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Printed Nov 14, 2024  • 13 minute learn
Article content material
- Third quarter income elevated 16% YoY to a report degree; gross revenue rose 18% and adjusted EBITDA grew by 7%
- Particular Committee concludes strategic evaluation; ongoing execution of Bragg’s technique most suitable choice to maximise shareholder worth
- 40% proprietary on-line content material income progress YoY, fueled by expanded distribution of content material within the US
- Effectively positioned to keep up momentum underneath new management staff
TORONTO — Bragg Gaming Group ( NASDAQ: BRAG, TSX: BRAG) (“Bragg” or the “Firm”), a world B2B content-driven iGaming know-how supplier, right this moment reported report income for the third quarter of 2024.
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|
Abstract of 3Q24 Monetary and Operational Highlights |
|||||||||
|
Euros (thousands and thousands)(1) |
3Q24 |
3Q23 |
Change |
||||||
|
Income |
€ |
26.2 |
€ |
22.6 |
15.9 |
% |
|||
|
Gross revenue |
€ |
14.0 |
€ |
11.9 |
18.1 |
% |
|||
|
Gross revenue margin |
53.5 |
% |
52.5 |
% |
99 |
bps |
|||
|
Adjusted EBITDA(2) |
€ |
4.1 |
€ |
3.8 |
7.1 |
% |
|||
|
Adjusted EBITDA margin |
15.6 |
% |
16.9 |
% |
(129 |
) bps |
|||
|
Working Revenue (Loss) |
€ |
(0.4) |
€ |
(2.1) |
(81.0 |
)% |
|||
| (1) |
Bragg’s reporting foreign money is Euros. The trade fee offered is EUR 1.00 = USD 1.12. As a consequence of fluctuating foreign money trade charges, this reference fee is offered for comfort solely. |
|
|
(2) |
“Adjusted EBITDA” is a non-IFRS measure. For essential info on the Firm’s non-IFRS measures, see “Non-IFRS Monetary Measures” beneath. |
Chief Government Officer Commentary
Matevž Mazij, Chief Government Officer for Bragg, commented, “The third quarter marked one other interval of robust progress and report outcomes for Bragg. Income grew 16% year-over-year, gross revenue elevated 18%, and Adjusted EBITDA rose 7%. Within the U.S., robust third quarter income positive aspects from content material distribution helped drive a 40% international improve in proprietary on-line content material income year-over-year.
“Moreover, we introduced right this moment that the Board of Administrators has unanimously determined to conclude its evaluation of strategic options for Bragg. After intensive analysis and deliberation, the Board decided that the continued execution of the Firm’s strategic plan is the easiest way to maximise worth for shareholders at the moment.
“Since stepping in as Chairman 16 months in the past after which as CEO 14 months in the past, we’ve remodeled our government staff, restructured business operations, and sharpened our gross sales technique with a focused, jurisdictional strategy. These decisive actions place us to drive progress and seize market alternatives with larger precision and affect. Beneath new management, we’ve constructed a powerful pipeline of tier 1 alternatives throughout key markets and key merchandise, positioning Bragg for accelerated top- and bottom-line progress.
“With the strategic evaluation course of now full, Bragg is now totally targeted on commercialization and unlocking worthwhile progress, with out the necessity for vital new funding in product improvement. Our decade-long investments in know-how and expertise, mixed with a strong management staff, have constructed a scalable platform that uniquely positions us for aggressive progress in 2025 and past. With vital working leverage now inside attain, we’re poised for an thrilling, high-growth, and worthwhile future.”
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Third Quarter 2024 and Latest Enterprise Highlights
- Launched its latest video games and Distant Gaming Server (RGS) know-how with Caesars Digital in Pennsylvania and Ontario. The launch marked the enlargement of Bragg’s present partnership with Caesars Digital, following earlier launches in New Jersey and Michigan respectively, doubling the variety of states/provinces during which Bragg content material is obtainable on Caesars Palace On-line On line casino and Caesars Sportsbook & On line casino.
