Bragg Gaming has unveiled its financial performance for the Q2 2024, showcasing a record quarterly revenue of €24.9 million ($26.6 million). Despite a slight increase in revenue year-on-year, the company experienced declines in gross profit and adjusted EBITDA.
Bragg Gaming Reports Record €24.9 Million Revenue for Q2 2024
Financial Performance Overview
Record Quarterly Revenue
Bragg Gaming reported a record revenue of €24.9 million for Q2 2024, reflecting a 0.5% increase compared to the previous year. This achievement underscores the company’s ability to achieve substantial revenue growth despite facing challenges in other financial metrics.
Gross Profit and Adjusted EBITDA
Gross Profit
The company’s gross profit for Q2 2024 declined by 10.3%, amounting to €12.4 million. This reduction is attributed to a shift in the product mix, which has impacted profit margins. The company anticipated this decline as part of its strategic adjustments.
Adjusted EBITDA
Adjusted EBITDA also fell by 23.8%, reaching €3.6 million. This decrease reflects the impact of changes in Bragg Gaming’s product offerings and operational adjustments. The company had projected this decline in light of its evolving business strategy.
Guidance and Strategic Outlook
Full-Year Guidance
Bragg Gaming has reaffirmed its full-year guidance for 2024, projecting revenue in the range of €102 million to €109 million and adjusted EBITDA between €15.2 million and €18.5 million. This guidance reflects the company’s confidence in achieving its annual targets despite the challenges faced in the second quarter.
Strategic Review Process
The company is progressing with its strategic review process aimed at maximizing shareholder value, which was announced in March. While Bragg Gaming is pleased with the progress made, it has chosen not to provide detailed comments on the status of this process at this time.
CEO’s Commentary and Strategic Developments
CEO Matevž Mazij’s Insights
Bragg Gaming’s CEO, Matevž Mazij, acknowledged the decline in gross profit and adjusted EBITDA but highlighted positive trends in the company’s performance: “As expected, gross profit and adjusted EBITDA were down 10.3% and 23.8% year-on-year respectively, as our product mix has changed. However, I am encouraged by recent momentum for our higher margin products including for our proprietary iGaming content in North America and from launches of new customers powered by Bragg’s Player Account Management (“PAM”) and turnkey solutions.”
Mazij’s comments emphasize the company’s strategic focus on enhancing its product mix and expanding its market presence, particularly in North America.
Expansion and Market Presence
US Market and Global Reach
Bragg Gaming is making significant strides in expanding its presence in the U.S. iGaming market, where its overall share is currently estimated at less than 1%. The company is also expanding its distribution in regulated markets globally, now compliant with local regulations in over 30 jurisdictions.
“We have taken decisive steps to bolster our leadership team, expand our presence in key markets worldwide and make significant inroads in the U.S. market. With Bragg’s overall share of the US 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.”
Future Outlook
Mazij expressed confidence in Bragg Gaming’s future prospects, highlighting the company’s investments in technology and content. He emphasized that the steps taken today will lead to significant opportunities in the iGaming market:
“Looking ahead, I am confident that the seeds we are planting today – in the US, 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 US distribution and global reach, is poised to capitalize on the immense opportunities that lie ahead in the worldwide iGaming market.”
Strategic Initiatives and Market Position
Product and Technology Investments
Bragg Gaming’s strategic focus includes investing in higher-margin products and technological advancements. The company is enhancing its proprietary iGaming content and Player Account Management (PAM) solutions to better serve its clients and capture market share.
Expansion Efforts
The company’s expansion into new markets and its efforts to strengthen its leadership team are key components of its growth strategy. By increasing its footprint in the U.S. and other regulated markets, Bragg Gaming aims to leverage its global reach for future success.
Shareholder Value and Long-Term Goals
Bragg Gaming’s strategic review and operational adjustments are aimed at maximizing shareholder value. The company’s focus on long-term growth, innovation, and market expansion reflects its commitment to delivering strong financial performance and shareholder returns.
Conclusion: The Financial Results
Bragg Gaming’s Q2 2024 financial results reveal a record quarterly revenue and strategic shifts to address changes in its product mix. Despite declines in gross profit and adjusted EBITDA, the company remains optimistic about its growth prospects. With ongoing investments in technology, market expansion, and a commitment to maximizing shareholder value, Bragg Gaming is well-positioned for future success in the global iGaming market.
FAQs About Bragg Gaming’s Q2 2024 Financial Results
1. What was Bragg Gaming’s revenue for Q2 2024?
Bragg Gaming reported a record quarterly revenue of €24.9 million ($26.6 million) for Q2 2024.
2. How did Bragg Gaming’s revenue in Q2 2024 compare to the previous year?
Revenue increased by 0.5% year-on-year.
3. What were the figures for Bragg Gaming’s gross profit and adjusted EBITDA in Q2 2024?
Gross profit was €12.4 million, reflecting a 10.3% decrease from the previous year.
Adjusted EBITDA was €3.6 million, down 23.8% year-on-year.
4. Why did Bragg Gaming experience a decline in gross profit and adjusted EBITDA?
The declines in gross profit and adjusted EBITDA were due to a change in the company’s product mix, which impacted profit margins.
5. What is Bragg Gaming’s revenue and EBITDA guidance for the full year of 2024?
The company has set its revenue guidance in the range of €102 million to €109 million.
Adjusted EBITDA is expected to be between €15.2 million and €18.5 million.
6. What is the status of Bragg Gaming’s strategic review process?
Bragg Gaming is progressing with its strategic review process aimed at maximizing shareholder value. However, the company has not provided detailed updates on the status of this process.
7. What did CEO Matevž Mazij say about the company’s performance?
CEO Matevž Mazij acknowledged the decline in gross profit and adjusted EBITDA but expressed optimism about recent positive trends in higher-margin products and expansion in North America. He emphasized the company’s strategic focus on content and technology.
8. How is Bragg Gaming expanding its market presence?
Bragg Gaming is expanding its presence in the U.S. iGaming market and increasing its distribution in regulated markets globally. The company is now licensed or compliant in over 30 jurisdictions.
9. What are Bragg Gaming’s future plans and outlook?
Bragg Gaming is investing in higher-margin products, technology, and market expansion. The company is confident that these efforts will lead to significant growth opportunities and a stronger market position in the future.
