BRAG Bragg Gaming Group Inc

Triple-digit revenue growth in the U.S.; significant increase in profitability through improved product mix

• 27%¹ Revenue Growth Excluding the Netherlands, Driven by U.S. Revenue Growth of 150%
• Gross Profit Margin Jumps to 56.0%, Driven by Proprietary Content Growth
• Adjusted EBITDA Rises 19.7%, Reflecting Strong Operational Leverage
• Robust 63.5% YoY Growth in Cash from Operations, to EUR 4.5 Million (USD 5.0 Million)
• 62% YoY Proprietary Content Revenue Growth, Reaching a Record 15.5% of Total Revenue

Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) (“Bragg” or the “Company”), a leading content and technology provider to the online gaming industry, today announced its financial results for the first quarter of 2025. The Company delivered diversified revenue growth, significant margin expansion, and strong cash generation, driven by its strategic focus on proprietary content and expansion in key growth markets.

Summary of Financial and Operational Highlights

 

 

 

 

 

 

 

Euros (millions)(1)

1Q25

 

1Q24

 

Change

Revenue

€

25.5

 

€

23.8

 

7.1

%

Gross profit

€

14.3

 

€

11.9

 

20.3

%

Gross profit margin

 

56.0

%

 

49.9

%

612

bps

Adjusted EBITDA(2)

€

4.1

 

€

3.4

 

19.7

%

Adjusted EBITDA margin

 

16.0

%

 

14.3

%

169

bps

Operating Income (Loss)

€

(1.7

)

€

(1.3

)

32.5

%

(1)

Bragg’s reporting currency is Euros. The exchange rate provided is EUR 1.00 = USD 1.12. Due to fluctuating currency exchange rates, this reference rate is provided for convenience only.

(2)

“Adjusted EBITDA” is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.

"We are thrilled to be reporting a strong start to 2025, showing that we are executing on our strategy and moving the metrics that we believe are most important to shareholder value," Matevž Mazij, CEO of Bragg, commented. "During the quarter we continued to improve our product mix, generating a greater proportion of revenue from high-margin proprietary content. In turn, this contributed to a higher Adjusted EBITDA margin, which combined with careful cost controls demonstrate operational leverage and increased cash generation.

“As is widely reported, the Netherlands market has slowed in recent quarters due to regulatory pressures, a challenge faced by Bragg as with all operators and suppliers who serve this regulated market. I’m pleased that Bragg has shown resilience under these pressures and is reducing its exposure to the Netherlands while seeing strong growth in markets such as the United States and Brazil. Excluding the Netherlands, revenue growth year-over-year came in at a robust 27%¹, driven in part by triple-digit growth in the U.S.”

____________________

¹

27% YoY revenue growth excluding revenue derived from Bragg's customers licensed and operating in the Netherlands jurisdiction

Key Highlights:

• Improved Margins and Cash generation: Adjusted EBITDA margins increased 169bps year over year; excluding non-recurring exceptional costs and FX impacts, EUR 0.9 million of free cash generated.
• Improved Revenue Diversification: Continued decreasing reliance on the Netherlands and lower-margin BetCity, replaced by growth in margin-accretive revenue in new markets
• US Market Growth: Bragg experienced triple-digit growth in U.S. revenue derived from its proprietary and exclusive online casino content, significantly outpacing the overall market growth; U.S. expected to contribute up to 15% of revenue this year.
• Brazil Launch: Successfully launched content in the newly regulated Brazilian iGaming market, a key strategic territory expected to contribute up to 10% of revenue this year.
• Strategic Partnerships: Announced a games development and remote games server technology leasing agreement with Caesars Digital, and invested in RapidPlay, a specialist Brazilian casino content studio.
• Key milestone: first game launched, Caesars Palace Signature Multihand Blackjack Surrender, under recently announced games development and technology partnership with Caesars Digital.
• Leadership Appointments: Appointed Holly Gagnon as Chair of the Board.
• Debt Reduction: Repaid USD 5 million of its secured credit note and is on track to finalize a new credit facility with improved terms.

2025 Outlook

Bragg remains focused on expanding its presence in regulated markets, enhancing its proprietary and exclusive content offerings, and leveraging its technology to drive continued growth and profitability in 2025 and beyond. The Company is actively advancing a robust pipeline of opportunities to drive strong momentum in the business.

