Bragg Gaming Group Announces Record Second Quarter 2024 Revenue of EUR 24.9 Million (USD 26.6 Million)
Summary of 2Q24 Financial and Operational Highlights |
|||||||||||
Euros (millions)(1) |
|
2Q24 |
|
2Q23 |
|
Change |
|
||||
Revenue |
|
€ |
24.9 |
|
€ |
24.7 |
|
0.5 |
% |
||
Gross profit |
|
€ |
12.4 |
|
€ |
13.8 |
|
(10.3) |
% |
||
Gross profit margin |
|
|
49.9 |
% |
|
55.9 |
% |
(600) |
bps |
||
Adjusted EBITDA(2) |
|
€ |
3.6 |
|
€ |
4.7 |
|
(23.8) |
% |
||
Adjusted EBITDA margin |
|
|
14.5 |
% |
|
19.2 |
% |
(470) |
bps |
||
Operating Income (Loss) |
|
€ |
(1.2) |
|
€ |
1.3 |
|
(195.6) |
% |
(1) |
Bragg’s reporting currency is Euros. The exchange rate provided is |
|
(2) |
“Adjusted EBITDA” is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below. |
Chief Executive Officer Commentary
Matevž Mazij, Chief Executive Officer for Bragg, commented: "In the second quarter, we delivered revenues of
“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
Recent Business Highlights
-
Appointed
Robbie Bressler as interim Chief Financial Officer,Neill Whyte as Chief Commercial Officer andTommaso Di Chio as Chief Legal & Compliance Officer - Launched 17 new titles globally in the second quarter of 2024, including a record 12 new games launches from our proprietary studio brands
-
Continued global expansion, striking deal to power Kingsbet.cz launch with an end-to-end iGaming solution that will increase reach in
Czech Republic with a second PAM and full turnkey solution client. This achievement aligns with Bragg’s strategic objective of growing higher margin, proprietary solutions which include PAM and turnkey services, as a proportion of product mix -
Continued
U.S. Expansion with BetMGM Pennsylvania content launch, extending content reach withU.S. online casino heavyweight to third state following similar launches inMichigan andNew Jersey -
Launched content with
Pennsylvania market leader FanDuel, as well as a successful launch with Golden Nugget inNew Jersey , a success which keeps the Company on track to cover approximately 90% of theU.S. total addressable market (TAM) with its newest iGaming content and technology by the end of the year -
Launched full turnkey solution to power the Hard Rock Casino brand in
the Netherlands , securing sixth PAM customer as part of Bragg’s strategic goal of being the leading technology and content supplier to the Dutch market -
Launched third-party sportsbooks with Betnation.nl (Metric), ComeOn.nl (Metric) and 711.nl (Kambi) in
the Netherlands , leveraging relationships with sports betting technology partners, underscoring Bragg’s continued commitment to be the preferred iGaming technology and content supplier in the Dutch market. - Global content distribution agreement announced with Light & Wonder, unlocking new content distribution opportunities
-
Continued to gain traction in the key European market of
Italy , where Bragg has partnered with Sisal -
Remaining outstanding Lind convertible debt of
USD 1 million settled in full, in cash, post quarter end
Additional
-
For the six-month period ended
June 30, 2024 , Cash flow generated from operations wasEUR 2.1 million (USD 2.2 million ), compared toEUR 5.2 million (USD 5.5million ) for the first six months of 2023 -
Cash and cash equivalents as of
June 30, 2024 wasEUR 10.9 million (USD 11.6 million ) and net working capital, excluding deferred consideration, loans payable, and convertible debt, wasEUR 10.5 million (USD 11.3 million ) -
Secured a
EUR 6.5 million (USD 7.0 million ) investment through a promissory note, enhancing balance sheet flexibility to execute on strategy.