- Launched its latest video games and RGS know-how with FanDuel in New Jersey, including to its present distribution with the main North American operator in Michigan, Pennsylvania, Connecticut and Ontario
- Put up-quarter finish, the Firm moreover launched its latest video games and RGS know-how with bet365 in New Jersey, following on from its second quarter launch in Pennsylvania, and an earlier launch in Ontario with the foremost international iGaming operator
- Launched HardRockCasino.nl within the Dutch market, supplying its cutting-edge participant account administration (PAM) software program to the model. The settlement is Bragg’s sixth PAM buyer within the Netherlands, reinforcing Bragg’s standing because the main know-how and content material provider within the Dutch market
- Launched the Kambi sportsbook on 711.nl, including an extra revenue-generating product stream to a key PAM buyer within the Netherlands
- Administration is happy to announce the appointment of Robbie Bressler to CFO of Bragg, efficient instantly. Robbie had been serving as Bragg’s interim CFO since July 1, 2024.
Extra September 30, 2024 Key Monetary Metrics
- For the nine-month interval ended September 30, 2024, Money movement generated from operations was EUR 8.4 million (USD 9.4 million), in comparison with EUR 6.2 million (USD 6.9 million) for the nine-month interval ended September 30, 2023.
- Money and money equivalents as of September 30, 2024 was EUR 11.6 million (USD 13.0 million) and web working capital, excluding deferred consideration, loans payable, and convertible debt, was EUR 11.3 million (USD 12.7 million)
Strategic Options Course of Concluded
The Bragg Board introduced the strategic options course of in March 2024 with the formation of a Particular Committee, comprised solely of impartial members of the Board. The Committee, along with its advisors Oakvale Capital LLP and Blake, Cassels & Graydon LLP, evaluated a variety of strategic options for maximizing shareholder worth together with a possible sale or merger of the Firm. Bragg solicited curiosity from a big variety of potential counterparties and obtained a number of non-binding proposals.
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After cautious consideration, the Board, on advice from the particular committee, unanimously decided that not one of the proposals obtained mirror the Firm’s intrinsic worth or present and projected monetary efficiency, and subsequently elected to conclude its evaluation and disband the Particular Committee.
Don Robertson, impartial Board member and Chair of the Particular Committee, mentioned, “After a complete and exhaustive course of, the Committee really useful, and the Board unanimously agreed, that persevering with to execute Bragg’s strategic plan as an impartial public firm is one of the best strategy for maximizing shareholder worth. Though the method has now concluded, Bragg’s Board will proceed to be open to and take into account all alternatives for enhancing shareholder worth.”
“Over the previous yr, our monetary efficiency, cashflow era and income outlook have considerably improved. We stay extraordinarily assured about our marketing strategy, working technique, and monetary prospects” mentioned Matevz Mazij, Chairman and CEO of Bragg.
Reiterates Full 12 months 2024 Steering and 2025 Outlook
Bragg reiterates its 2024 full yr income steering vary of EUR 102.0-109.0 million (USD 114.2-122.1 million) and its full yr Adjusted EBITDA vary of EUR 15.2-18.5 million (USD 17.0-20.7 million), noting that the Firm is presently monitoring to the decrease finish of steering.
Bragg is actively advancing a strong pipeline of alternatives that’s anticipated to drive robust momentum as we enter 2025. The outlook for 2025 stays optimistic, with expectations of sustained double-digit high line progress, increasing backside line margins, and elevated operational leverage, additional strengthening Bragg’s place available in the market. The previous steering and outlook represent forward-looking info throughout the that means of relevant securities legal guidelines, and relies on a variety of assumptions and topic to a variety of dangers.
Investor Convention Name
The Firm will host a convention name right this moment, November 14, 2024, at 8:30 a.m. Jap Time, to debate its third quarter 2024 outcomes. In the course of the name, administration will evaluation a presentation that might be made accessible to obtain at https://traders.bragg.group/financials/quarterly-results/default.aspx.
To hitch the decision, please use the beneath dial-in info:
Participant Toll-Free Dial-In Quantity (US and Canada): 1 (800) 715-9871
Participant Toll Dial-In Quantity (Worldwide): 1 (646) 307-1963
UK Toll Free: +44 800 358 0970
Convention ID: 2654367
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A webcast of the decision and presentation might also be considered at: https://traders.bragg.group/events-and-presentations/occasions/default.aspx
A replay of the decision might be accessible till November 21, 2024, following the conclusion of the stay name. To entry the replay, dial + 1 (647) 362-9199 or +1 (800) 770-2030 (toll-free) or +44 20 3433 3849 (UK) and use the passcode 2654367.
