The following is a summary of the Bragg Gaming Group Inc. (BRAG) Q2 2024 Earnings Call Transcript:
Financial Performance:
Bragg Gaming Q2 revenue was €24.9 million, up 0.5% YoY; gross profit down 10% to €12.4 million.
Adjusted EBITDA decreased 24% YoY to €3.6 million; revenue from content increased to 80%.
Business Progress:
Expanded into Pennsylvania and New Jersey markets; launched SI Gaming with MGM and Borgata.
Released 17 new games and expanded relationship with Golden Nugget in New Jersey.
Opportunity:
Bragg set to capitalize on the growing global regulated online casino market projected at $63 billion by 2029.
Expanding content and services in North America, Latin America, and new jurisdictions.
Risk:
Tracking towards lower end of full-year revenue and adjusted EBITDA guidance.
Changes in product mix leading to lower profitability in the short term.
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
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