Reiterates Full Year 2024 Guidance
Bragg reiterates its 2024 full year revenue guidance range of
Strategic Review Process
In
Investor Conference Call
The Company will host a conference call today,
To join the call, please use the below dial-in information:
Participant Toll-Free Dial-In Number (US and
Participant Toll Dial-In Number (International): 1 (646) 307-1963
Conference ID: 3347914
A webcast of the call and presentation may also be viewed at: https://investors.bragg.group/events-and-presentations/events/default.aspx
A replay of the call will be available until
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements or “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking statements”), including, without limitation, statements with respect to the following: the Company’s strategic growth initiatives and corporate vision and strategy; financial guidance for 2024, expected performance of the Company’s business; expansion into new markets, our strategy for customer retention, growth, product development, and market position; expected future growth and expansion opportunities; expected benefits of transactions; expected future actions and decisions of regulators and the timing and impact thereof. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and allowing readers to get a better understanding of the Company’s anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
All forward-looking statements contained in this news release or the conference call reflect the Company’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company’s forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the regulatory regime governing the business of the Company; the operations of the Company; the products and services of the Company; the Company’s customers; the growth of Company’s business, meeting minimum listing requirements of the stock exchanges on which the Company’s shares trade; the integration of technology; and the anticipated size and/or revenue associated with the gaming market globally.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the following: risks related to the Company’s business and financial position; that the Company may not be able to accurately predict its rate of growth and profitability; risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the inability to access sufficient capital from internal and external sources; the inability to access sufficient capital on favourable terms; realization of growth estimates, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices; changes in customer demand; disruptions to our technology network including computer systems and software; natural events such as severe weather, fires, floods and earthquakes; any disruptions to operations as a result of the strategic alternatives review process; and risks related to health pandemics and the outbreak of communicable diseases. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.
Non-IFRS Financial Measures
Statements in this news release make reference to “Adjusted EBITDA”, which is a non-IFRS (as defined herein) financial measure that the Company believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company’s past financial performance and prospects for the future. The Company believes that “Adjusted EBITDA” provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of the Company’s core operating results. “Adjusted EBITDA” is a financial measure that does not have a standardized meaning under International Financial Reporting Standards (“IFRS”). As there is no standardized method of calculating “Adjusted EBITDA”, it may not be directly comparable with similarly titled measures used by other companies. The Company considers “Adjusted EBITDA” to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. “Adjusted EBITDA” is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS. Adjusted EBITDA is more fully defined and discussed, and reconciliation to IFRS financial measures is provided, in Company’s Management’s Discussion and Analysis (“MD&A”) for the three-month and six-month period ended
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Financial tables follow:
|
||||||||||||||||
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE LOSS |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
24,861 |
|
|
|
24,729 |
|
|
|
48,672 |
|
|
|
47,588 |
|
Cost of revenue |
|
|
(12,457 |
) |
|
|
(10,903 |
