Bragg Gaming Group Reports 4.2% Revenue Growth in 2024

Bragg Gaming Group, a prominent B2B iGaming technology provider, has recently unveiled its financial results for the first quarter of 2024, indicating a notable year-over-year revenue increase of 4.2%. The company's revenue surged to $25.6 million, up from $24.6 million in Q1 2023, underscoring its sustained momentum and strategic advancements.

Matevž Mazij, Chief Executive Officer of Bragg, expressed his satisfaction with the company's performance, noting the continuation of strong growth from the previous year. He highlighted Bragg's successful transition into a content-focused iGaming solutions provider, particularly in the dynamic North American and European markets.

 

The Key Moments

1. Solid Revenue Growth: Bragg Gaming Group reports a 4.2% year-over-year revenue increase in Q1 2024, reaching $25.6 million, driven by organic growth and new client acquisitions.
2. Operational Challenges: Despite revenue growth, the company faces challenges as gross profit decreases by 2.8% and adjusted EBITDA decreases by 12.4%, primarily due to increased expenses and slightly lower revenue performance in certain categories.
3. Expansion and Strategic Partnerships: Bragg expands its presence with exclusive content launches in key markets like New Jersey and Michigan, secures partnerships with Golden Nugget and Caesars Digital, and receives approval to offer online casino games in Latin America. Additionally, plans to expand into Delaware and explore other US markets demonstrate the company's growth ambitions.

 

In Q1 2024, Bragg's revenue growth was primarily fueled by organic expansion within its existing client base and the addition of new customers across multiple jurisdictions. The company's in-house Wild Streak Gaming casino games studio also played a pivotal role, delivering notable results and contributing significantly to the revenue increase.

Despite the overall revenue growth, Bragg experienced fluctuations in its operational metrics during the first quarter of 2024. The company's gross profit decreased by 2.8% to $12.8 million, with a gross profit margin of 49.9%. This decline was attributed to increased revenue performance in content products categories, albeit with slightly lower PAM and managed services revenues.

Furthermore, Bragg's adjusted EBITDA for Q1 2024 was $3.7 million, marking a decrease of 12.4% compared to the same period in the previous year. The adjusted EBITDA margin stood at 14.3%, down from 17.0% in Q1 2023. Operational losses during the quarter amounted to $1.4 million, a decrease of $1.9 million from Q1 2023, mainly due to a reduction in gross profit alongside an increase in selling, general, and administrative expenses, as well as a loss on remeasurement of deferred consideration.

Despite these operational challenges, Bragg continued to make significant strides in its business agreements and expansion efforts throughout Q1 2024. The company launched exclusive content in New Jersey and Michigan, further solidifying its position in these key markets. Moreover, Bragg entered into several strategic partnerships, including an exclusive online content deal with Golden Nugget in Michigan, and the launch of a personalized online slots title for Caesars Digital in New Jersey and Michigan.

In March, Bragg achieved a significant milestone by receiving approval as an authorized service provider from the Peruvian Ministry of Foreign Trade and Tourism, allowing it to offer online casino games in Latin America. This expansion into the Latin American market aligns with Bragg's broader strategy of global market penetration and diversification.

 

“Our proprietary and exclusive third-party content continues to gain ground with an increasing number of top-tier operators globally, and we introduced 19 new exclusive titles worldwide in the first quarter of 2024.”

 

The Future

Looking ahead, Bragg announced plans to expand its US content portfolio through a partnership with Light & Wonder, providing operators access to Bragg's exclusive portfolio through Light & Wonder's platform. The company also revealed its intention to expand into Delaware's online casino market later this year, with further plans to explore opportunities in West Virginia and Rhode Island.

In conclusion, Bragg Gaming Group's Q1 2024 financial results reflect steady revenue growth, driven by organic expansion, strategic partnerships, and market diversification efforts. Despite facing operational challenges, the company remains committed to capitalizing on growth opportunities in the rapidly evolving iGaming industry.