Bragg Gaming Group, Inc. Q4 FY2024 earnings call

• Added experienced executives to the team, including Chief Human Resources Officer, Chief Commercial Officer, etc.
• Expanded North American market penetration, launching in multiple U.S. states and with key partners like DraftKings and Fanatics.
• Strategic partnerships, e.g., content development and technology leasing agreement with Caesars Entertainment.
• Strengthened position in the Netherlands with Sportsbook launches and added PAM customers.
• Announced insider share purchases and new stock appreciation rights incentive plan.
• Launched in the Brazilian regulated iGaming market on January 1, 2025, and expanded Canadian footprint to Quebec.
• Proprietary content production ramped up, with Dragon Power Triple Gold performing exceptionally well.
• Licensed in key U.S. iGaming states, with plans to launch in West Virginia in Q2 2025.

For the fourth quarter of 2024, total revenue was EUR27.2 million, a 16% increase from Q4 2023. Gross profits grew by 31% to EUR15.8 million with a gross profit margin of 58%. Adjusted EBITDA grew by 68% to EUR4.7 million. For the full year 2024, total revenue was EUR102 million, up 9% from 2023. Gross profits grew by 8% to EUR54 million with a gross margin of 53%. Proprietary content accounted for 13.3% of Q4 revenue. PAM and turnkey solutions made up 24% of Q4 revenue, while aggregated third-party content was 45% of total revenue in Q4 2024.

• 2025 revenue projected between EUR117.5 million and EUR123 million, adjusted EBITDA between EUR19 million and EUR21.5 million.
• U.S. iGaming market expected to account for 15% of total revenue in 2025.
• In Brazil, content-based agreements with over 30% of licensed operators, aiming to reach 50% by end of Q2 2025.
• Expect Q4 2025 to have gross margin performance moving towards strong levels seen in Q4 2024.

• Regulatory changes in the Netherlands, particularly regarding sports betting advertising, which could impact the market though primarily affecting sports betting not iCasino.
• Debt refinancing risk with the remaining USD7 million secured promissory note maturing in April 2025.

Q: Could you confirm the growth in the U.S. market for 2025 and the role of Caesars?

A: Caesars is part of the growth, but a big chunk of growth will come from exclusive and proprietary content like Dragon Power Triple Gold.

Q: What's the status of Brazil's licensed operators using Bragg's content?

A: Currently over 30% of licensed operators, expecting to reach 50% by end of Q2 2025, focused on content rollout.

Q: Impact of Netherlands regulatory environment on the market?

A: Sports betting advertising impact likely not significant to Bragg's iCasino focus, market decrease built into assumptions but opportunities to increase market share over time.

Q: PP&E and intangibles spend in 2025?

A: Expected to stay relatively consistent, with one-time certification costs for new content rollouts.

Q: On gross margin, any short-term or longer-term targets?

A: Q4 2024 was exceptional, but directionally moving towards strong margins, waiting to see performance of proprietary content like Dragon Power Triple Gold.

Q: Status of pipeline opportunities, including M&A and U.S. states?

A: Pipeline is organic, focused on scaling existing products, not core focus on M&A currently; U.S. states opening up are part of strategic positioning to capitalize on market growth.