Bragg Gaming Group Inc. Q1 FY2025 earnings call

• Q1 2025 saw 7.1% revenue growth; excluding Netherlands, growth was 27%. Resilient in Netherlands despite regulatory pressures, with strong growth in US and Brazil. - Demonstrated operational leverage, improved product mix with margin accretive revenue, and increased cash generation. - Key developments: launched content in Brazilian iGaming market on Jan 1, 2025; games development and remote game server tech agreement with Caesars Digital; Loto-Québec launch; investment in RapidPlay, a Brazilian casino content studio. - Financials: gross profit margin rose to 56% (up 612 basis points), adjusted EBITDA grew 19.7% to €4.1 million, operating cash flow €4.5 million (up 61%), and product mix shifted towards higher margin proprietary content.

Total revenue for Q1 2025 was €25.5 million, up 7% compared to Q1 2024. Excluding the Netherlands, revenue growth was 27%. Proprietary content revenue reached €3.9 million in Q1 2025, up 62% year-over-year, making up 15.5% of total revenue. PAM and turnkey solutions revenue was €5.2 million, 20.5% of total revenue. Aggregated third-party content declined to 45% of revenue, down 570 basis points year-over-year.

Management projected an 18% uptick in revenue to a midpoint of €120.25 million for 2025, and a 28% increase in adjusted EBITDA to a midpoint of €20.25 million. Bullish on the expanding U.S. online casino market, with potential from Ohio legalization, and optimistic about Brazil's iGaming market growth.

• Potential move by BetCity to its own proprietary tech stack, though impact is minimal due to business evolution. - Regulatory pressures in the Netherlands affecting exposure, with subscale competitors facing margin pressures. - Legislative risks in some markets, though positioned to capitalize on opportunities as regulations evolve.

Q: You called out BetCity headwinds but PAM revenue increased. Where are strengths in PAM outside Netherlands and cause of PAM guidance deceleration?

A: Robbie mentioned seeing opportunities in other European jurisdictions and PAM needs to be scalable; Matevz elaborated on jurisdictions like Finland, France, New Zealand, Canada, and Brazil.

Q: Elaborate on shift from aggregated to first-party content and mix evolution over 3-5 years?

A: Robbie stated aggregation is less strategic, with focus on proprietary content, expecting margin to reach 20% scale, and investment in U.S. market driving proprietary content growth.

Q: Performance in U.S. and Brazil, differences from past, and growth continuation?

A: Robbie said strategic investment in content titles and talent in U.S., with high growth in U.S. GGR from Bragg's content; Matevz was optimistic about Brazil, trending top of market with integrations and RapidPlay investment.

Q: Brazil revenue generation in Q1, client onboarding, and Ohio live timeline?

A: Robbie said scaled integrations with good day-one amounts but B2C operators started slower; legal advisors suggest Ohio could go live as early as March 31, 2026.

Q: BetCity deal renewal, migration potential, and new credit facility collateral?

A: BetCity deal expires Dec 31, 2025; new credit facility will be secured against accounts receivable.

Q: Brazil B2B coverage and contribution upside beyond 10%?

A: Robbie thinks Brazil could outperform, with 50%+ coverage via RapidPlay partnership.

Q: 2025 guidance confidence on sequential growth from Q1's €25.5M?

A: Robbie noted Q1 is historically light, with opportunities in Brazil, U.S. pipeline, and European regulatory changes boosting trajectory.