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Bragg Gaming Group, a global B2B iGaming technology provider, released financial results for the first quarter of 2024, saying year-over-year revenue increased by 4.2%. More specifically, revenue increased to $25.6 million, compared to Q1 2023’s $24.6 million.
Compared to Bragg Gaming’s Q4 2023 earnings, the revenue slightly increased, reaching $25.2 million for that period.
Matevž Mazij, chief executive officer for Bragg, commented in the press release:
“We carried our strong momentum in 2023 into the first quarter, delivering robust growth that underscores the ongoing success of our efforts to transform Bragg into a content-focused iGaming solutions provider across expanding North American and European markets.”
Key takeaways:
- Bragg’s annual revenue increase was driven by organic growth from its current client base, the addition of new customers in multiple jurisdictions, and notable results from its in-house Wild Streak Gaming casino games studio.
- Standout Q1 2024 results include exclusively launched content in New Jersey and Michigan.
- In March, Bragg received a license in Peru to extend its footprint in Latin America.
- Bragg also emphasized recent business agreements.
Bragg Gaming’s first quarter 2024 financial highlights
The company’s gross profit decreased by 2.8% to $12.8 million from $13.1 million in Q1 2023, representing a gross profit margin of 49.9%. Bragg noted that gross profit margin reduction is primarily the result of increased revenue performance in all content products categories while recording slightly lower PAM and managed services revenues.
Furthermore, adjusted EBITDA was $3.7 million, a decrease of 12.4% compared to $4.2 million in Q1 2023. This represents an adjusted EBITDA margin of 14.3%, compared to 17.0% in Q1 2023.
Operational loss during the first quarter was $1.4 million, down $1.9 million from the same period last year, because of a reduction in gross profit alongside an increase in:
- Selling
- General and administrative expenses
- Loss on remeasurement of deferred consideration
Q1 2024 and recent business highlights
In Q1 2024, Bragg Gaming (NASDAQ: BRAG) kept expanding its already impressive US content portfolio.
In February, Bragg launched a new exclusive online content deal with Golden Nugget in Michigan, increasing distribution reach in the state. This agreement builds on Bragg’s existing collaboration with Golden Nugget.
In March, Bragg launched a second personalized online slots title for Caesars Digital, Boardwalk Slots Bankers & Cash, in two online casino states. The game went live on Caesars Palace Online Sportsbook & Casino in New Jersey and Michigan.
During the same month, Bragg received approval as an authorized service provider from the Peruvian Ministry of Foreign Trade and Tourism. This achievement allows the software supplier to offer online casino games through its Bragg Hub aggregation platform to Latin American operators.
Mazij explained the company’s recent accomplishments:
“Our proprietary and exclusive third-party content continues to gain ground with an increasing number of top-tier operators globally, and we introduced 19 new exclusive titles worldwide in the first quarter of 2024.
Additionally, as we continue to make encouraging progress on our strategic alternatives review process, it’s important to emphasize that we are operating the business as usual and remain laser-focused on capitalizing on growth opportunities.”
Bragg strikes a deal with Light & Wonder and has big plans for this year
The company’s Group Director of Content, Doug Fallon, recently talked to PlayUSA, sharing Bragg’s insights and plans.
In April, Bragg Gaming announced an international content distribution agreement with Light & Wonder (NASDAQ: LNW).
Robert Simmons, head of communications at Bragg Gaming Group, told PlayUSA that the partnership allows operators who utilize online casino content on an aggregate basis from Light & Wonder to access Bragg’s exclusive portfolio. That portfolio includes games from studios like Atomic Slot Lab, King Show Games, and Blueberi.
In the US, Bragg currently holds online casino licenses in New Jersey, Michigan, Pennsylvania and Connecticut. While talking to PlayUSA last week, Bragg revealed plans to expand to Delaware’s online casino market this year. The company also intends to expand its reach further. Fallon said:
“We’re also currently well advanced in the licensing process in Delaware, where we expect to launch later this year. In addition, we’re also looking at the West Virginia and Rhode Island markets as potential growth areas, but at the same time, we’re also keeping our eyes open for any new states that may come online this year.”
