Bragg Gaming's 2024 Financial Outlook and Strategic Growth Plans
Bragg Gaming Announces Preliminary Results for 2024 and Outlook for 2025
Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), a prominent player in the B2B iGaming sector, has shared its preliminary unaudited financial results for the year ended December 31, 2024. This release highlights the company’s strategic initiatives aimed at driving growth and enhancing profitability. Bragg is focusing on proprietary and exclusive content, aiming for double-digit growth in revenue and Adjusted EBITDA for 2025.
2024 Financial Highlights
The company anticipates its full-year 2024 results will show substantial growth. Revenue is projected to be at least EUR 102 million, marking a 9% increase from EUR 93.5 million in 2023. Additionally, Adjusted EBITDA is expected to reach a minimum of EUR 15.4 million, reflecting a slight increase from EUR 15.2 million the previous year.
Forecasted Growth for 2025
Looking ahead, Bragg Gaming offers guidance for 2025 that reflects ambitious targets. The company expects revenue to rise between EUR 117.5 million and EUR 123.0 million, showcasing significant growth relative to the preceding year's projections. Moreover, Adjusted EBITDA is expected to fall within the range of EUR 19.0 million to EUR 21.5 million, driven by a shift toward higher-margin product offerings.
Key Strategic Initiatives
Bragg Gaming’s anticipated success in 2025 will stem from several strategic initiatives, including:
Increased Revenue from Proprietary Content
Bragg aims to enhance its revenue concentration by increasing the share derived from proprietary and exclusive content. This will not only improve profit margins but also decrease reliance on third-party content by the end of the year.
Growth in Expanding Markets
North America and Brazil are critical markets where Bragg expects robust revenue growth. The company projects that its content-focused products will contribute up to 10% and 15% of revenue from these regions, respectively, by year-end.
Exploring Brazil's iGaming Potential
With a market value projected to exceed $3.3 billion by 2029, Brazil is a focal point for Bragg’s growth strategy. The company believes its exclusive content will enable significant market capture in this rapidly evolving iGaming landscape.
US Market Expansion
Bragg is well-positioned for expansion within the US market, leveraging its proprietary content portfolio. Through partnerships with leading operators such as DraftKings and Caesars, Bragg's offerings can reach a substantial portion of the US iGaming market, estimated to be over $9.5 billion. The leadership team, comprising industry veterans, is expected to enhance market penetration effectively.
Enhancing Presence in European Markets
Bragg seeks to solidify its presence in key European markets such as Italy, the UK, Spain, and Sweden. This is achievable through existing partnerships and targeted sales strategies designed to boost content distribution.
Innovating Technology and Player Engagement
Bragg continues to drive innovation with its technologies, such as FUZE™, enhancing player engagement without requiring additional integration from partners. Moreover, leveraging AI for data insights is crucial for improving player experiences and operator profitability.
Commitment to Shareholder Value
Bragg has initiated a Stock Appreciation Rights (SAR) plan for its executive team, aligning their interests with shareholders. This plan incentivizes executives to increase the company’s share price, thus fostering a focus on long-term value creation.
Management’s Perspective
“We are optimistic about our 2024 results and the promising growth trajectory laid out in our 2025 guidance,” stated Matevž Mazij, the CEO of Bragg. He emphasized that the company’s strategic investments in proprietary content and enhanced player engagement features will significantly drive revenue and profitability growth.
Frequently Asked Questions
What are Bragg Gaming's expected revenue figures for 2024?
Bragg Gaming expects to report at least EUR 102 million in revenue for 2024, indicating a 9% increase from the previous year.
How does Bragg Gaming plan to achieve growth in 2025?
The company aims for a revenue increase to between EUR 117.5 million and EUR 123.0 million, focusing on proprietary and exclusive content initiatives.
Which markets are targeted for growth?
Bragg is focusing on expanding in North America and Brazil, anticipating these markets to significantly boost overall revenue.
What is the significance of the Stock Appreciation Rights plan?
The SAR plan aligns executive compensation with shareholder interests by rewarding executives only when the company’s stock price increases.
What innovative technologies is Bragg adopting?
Bragg is leveraging technologies like FUZE™ and AI-driven insights to enhance player engagement and improve overall profitability.
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