trade; the integration of technology; and the anticipated size and/or revenue associated with the gaming market globally.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the following: risks related to the Company’s business and financial position; that the Company may not be able to accurately predict its rate of growth and profitability; risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the inability to access sufficient capital from internal and external sources; the inability to access sufficient capital on favourable terms; realization of growth estimates, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices; changes in customer demand; disruptions to our technology network including computer systems and software; natural events such as severe weather, fires, floods and earthquakes; any disruptions to operations as a result of the strategic alternatives review process; and risks related to health pandemics and the outbreak of communicable diseases. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.

Non-IFRS Financial Measures

Statements in this news release make reference to “Adjusted EBITDA”, which is a non-IFRS (as defined herein) financial measure that the Company believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company’s past financial performance and prospects for the future. The Company believes that “Adjusted EBITDA” provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of the Company’s core operating results. “Adjusted EBITDA” is a financial measure that does not have a standardized meaning under International Financial Reporting Standards (“IFRS”). As there is no standardized method of calculating “Adjusted EBITDA”, it may not be directly comparable with similarly titled measures used by other companies. The Company considers “Adjusted EBITDA” to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. “Adjusted EBITDA” is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS. Adjusted EBITDA is more fully defined and discussed, and reconciliation to IFRS financial measures is provided, in Company’s Management’s Discussion and Analysis (“MD&A”) for the three-month and twelve-month period ended December 31, 2024.

About Bragg Gaming Group

Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) is an iGaming content and turnkey technology solutions provider serving online and land-based gaming operators with its proprietary and exclusive content, and cutting-edge technology. Bragg Studios offer high-performing and passionately crafted casino game titles using the latest in data-driven insights from in-house brands including Wild Streak Gaming, Atomic Slot Lab and Indigo Magic. Its proprietary content portfolio is complemented by a cross section of exclusive titles from carefully selected studio partners under the Powered By Bragg program. Games built on Bragg’s remote games server (Bragg RGS) technology are distributed via the Bragg Hub content delivery platform and are available exclusively to Bragg customers. Bragg’s flexible, modern, omnichannel Player Account Management (PAM) platform powers multiple leading iCasino and sportsbook brands and at all points is supported by expert in-house managed, operational, and marketing services. Content delivered via the Bragg Hub either exclusively or from the Bragg aggregated games portfolio is managed from a single back-office which is supported by powerful data analytics tools, and Bragg’s award-winning Fuze™ player engagement toolset. Bragg is licensed, certified, approved and operational in many regulated iCasino markets globally, including the U.S, Canada, Brazil, United Kingdom, Italy, the Netherlands, Germany, Sweden, Spain, Malta and Colombia.

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Financial tables follow:

BRAGG GAMING GROUP INC.
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(In thousands, except share per share amounts)
		Year Ended December 31,
		2024				2023
Revenue			102,001				93,519
Cost of revenue			(47,956	)			(43,580	)
Gross Profit			54,045				49,939
Selling, general and administrative expenses			(57,795	)			(50,824	)
(Loss) on remeasurement of derivative liability			(94	)			(47	)
Gain on settlement of convertible debt			169				595
Gain (Loss) on remeasurement of deferred consideration			132				(440	)
Operating Loss			(3,543	)			(777	)
Net interest expense and other financing charges			(3,157	)			(2,149	)
Loss Before Income Taxes			(6,700	)			(2,926	)
Income taxes recovery (expense)			1,553				(910	)
Net Loss			(5,147	)			(3,836	)
Items to be reclassified to net loss:
Cumulative translation adjustment			2,408				(1,174	)
Items that will not be reclassified to net loss:
Remeasurement of employee obligations			(25	)			(3	)
Net Comprehensive Loss			(2,764	)			(5,013	)
Basic Loss Per Share			(0.21	)			(0.17	)
Diluted Loss Per Share			(0.21	)			(0.17	)
			Millions				Millions
Weighted average number of shares - basic			24.3				22.6
Weighted average number of shares - diluted			24.3				22.6

BRAGG GAMING GROUP INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
		As at				As at
		December 31,				December 31,
		2024				2023
Cash and cash equivalents			10,467				8,796
Trade and other receivables			20,072				18,641
Prepaid expenses and other assets			2,624				1,655
Total Current Assets			33,163				29,092
Property and equipment			1,341				640
Right-of-use assets			3,510				3,233
Intangible assets			35,859				38,133
Goodwill			32,722				31,921
Other assets			—				348
Total Assets			106,595				103,367
Trade payables and other liabilities			19,946				21,846
Income taxes payable			463				917
Lease obligations on right of use assets			882				709
Deferred consideration			1,244				1,513
Derivative liability			—				471
Convertible debt			—				2,445
Loans payable			6,579				—
Total Current Liabilities			29,114				27,901
Deferred income tax liabilities			680				852
Lease obligations on right of use assets			2,815				2,568
Deferred consideration			—				1,426
Other non-current liabilities			487				373
Total Liabilities			33,096				33,120
Share capital			131,729				120,015
Shares to be issued			—				3,491
Contributed surplus			17,680				19,887
Accumulated deficit			(81,210	)			(76,063	)
Accumulated other comprehensive income			5,300				2,917
Total Equity			73,499				70,247
Total Liabilities and Equity			106,595				103,367

BRAGG GAMING GROUP INC.
SELECTED FINANCIAL GAAP AND NON-GAAP MEASURES
(in thousands)
		Three Months Ended December 31,						Year Ended December 31,
EUR 000		2024			2023			2024			2023
Revenue		27,160			23,357			102,001			93,519
Operating Loss		(654	)		(431	)		(3,543	)		(777	)
EBITDA		4,039			3,327			13,351			12,290
Adjusted EBITDA		4,682			2,786			15,790			15,236

 

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