Bragg Gaming Group has announced record financial results for the third quarter of 2024, reporting a significant €26.2 million ($27.7 million) in revenue. This impressive figure marks a 16% year-over-year increase, underscoring Bragg’s ongoing growth trajectory and its success in expanding its proprietary content segment, particularly in the US market.
Bragg Gaming Group Achieves Record Revenue Growth in Q3 2024
The results demonstrate the strength of Bragg’s business strategy, with the company achieving 18% growth in gross profit and a 7% rise in adjusted EBITDA, which reached €4.1 million. The robust financial performance reflects Bragg’s focus on scaling its proprietary content and optimizing its distribution channels to capture a larger market share in North America.
Strategic Review and the Board’s Decision for Future Growth
Earlier in 2024, Bragg’s Board of Directors initiated a strategic review process to explore potential mergers, acquisitions, or even a sale of the company. This review, which involved a thorough examination of various proposals, was concluded recently. The Board determined that none of the options adequately reflected Bragg’s long-term value or its potential for growth.
The Special Committee overseeing the review ultimately decided that continuing with Bragg’s existing strategic plan would be the best way to maximize shareholder value. By focusing on its current growth strategy, the company is set to capitalize on its established technological infrastructure and market presence.
CEO Matevž Mazij on the Strategic Review and Future Outlook
Bragg Gaming Group’s CEO, Matevž Mazij, expressed his confidence in the company’s strategic direction: “The third quarter marked another period of strong growth and record results for Bragg. Revenue grew 16% year-over-year, gross profit increased 18%, and adjusted EBITDA rose 7%.”
He further added: “With the strategic review process complete, Bragg is now fully focused on commercialization and unlocking profitable growth, without the need for significant new investments in product development. Our decade-long investments in technology and talent have built a scalable platform that uniquely positions us for aggressive growth in 2025 and beyond.”
Key Drivers Behind Bragg’s Q3 Success
The primary factor behind Bragg’s record-breaking results is its focus on expanding its proprietary online content. The US market, in particular, has been a significant contributor, witnessing a 40% year-over-year growth. This success is largely due to Bragg’s enhanced content distribution network and the deployment of new, high-quality games that resonate with US players.
Investment in Technology and Content Expansion
Bragg’s strategic investment in technology and proprietary content has allowed it to maintain its competitive edge in the online gaming market. Bragg has successfully differentiated itself from its competitors by prioritizing the development of unique games and innovative solutions.
The company’s scalable platform, built over a decade of continuous investment, provides significant operational leverage. This efficiency will be crucial as Bragg expands its market share and drives profitability into 2025 and beyond.
Updated Financial Guidance for Full-Year 2024
Following its strong Q3 performance, Bragg Gaming Group has reaffirmed its full-year 2024 revenue guidance of €102-109 million and an adjusted EBITDA target of €15.2-18.5 million. The company anticipates continued growth in revenue and improved margins as it enters 2025, driven by its focus on content commercialization and optimization of existing resources.
Growth in the North American Market
The North American market remains a key growth area for Bragg, with its proprietary content driving substantial engagement. The 40% year-over-year increase in revenue from this segment highlights the effectiveness of Bragg’s content distribution strategy in the region.
By optimizing its content offerings and expanding partnerships with top-tier operators, Bragg has positioned itself to capture an even larger share of the lucrative North American gaming market.
Conclusion: The Growth
With its strategic review process now behind it, Bragg Gaming Group is poised for a future of accelerated growth and profitability. The company’s commitment to leveraging its technological assets and focusing on high-growth markets like the US underscores its confidence in achieving long-term success.
FAQs About Bragg Gaming Group Achieves Record Revenue Growth in Q3 2024
1. What were Bragg Gaming Group’s Q3 2024 financial results?
Bragg Gaming Group reported a record revenue of €26.2 million ($27.7 million) for Q3 2024, reflecting a 16% year-over-year increase. The company also achieved an 18% increase in gross profit and a 7% rise in adjusted EBITDA, reaching €4.1 million.
2. What drove Bragg’s growth in Q3 2024?
The significant growth was primarily driven by the strong performance of Bragg’s proprietary online content segment, especially in the US market, which saw a 40% year-over-year increase due to expanded content distribution.
3. What was the outcome of Bragg’s strategic review?
After a thorough review that began in March 2024, the Board of Directors decided to conclude the strategic review process. The Board determined that the best way to maximize shareholder value is to continue executing Bragg’s existing strategic plan rather than pursuing mergers or a sale.
4. Why did the Board of Directors decide to end the strategic review?
The Special Committee found that none of the proposals received during the strategic review process adequately reflected Bragg’s true value or its future growth potential. Thus, they decided that focusing on the company’s existing strategic plan would be the best course of action.
5. What did CEO Matevž Mazij say about the company’s future?
CEO Matevž Mazij expressed confidence in Bragg’s growth strategy, highlighting that the company’s investments in technology and talent over the past decade have created a scalable platform poised for significant growth in 2025 and beyond.
6. What is Bragg’s outlook for the full year of 2024?
Bragg has reaffirmed its full-year 2024 revenue guidance of €102-109 million and adjusted EBITDA in the range of €15.2-18.5 million. The company expects continued revenue growth and improved margins heading into 2025.
7. How is Bragg performing in the North American market?
Bragg has seen a 40% year-over-year growth in the North American market, driven by its proprietary content and expanded distribution network. This region remains a key focus for the company’s future expansion efforts.
8. What technological investments has Bragg made to drive growth?
Bragg has invested heavily in its technology and proprietary content, building a scalable and efficient platform that supports the company’s growth in existing and new markets. These investments are crucial for Bragg’s competitive advantage and operational leverage.
9. How will Bragg’s strategy impact its growth in 2025?
By focusing on content commercialization and optimizing existing resources, Bragg is well-positioned for aggressive growth and profitability in 2025. The company’s scalable platform will enable it to leverage operating efficiencies and expand its market share.
