Bragg Gaming Reports Q2 Revenue Rise

Bragg Gaming reported second quarter results of:

Revenues €24.9 million up 0.5% from same quarter last year

Gross Profit €12.4 million down 10.3% from same period last year

Chief Executive Officer Commentary

Matevž Mazij, Chief Executive Officer for Bragg, commented: “In the second quarter, we delivered revenues of EUR 24.9 million (USD 26.6 million), a new quarterly record and increase of 0.5% year over year, reflecting a robust business performance diversified over several growing iGaming markets and in-demand product verticals. As expected, gross profit and adjusted EBITDA were down 10.3% and 23.8% year over year respectively, as our product mix has changed. However, I am encouraged by recent momentum for our higher margin products including for our proprietary iGaming content in North America, and from launches of new customers powered by Bragg’s Player Account Management (“PAM”) and turnkey solutions. I am also pleased with sequential growth in revenue (+4.4%), gross profit (+4.4%) and Adjusted EBITDA (+6.0%) compared to the first quarter of the year, a timeframe during which our product mix has remained consistent, and I am confident that we have the products, the strategy and the expertise in place to be able to continue to grow our revenues and profit margins in the second half of the year and into 2025.

“We have taken decisive steps to bolster our leadership team, expand our presence in key markets worldwide, and make significant inroads in the U.S. market. With Bragg’s overall share of the U.S. iGaming content supplier market still estimated at below 1%, our expanding distribution in the United States along with our extensive distribution reach in regulated markets globally, represents a huge upside opportunity for the Company, which is now licensed, certified or otherwise compliant with relevant local regulations in more than 30 jurisdictions. In the U.S. we are pleased to be on track to more than double our wagering volume this year compared to 2023, and we look forward to continuing the trend into future years. Looking ahead, I am confident that the seeds we are planting today – in the U.S., in content, and in our technology platform – will yield a robust harvest in the future. We are building a stronger, more agile Bragg that, along with our U.S. distribution and global reach, is poised to capitalize on the immense opportunities that lie ahead in the worldwide iGaming market.”

Recent Business Highlights

Additional June 30, 2024 Key Financial Metrics

Reiterates Full Year 2024 Guidance

Bragg reiterates its 2024 full year revenue guidance range of EUR 102.0-109.0 million (USD 109.1-116.6 million) and its full year Adjusted EBITDA range of EUR 15.2-18.5 million (USD 16.3-19.8 million), noting that the Company is currently tracking to the lower end of guidance.

Strategic Review Process

In March 2024, Bragg announced that it was undertaking a review of strategic alternatives for maximizing shareholder value. The Company continues to be pleased with the progress made to date but will not be providing specific comments on the status of the process until circumstances warrant.