Cautionary Assertion Relating to Ahead-Trying Data
This information launch comprises forward-looking statements or “forward-looking info” throughout the that means of relevant Canadian securities legal guidelines (“forward-looking statements”), together with, with out limitation, statements with respect to the next: the Firm’s strategic progress initiatives and company imaginative and prescient and technique; monetary steering for 2024, anticipated efficiency of the Firm’s enterprise; enlargement into new markets, our technique for buyer retention, progress, product improvement, and market place; anticipated future progress and enlargement alternatives; anticipated advantages of transactions; anticipated future actions and selections of regulators and the timing and affect thereof. Ahead-looking statements are offered for the aim of presenting details about administration’s present expectations and plans referring to the longer term and permitting readers to get a greater understanding of the Firm’s anticipated monetary place, outcomes of operations, and working surroundings. Usually, however not at all times, forward-looking statements may be recognized by means of phrases reminiscent of “plans”, “expects” or “doesn’t anticipate”, “is predicted”, “funds”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, or describes a “aim”, or variation of such phrases and phrases or state that sure actions, occasions or outcomes “might”, “might”, “would”, “may” or “will” be taken, happen or be achieved.
All forward-looking statements contained on this information launch or the convention name mirror the Firm’s beliefs and assumptions based mostly on info accessible on the time the statements have been made. Precise outcomes or occasions might differ from these predicted in these forward-looking statements. All the Firm’s forward-looking statements are certified by the assumptions which are acknowledged or inherent in such forward-looking statements, together with the assumptions listed beneath. Though the Firm believes that these assumptions are cheap, this listing shouldn’t be exhaustive of things which will have an effect on any of the forward-looking statements. The important thing assumptions which have been made in reference to the forward-looking statements embrace the regulatory regime governing the enterprise of the Firm; the operations of the Firm; the services and products of the Firm; the Firm’s prospects; the expansion of Firm’s enterprise, assembly minimal itemizing necessities of the inventory exchanges on which the Firm’s shares commerce; the combination of know-how; and the anticipated measurement and/or income related to the gaming market globally.
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Ahead-looking statements contain identified and unknown dangers, future occasions, circumstances, uncertainties and different elements which will trigger precise outcomes, efficiency or achievements to be materially totally different from any future outcomes, prediction, projection, forecast, efficiency or achievements expressed or implied by the forward-looking statements. Such elements embrace, amongst others, the next: dangers associated to the Firm’s enterprise and monetary place; that the Firm might not be capable to precisely predict its fee of progress and profitability; dangers related to common financial circumstances; antagonistic business occasions; future legislative and regulatory developments; the shortcoming to entry ample capital from inner and exterior sources; the shortcoming to entry ample capital on beneficial phrases; realization of progress estimates, revenue tax and regulatory issues; the flexibility of the Firm to implement its enterprise methods; competitors; financial and monetary circumstances, together with volatility in curiosity and trade charges, commodity and fairness costs; modifications in buyer demand; disruptions to our know-how community together with pc techniques and software program; pure occasions reminiscent of extreme climate, fires, floods and earthquakes; any disruptions to operations because of the strategic options evaluation course of; and dangers associated to well being pandemics and the outbreak of communicable illnesses. Though the Firm has tried to establish essential elements that might trigger precise actions, occasions or outcomes to vary materially from these described in forward-looking statements, there could also be different elements that trigger actions, occasions or outcomes to not be as anticipated, estimated or supposed. There may be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, readers shouldn’t place undue reliance on forward-looking statements.
The Firm disclaims any intention or obligation to replace or revise any forward-looking statements whether or not because of new info, future occasions, or in any other case, besides in accordance with relevant securities legal guidelines.