The Company anticipates double-digit growth in Revenue and Adjusted EBITDA in the full year of 2025, with revenue guidance projected at between EUR 117.5 million and EUR 123.0 million, and Adjusted EBITDA in the range of between EUR 19.0 million and EUR 21.5 million, driven by a strategic focus on proprietary and exclusive content, and continued momentum in growth markets such as the U.S. and Latam.

Investor Conference Call

The Company will host a conference call today at 8:30 a.m. Eastern, and management will review a presentation that will be made available to download at https://investors.bragg.group/financials/quarterly-results/default.aspx.

To join the call, please use the below dial-in information:

Participant Dial-In Numbers USA / International Toll +1 (646) 307-1963 USA - Toll-Free (800) 715-9871 Canada - Toronto (647) 932-3411 Canada - Toll-Free (800) 715-9871 Conference ID 3967732

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 May 22, 2025, following the conclusion of the live call. To access the replay, dial (800) 770-2030 or (647) 362-9199 and input Playback ID: 3967732 followed by the # key.

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 2025, 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 the 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” means EBITDA after: (i) adding back share based compensation; (ii) adding back or deducting gain (loss) on lease modification; (iii) deducting lease payments recorded as a depreciation of right-of-use assets and lease interest expense; (iv) adding back or deducting gain (loss) on re-measurement of contingent and deferred consideration; (v) adding back or deducting gain (loss) on re-measurement of derivative liabilities; (vi) adding back or deducting gain (loss) on settlement of convertible debt; (vii) adding back or deducting gain (loss) on disposal of intangible assets and (viii) adding back certain exceptional costs. “Adjusted EBITDA margin” means Adjusted EBITDA divided by revenue. A reconciliation to IFRS financial measures is provided in this Press Release as well as in Company’s Management’s Discussion and Analysis (“MD&A”) for the three-month period ended March 31, 2025.

About Bragg Gaming Group

Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) is an iGaming content and turnkey technology solutions provider serving online and land-based gaming operators with its proprietary and exclusive content, and cutting-edge technology. Bragg Studios offer high-performing and passionately crafted casino game titles using the latest in data-driven insights from in-house brands including Wild Streak Gaming, Atomic Slot Lab and Indigo Magic. Its proprietary content portfolio is complemented by a cross section of exclusive titles from carefully selected studio partners under the Powered By Bragg program. Games built on Bragg’s remote games server (Bragg RGS) technology are distributed via the Bragg Hub content delivery platform and are available exclusively to Bragg customers. Bragg’s flexible, modern, omnichannel Player Account Management (PAM) platform powers multiple leading iCasino and sportsbook brands and at all points is supported by expert in-house managed, operational, and marketing services. Content delivered via the Bragg Hub either exclusively or from the Bragg aggregated games portfolio is managed from a single back-office which is supported by powerful data analytics tools, and Bragg’s award-winning Fuze™ player engagement toolset. Bragg is licensed, certified, approved and operational in many regulated iCasino markets globally, including the U.S., Canada, Brazil, United Kingdom, Italy, the Netherlands, Germany, Sweden, Spain, Malta and Colombia.

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Financial tables follow:

BRAGG GAMING GROUP INC.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2025

 

2024

Revenue

 

 

25,505

 

 

 

23,811

 

Cost of revenue

 

 

(11,221

)

 

 

(11,934

)

Gross Profit

 

 

14,284

 

 

 

11,877

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

(15,807

)

 

 

(12,387

)

Loss on remeasurement of derivative liability

 

 

—

 

 

 

(178

)

Gain on settlement of convertible debt

 

 

—

 

 

 

65

 

Loss on remeasurement of deferred consideration

 

 

(157

)

 

 

(645

)

Operating Loss

 

 

(1,680

)

 

 

(1,268

)

 

 

 

 

 

 

 

Net interest expense and other financing charges

 

 

(346

)

 

 

(592

)

Loss Before Income Taxes

 

 

(2,026

)

 

 

(1,860

)

 

 

 

 

 

 

 

Income taxes expense

 

 

(614

)

 

 

(44

)

Net Loss

 

 

(2,640

)

 

 

(1,904

)

 

 

 

 

 

 

 

