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Bragg Gaming Group pointed to emerging markets such as Latam and Africa as future growth drivers in its Q1 2024 financial report.

Topline numbers

Bragg posted revenue of €23.8m in Q1 2024, amid a year-on-year increase of 4.2%.

CEO Matevž Mazij said the improvement was driven by a combination of organic growth among Bragg’s existing customers, the addition of new customers in multiple jurisdictions, and “impressive results” from the company’s in-house Wild Streak Gaming studio.

From the improved revenue figure, however, the business declared a gross profit of €11.9m, down 2.8%, at a gross profit margin of 49.9%, down from 53.5%.

Meanwhile adjusted EBITDA came in at €3.4m, a 12.4% drop compared to the previous year, as the firm’s adjusted EBITDA margin dropped from 17% to 14.3%.

Mazij said the reductions in gross profit and EBITDA stemmed from Bragg’s extension and renegotiation of its contract with Entain-owned BetCity.nl.

Signed in November last year, the renegotiated contract saw Bragg extend its agreement to provide BetCity’s PAM platform until 2025.

Strategic review ongoing

CEO Mazij suggested that although a strategic alternatives review is underway within Bragg, “it’s important to emphasise that we are operating the business as usual and remain laser-focused on capitalising on growth opportunities.”

In March, Bragg revealed it had formed a special committee to explore strategic alternatives, including a sale of the business.

Chaired by M&A expert Don Robertson, the committee set out to review a range of options which also included a sale of selected assets, a merger, new financing or further acquisitions.

The change came about following a November 2023 open letter penned by Jeremy Raper, the CEO of Bragg’s second largest disclosed investor at the time, Raper Capital.

“Suffice to say, the public markets have had plenty of opportunity to appraise our company’s growth story, over time, and yet the record demonstrates that it will not, or cannot, accord even the lower bounds of what most shareholders would consider fair value,” the letter said.

As such, the investor called for a full sale of the business to realise shareholder value not provided by the public markets.

In its Q1 update, Bragg said the business had “taken two significant steps to further fuel our growth initiatives”.

Those included the securing of a $7m investment through a promissory note to enhance the company’s balance sheet flexibility, and the hiring of Neil Whyte as chief commercial officer to bolster Bragg’s leadership team.

“While the strategic review process progresses, we remain bullish on the opportunities ahead as the trend of iGaming regulation continues worldwide,” said Mazij. 

“We see exciting potential in newly regulating markets like Brazil, Peru and Finland, as well as untapped opportunities in regions like Africa that we are actively exploring.”

Q1 highlights and future guidance

Highlights during Q1 including the company receiving a licence to supply content and content aggregation in Peru.

Online slot titles from land-based North American studio King Show Games also went live for the first time on an exclusive basis in the US under the Powered by Bragg programme.

Bragg also developed and delivered bespoke online gambling content for partners including Caesars Digital and Golden Nugget, while it also reached a global content distribution agreement with Light & Wonder.

Following the release of its results, Bragg reiterated its full-year 2024 guidance of revenue between €102m and €109m.

The business expects to generate full-year adjusted EBITDA between €15.2m and €18.5m.

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