Non-IFRS Monetary Measures
Statements on this information launch make reference to “Adjusted EBITDA”, which is a non-IFRS (as outlined herein) monetary measure that the Firm believes is acceptable to supply significant comparability with, and to boost an total understanding of, the Firm’s previous monetary efficiency and prospects for the longer term. The Firm believes that “Adjusted EBITDA” gives helpful info to each administration and traders by excluding particular bills and objects that administration consider aren’t indicative of the Firm’s core working outcomes. “Adjusted EBITDA” is a monetary measure that doesn’t have a standardized that means underneath Worldwide Monetary Reporting Requirements (“IFRS”). As there is no such thing as a standardized methodology of calculating “Adjusted EBITDA”, it is probably not instantly comparable with equally titled measures utilized by different corporations. The Firm considers “Adjusted EBITDA” to be a related indicator for measuring developments in efficiency and its potential to generate funds to service its debt and to satisfy its future working capital and capital expenditure necessities. “Adjusted EBITDA” shouldn’t be a typically accepted earnings measure and shouldn’t be thought of in isolation or as an alternative choice to web revenue (loss), money flows or different measures of efficiency ready in accordance with IFRS. Adjusted EBITDA is extra totally outlined and mentioned, and reconciliation to IFRS monetary measures is offered, in Firm’s Administration’s Dialogue and Evaluation (“MD&A”) for the three-month and six-month interval ended September 30, 2024.
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About Bragg Gaming Group
Bragg Gaming Group ( NASDAQ: BRAG, TSX: BRAG) is an iGaming content material and turnkey know-how options supplier serving on-line and land-based gaming operators with its proprietary and unique content material, and cutting-edge know-how. Bragg Studios supply high-performing and passionately crafted on line casino sport titles utilizing the most recent in data-driven insights from in-house manufacturers together with Wild Streak Gaming, Atomic Slot Lab and Indigo Magic. Its proprietary content material portfolio is complemented by a cross part of unique titles from rigorously chosen studio companions underneath the Powered By Bragg program. Video games constructed on Bragg’s distant video games server (Bragg RGS) know-how are distributed through the Bragg Hub content material supply platform and can be found solely to Bragg prospects. Bragg’s versatile, fashionable, omnichannel Participant Account Administration (PAM) platform powers a number of main iCasino and sportsbook manufacturers and in any respect factors is supported by professional in-house managed, operational, and advertising providers. Content material delivered through the Bragg Hub both solely or from the Bragg aggregated video games portfolio is managed from a single back-office which is supported by highly effective knowledge analytics instruments, and Bragg’s award-winning Fuze™ participant engagement toolset. Bragg is licensed, licensed, authorised and operational in lots of regulated iCasino markets globally, together with the U.S, Canada, United Kingdom, Italy, the Netherlands, Germany, Sweden, Spain, Malta and Colombia.
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Monetary tables comply with:
|
BRAGG GAMING GROUP INC. |
||||||||||||||||
|
INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS |
||||||||||||||||
|
(In hundreds, besides share and per share quantities) |
||||||||||||||||
|
Three Months Ended September 30, |
9 Months Ended September 30, |
|||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||||
|
Income |
26,169 |
22,574 |
74,841 |
70,162 |
||||||||||||
|
Value of income |
(12,167 |
) |
(10,718 |
) |
(36,558 |
) |
(32,260 |
) |
||||||||
|
Gross Revenue |
14,002 |
11,856 |
38,283 |
37,902 |
||||||||||||
|
Promoting, common and administrative bills |
(14,829 |
) |
(13,047 |
) |
(40,918 |
) |
(38,035 |
) |
||||||||