Items to be reclassified to net loss:

 

 

 

 

 

 

Cumulative translation adjustment

 

 

(1,423

)

 

 

(383

)

 

 

 

 

 

 

 

Net Comprehensive Loss

 

 

(4,063

)

 

 

(2,287

)

 

 

 

 

 

 

 

Basic Loss Per Share

 

 

(0.11

)

 

 

(0.08

)

Diluted Loss Per Share

 

 

(0.11

)

 

 

(0.08

)

 

 

 

 

 

 

 

 

 

 

Millions

 

 

Millions

Weighted average number of shares - basic

 

 

25.1

 

 

 

23.5

 

Weighted average number of shares - diluted

 

 

25.1

 

 

 

23.5

 

 

BRAGG GAMING GROUP INC.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

 

 

 

As at

As at

 

March 31,

December 31,

 

2025

2024

Cash and cash equivalents

10,815

 

10,467

 

Trade and other receivables

21,517

 

20,072

 

Prepaid expenses and other assets

2,708

 

2,624

 

Total Current Assets

35,040

 

33,163

 

Property and equipment

1,295

 

1,341

 

Right-of-use assets

3,247

 

3,510

 

Intangible assets

33,507

 

35,859

 

Goodwill

32,182

 

32,722

 

Other assets

351

 

—

 

Total Assets

105,622

 

106,595

 

 

 

 

Trade payables and other liabilities

22,118

 

19,946

 

Income taxes payable

951

 

463

 

Lease obligations on right of use assets

855

 

882

 

Deferred consideration

1,467

 

1,244

 

Share appreciation rights liability

257

 

—

 

Loans payable

6,322

 

6,579

 

Total Current Liabilities

31,970

 

29,114

 

Deferred income tax liabilities

637

 

680

 

Lease obligations on right of use assets

2,473

 

2,815

 

Share appreciation rights liability

214

 

—

 

Other non-current liabilities

487

 

487

 

Total Liabilities

35,781

 

33,096

 

 

 

 

Share capital

131,853

 

131,729

 

Contributed surplus

17,961

 

17,680

 

Accumulated deficit

(83,850

)

(81,210

)

Accumulated other comprehensive income

3,877

 

5,300

 

Total Equity

69,841

 

73,499

 

Total Liabilities and Equity

105,622

 

106,595

 

 

BRAGG GAMING GROUP INC.

UNAUDITED SELECTED FINANCIAL GAAP AND NON-GAAP MEASURES

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

 

 

 

 

 

 

Three Months Ended March 31,

EUR 000

 

2025

 

2024

Revenue

 

25,505

 

 

23,811

 

Operating Loss

 

(1,680

)

 

(1,268

)

EBITDA

 

3,040

 

 

2,609

 

Adjusted EBITDA

 

4,084

 

 

3,411

 

 

BRAGG GAMING GROUP INC.

RECONCILIATION OF OPERATING LOSS TO EBITDA AND ADJUSTED EBITDA

PRESENTED IN EUROS (THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

 

 

 

 

 

 

 

Three Months Ended March 31,

EUR 000

 

2025

 

2024

Net Loss

 

(2,640

)

 

(1,904

)

Income taxes expense

 

614

 

 

44

 

Loss Before Income Taxes

 

(2,026

)

 

(1,860

)

Net interest expense and other financing charges

 

346

 

 

592

 

Depreciation and amortization

 

4,720

 

 

3,877

 

EBITDA

 

3,040

 

 

2,609

 

Depreciation of right-of-use assets

 

(214

)

 

(226

)

Lease interest expense

 

(27

)

 

(34

)

Gain on lease modification

 

(101

)

 

—

 

Share based compensation

 

846

 

 

184

 

Exceptional costs

 

383

 

 

120

 

Loss on remeasurement of derivative liability

 

—

 

 

178

 

Gain on settlement of convertible debt

 

—

 

 

(65

)

Loss on remeasurement of deferred consideration

 

157

 

 

645

 

Adjusted EBITDA

 

4,084

 

 

3,411

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250515497212/en/

For media enquiries or interview requests, please contact: Robert Simmons, Head of Communications at Bragg Gaming Group press@bragg.group Investors: James Carbonara Hayden IR +1 (646)-755-7412 james@haydenir.com