Bragg Gaming Group (BRAG) Q3 2024 earnings summary

Executive summary

• Strategic review process concluded with no sale or merger; ongoing execution of current strategy deemed best for shareholder value, with Board confidence in business plan and financial prospects.

• Achieved record Q3 2024 revenue of EUR 26.2 million, up 16% year-over-year, with gross profit up 18% and Adjusted EBITDA up 7%.

• Significant growth in proprietary content, especially in the U.S., and expansion into new regulated markets such as Brazil and Delaware.

• Expanded content launches with major operators in North America and Europe, including Caesars, FanDuel, and bet365.

• Leadership transition completed, with new CEO and permanent CFO appointed.

Financial highlights

• Q3 2024 revenue reached EUR 26.2 million, a 15.9% increase from Q3 2023.

• Gross profit rose 18.1% to EUR 14 million, with a margin of 53.5%.

• Adjusted EBITDA grew 7% to EUR 4.1 million; margin at 15.6%, slightly down from 16.9% last year.

• Operating loss reduced to EUR 0.4 million from EUR 2.1 million; net loss narrowed to EUR 0.17 million from EUR 2.95 million YoY.

• Cash and cash equivalents at quarter-end were EUR 11.6 million; net working capital EUR 11.3 million.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at EUR 102–109 million; Adjusted EBITDA at EUR 15.2–18.5 million, tracking to lower end.

• 2025 outlook anticipates sustained double-digit top-line growth, margin expansion, and increased operational leverage.

• Robust sales pipeline for 2025, with continued focus on proprietary content and U.S. market expansion.

• U.S. and Brazil expected to be key growth markets in 2025.