) |
|
|
(24,391 |
) |
|
|
(21,542 |
) |
Gross Profit |
|
|
12,404 |
|
|
|
13,826 |
|
|
|
24,281 |
|
|
|
26,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
|
|
(13,702 |
) |
|
|
(13,082 |
) |
|
|
(26,089 |
) |
|
|
(24,988 |
) |
Gain (Loss) on remeasurement of derivative liability |
|
|
38 |
|
|
|
(115 |
) |
|
|
(140 |
) |
|
|
(179 |
) |
Gain on settlement of convertible debt |
|
|
— |
|
|
|
204 |
|
|
|
65 |
|
|
|
204 |
|
Gain (Loss) on remeasurement of deferred consideration |
|
|
45 |
|
|
|
438 |
|
|
|
(600 |
) |
|
|
708 |
|
Operating Income (Loss) |
|
|
(1,215 |
) |
|
|
1,271 |
|
|
|
(2,483 |
) |
|
|
1,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest expense and other financing charges |
|
|
(930 |
) |
|
|
(368 |
) |
|
|
(1,522 |
) |
|
|
(964 |
) |
Gain (Loss) Before Income Taxes |
|
|
(2,145 |
) |
|
|
903 |
|
|
|
(4,005 |
) |
|
|
827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income taxes |
|
|
(255 |
) |
|
|
(526 |
) |
|
|
(299 |
) |
|
|
(926 |
) |
Net Income (Loss) |
|
|
(2,400 |
) |
|
|
377 |
|
|
|
(4,304 |
) |
|
|
(99 |
) |
Items to be reclassified to net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cumulative translation adjustment |
|
|
387 |
|
|
|
(585 |
) |
|
|
4 |
|
|
|
(1,143 |
) |
Net Comprehensive Loss |
|
|
(2,013 |
) |
|
|
(208 |
) |
|
|
(4,300 |
) |
|
|
(1,242 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic Income (Loss) Per Share |
|
|
(0.10 |
) |
|
|
0.02 |
|
|
|
(0.18 |
) |
|
|
0.00 |
|
Diluted Income (Loss) Per Share |
|
|
(0.10 |
) |
|
|
0.02 |
|
|
|
(0.18 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Millions |
|
|
Millions |
|
|
Millions |
|
|
Millions |
||||
Weighted average number of shares - basic |
|
|
24.0 |
|
|
|
22.3 |
|
|
|
23.6 |
|
|
|
22.0 |
|
Weighted average number of shares - diluted |
|
|
24.0 |
|
|
|
23.6 |
|
|
|
23.6 |
|
|
|
23.3 |
|
|
||||||||
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION PRESENTED IN EUROS (THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
||||||||
|
||||||||
|
|
As at |
|
As at |
||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Cash and cash equivalents |
|
|
10,850 |
|
|
|
8,796 |
|
Trade and other receivables |
|
|
18,601 |
|
|
|
18,641 |
|
Prepaid expenses and other assets |
|
|
2,756 |
|
|
|
1,655 |
|
Total Current Assets |
|
|
32,207 |
|
|
|
29,092 |
|
Property and equipment |
|
|
1,027 |
|
|
|
640 |
|
Right-of-use assets |
|
|
3,124 |
|
|
|
3,233 |
|
Intangible assets |
|
|
36,821 |
|
|
|
38,133 |
|
|
|
|
32,308 |
|
|
|
31,921 |
|
Other assets |
|
|
358 |
|
|
|
348 |
|
Total Assets |
|
|
105,845 |
|
|
|
103,367 |
|
|
|
|
|
|
|
|
||
Trade payables and other liabilities |
|
|
20,057 |
|
|
|
21,846 |
|
Income taxes payable |
|
|
718 |
|
|
|
917 |
|
Lease obligations on right of use assets |
|
|
730 |
|
|
|
709 |
|
Deferred consideration |
|
|
1,797 |
|
|
|
1,513 |
|
Derivative liability |
|
|
154 |
|
|
|
471 |
|
Convertible debt |
|
|
463 |
|
|
|
2,445 |
|
Loans payable |
|
|
6,702 |
|
|
|
— |
|
Total Current Liabilities |
|
|
30,621 |
|
|
|
27,901 |
|
Deferred income tax liabilities |
|
|
699 |
|
|
|
852 |
|
Lease obligations on right of use assets |
|
|
2,464 |
|
|
|
2,568 |
|
Deferred consideration |
|
|
— |
|
|
|
1,426 |
|
Other non-current liabilities |
|
|
373 |
|
|
|
373 |
|
Total Liabilities |
|
|
34,157 |
|
|
|
33,120 |
|
|
|
|
|
|
|
|
||
Share capital |
|
|
131,405 |
|
|
|
120,015 |
|
Shares to be issued |
|
|
— |
|
|
|
3,491 |
|
Contributed surplus |
|
|
17,729 |
|
|
|
19,887 |
|
Accumulated deficit |
|
|
(80,367 |
) |
|
|
(76,063 |
) |
Accumulated other comprehensive income |
|
|
2,921 |
|
|
|
2,917 |
|
Total Equity |
|
|
71,688 |
|
|
|
70,247 |
|
Total Liabilities and Equity |
|
|
105,845 |
|
|
|
103,367 |
|
|
||||||||||
UNAUDITED SELECTED FINANCIAL GAAP AND NON-GAAP MEASURES |
||||||||||
(in thousands) |
||||||||||
|
||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||
Revenue |
|
24,861 |
|
|
24,729 |
|
48,672 |
|
|
47,588 |
Operating income (loss) |
|
(1,215 |
) |
|
1,271 |
|
(2,483 |
) |
|
1,791 |
EBITDA |
|
2,779 |
|
|
4,525 |
|
5,388 |
|
|
7,754 |
Adjusted EBITDA |
|
3,615 |
|
|
4,742 |
|
7,026 |
|
|
8,636 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808129267/en/
For media enquiries or interview requests, please contact:
Head of Communications at
Investors
Hayden IR
+1 (646)-755-7412
james@haydenir.com
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