|
Achieve (Loss) on remeasurement of by-product legal responsibility |
46 |
(82 |
) |
(94 |
) |
(261 |
) |
|||||||||
|
Achieve on settlement of convertible debt |
104 |
231 |
169 |
435 |
||||||||||||
|
Achieve (Loss) on remeasurement of deferred consideration |
271 |
(1,095 |
) |
(329 |
) |
(387 |
) |
|||||||||
|
Working Loss |
(406 |
) |
(2,137 |
) |
(2,889 |
) |
(346 |
) |
||||||||
|
Web curiosity expense and different financing prices |
(848 |
) |
(450 |
) |
(2,370 |
) |
(1,414 |
) |
||||||||
|
Loss Earlier than Revenue Taxes |
(1,254 |
) |
(2,587 |
) |
(5,259 |
) |
(1,760 |
) |
||||||||
|
Revenue taxes |
1,089 |
(364 |
) |
790 |
(1,290 |
) |
||||||||||
|
Web Loss |
(165 |
) |
(2,951 |
) |
(4,469 |
) |
(3,050 |
) |
||||||||
|
Gadgets to be reclassified to web loss: |
||||||||||||||||
|
Cumulative translation adjustment |
(1,002 |
) |
(611 |
) |
(998 |
) |
(1,754 |
) |
||||||||
|
Web Complete Loss |
(1,167 |
) |
(3,562 |
) |
(5,467 |
) |
(4,804 |
) |
||||||||
|
Fundamental Loss Per Share |
(0.01 |
) |
(0.13 |
) |
(0.19 |
) |
(0.14 |
) |
||||||||
|
Diluted Loss Per Share |
(0.01 |
) |
(0.13 |
) |
(0.19 |
) |
(0.14 |
) |
||||||||
|
Thousands and thousands |
Thousands and thousands |
Thousands and thousands |
Thousands and thousands |
|||||||||||||
|
Weighted common variety of shares – primary |
25.0 |
23.3 |
24.0 |
22.3 |
||||||||||||
|
Weighted common variety of shares – diluted |
25.0 |
23.3 |
24.0 |
22.3 |
||||||||||||
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|
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 |
|||||||
|
September 30, |
December 31, |
|||||||
|
2024 |
2023 |
|||||||
|
Money and money equivalents |
11,569 |
8,796 |
||||||
|
Commerce and different receivables |
18,650 |
18,641 |
||||||
|
Pay as you go bills and different belongings |
2,743 |
1,655 |
||||||
|
Complete Present Property |
32,962 |
29,092 |
||||||
|
Property and gear |
1,057 |
640 |
||||||
|
Proper-of-use belongings |
2,781 |
3,233 |
||||||
|
Intangible belongings |
34,769 |
38,133 |
||||||
|
Goodwill |
31,764 |
31,921 |
||||||
|
Different belongings |
314 |
348 |
||||||
|
Complete Property |
103,647 |
103,367 |
||||||
|
Commerce payables and different liabilities |
19,683 |
21,846 |
||||||
|
Revenue taxes payable |
1,260 |
917 |
||||||
|
Lease obligations on proper of use belongings |
722 |
709 |
||||||
|
Deferred consideration |
1,549 |
1,513 |
||||||
|
By-product legal responsibility |
— |
471 |
||||||
|
Convertible debt |
— |
2,445 |
||||||
|
Loans payable |
6,495 |
— |
||||||
|
Complete Present Liabilities |
29,709 |
27,901 |
||||||
|
Deferred revenue tax liabilities |
723 |
852 |
||||||
|
Lease obligations on proper of use belongings |
2,193 |
2,568 |
||||||
|
Deferred consideration |
— |
1,426 |
||||||
|
Different non-current liabilities |
373 |
373 |
||||||
|
Complete Liabilities |
32,998 |
33,120 |
||||||
|
Share capital |
131,706 |
120,015 |
||||||
|
Shares to be issued |
— |
3,491 |
||||||
|
Contributed surplus |
17,556 |
19,887 |
||||||
|
Accrued deficit |
(80,532 |
) |
(76,063 |
) |
||||
|
Accrued different complete revenue |
1,919 |
2,917 |
||||||
|
Complete Fairness |
70,649 |
70,247 |
||||||
|
Complete Liabilities and Fairness |
103,647 |
103,367 |
||||||
|
BRAGG GAMING GROUP INC. |
||||||||||||
|
UNAUDITED SELECTED FINANCIAL GAAP AND NON-GAAP MEASURES |
||||||||||||
|
(in hundreds) |
||||||||||||
|
Three Months Ended September 30, |
9 Months Ended September 30, |
|||||||||||
|
EUR 000 |
2024 |
2023 |
2024 |
2023 |
||||||||
|
Income |
26,169 |
22,574 |
74,841 |
70,162 |
||||||||
|
Working loss |
(406 |
) |
(2,137 |
) |
(2,889 |
) |
(346 |
) |
||||
|
EBITDA |
3,924 |
1,209 |
9,312 |
8,963 |
||||||||
|
Adjusted EBITDA |
4,083 |
3,814 |
11,109 |
12,450 |
||||||||
View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20241114956792/en/
Contacts
For media enquiries or interview requests, please contact:
Robert Simmons,
Head of Communications at Bragg Gaming Group
Traders:
James Carbonara
Hayden IR
+1 (646)-755-7412
james@haydenir.com
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