The following is a summary of the Bragg Gaming Group Inc. (BRAG) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Bragg Gaming reported Q2 2024 revenue of €24.9 million, a record high, reflecting minimal growth of 0.5% year-over-year.

• Gross profit for Q2 2024 decreased by 10% to €12.4 million, with a gross profit margin of 49.9%.

• Adjusted EBITDA for Q2 2024 was €3.6 million, down 24% year-over-year, with an adjusted EBITDA margin of 14.5%.

• Revenue from content made up 80% of total revenue, an increase from 77% in Q2 2023.

• The company experienced a decline in PAM and turnkey revenue, which represented 20% of total revenue.

Business Progress:

• Bragg expanded into new states in the U.S., including Pennsylvania and New Jersey, enhancing its U.S. market presence.

• The company launched new content and technology, notably its SI Gaming content in collaboration with MGM and Borgata and expanded its relationship with Golden Nugget in New Jersey.

• Significant growth in player account management technology adoption, specifically in the Czech Republic with Kingsbet, and in the Netherlands with HardRockCasino.

• Launched new sportsbook products in the Netherlands to leverage the UEFA European championship football tournament.

• Released 17 new exclusive games during Q2, expanding global distribution with Light & Wonder.

Opportunities:

• Bragg is well-positioned to capitalize on the global regulated online casino market, projected to reach $63 billion by 2029.

• The expansion of proprietary content and third-party exclusive content in North America, Latin America, and newly regulating jurisdictions presents significant growth opportunities.

• Growth in PAM and managed services, particularly in Latin America, alongside content distribution improvements in Europe, could significantly enhance Bragg's market position.

Risks:

• The company is tracking towards the lower end of its full year revenue and adjusted EBITDA guidance, which may indicate underlying challenges in expected financial performance.

• Changes in product mix have led to lower gross profit and adjusted EBITDA, impacting profitability in the short term.

More details: Bragg Gaming Group IR

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