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Bragg Gaming Group reached a revenue record for Q2 earnings of $26.6 million. This is a 0.5% increase from Bragg Gaming’s 2023 earnings when the figure was $26.4 million.
This result also shows an increase from Bragg Gaming’s Q1 2024 financials, which remitted revenue of $25.6 million. So overall, business is meeting expectations for the year thus far.
Key takeaways
- Bragg achieved record revenue despite a slight year-over-year increase.
- Profitability metrics like gross profit and adjusted EBITDA declined due to a shift in the product mix.
- The company is actively developing and launching higher-margin products like proprietary iGaming content, particularly in North America.
- It also expanding its US online casino presence through partnerships and aiming for 90% distribution coverage by year-end.
Bragg Gaming’s Q2 2024 gross profit, adjusted EBITDA met with dip
While Bragg Gaming (NASDAQ: BRAG) celebrated record revenue in the quarter, profitability faced challenges.
Gross profit reached approximately $13.2 million and adjusted EBITDA totaled $3.85 million. Both figures declined compared to the previous year.
However, there was a sequential improvement from the first quarter.
In a Bragg Gaming Group press release, CEO Matevž Mazij said the company experienced a decrease in gross profit and adjusted EBITDA compared to the previous year due to alterations in its product offerings:
“As expected, gross profit and adjusted EBITDA were down 10.3% and 23.8% year over year, respectively, as our product mix has changed.
However, I am encouraged by recent momentum for our higher-margin products, including for our proprietary iGaming content in North America, and from launches of new customers powered by Bragg’s Player Account Management (“PAM”) and turnkey solutions.
“I am also pleased with sequential growth in revenue (+4.4%), gross profit (+4.4%), and adjusted EBITDA (+6.0%) compared to the first quarter of the year, a timeframe during which our product mix has remained consistent.”
Bragg Gaming doubles down on US online casino expansion
Bragg continued its global push in the second quarter of 2024 as they launched a record-breaking 12 new games from their studios. This adds to the 17 total new titles released worldwide.
In an interview with PlayUSA, Bragg Gaming‘s Director of Content Doug Fallon said the company plans to “release more than 70 titles” from its “operational states from 8 different studios” this year.
The focus on in-house development aligns with their strategy of increasing the proportion of higher-margin proprietary solutions in their product mix.
Expansion plans aren’t limited to content creation, however, as it launched content with BetMGM in Pennsylvania. This is Bragg’s third state partnership with BetMGM, following successful launches in Michigan and New Jersey.
Hence, the company remains focused on strategic expansion. Particularly focused on the US and European markets, aiming for 90% US distribution coverage by year-end.
“We have taken decisive steps to bolster our leadership team, expand our presence in key markets worldwide, and make significant inroads in the US market.
With Bragg’s overall share of the U.S. iGaming content supplier market still estimated at below 1%, our expanding distribution in the United States, along with our extensive distribution reach in regulated markets globally, represents a huge upside opportunity for the Company, which is now licensed, certified or otherwise compliant with relevant local regulations in more than 30 jurisdictions.
In the U.S. we are pleased to be on track to more than double our wagering volume this year compared to 2023, and we look forward to continuing the trend into future years,” Mazij continued.
