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What were the key takeaways from Bragg Gaming Group’s earnings call?

- **Revenue Growth**: 20% YoY growth in non-Netherlands markets, driven by U.S. (86% YoY) and Brazil (80% YoY). Proprietary content revenue up 35% YoY.
- **Financial Strength**: 9% YoY EBITDA growth to EUR 4.4 million, supported by new BMO credit facility. 2025 guidance maintained: EUR 106-108.5M revenue, EUR 16.5-18.5M EBITDA.
- **Strategic Focus**: 2026 priorities include U.S. iCasino expansion, Brazil margin optimization, and Finland market entry. BetCity migration expected to have minimal EBITDA impact.
- **Margin Expansion**: Proprietary content now 16% of revenue, with 70% of its revenue from pre-2025 games, demonstrating long-term IP value.

**【CEO Opening Remarks】**
- **Revenue Growth**: Total revenue grew 2% YoY to EUR 26.8 million, with non-Netherlands revenue up 20% YoY. U.S. and Brazil contributed 22% of total revenue, up from 12% a year ago.
- **Proprietary Content Dominance**: Proprietary content revenue rose 35% YoY, accounting for 16% of total revenue. U.S. market generated half of proprietary content revenue, driven by 35 new game launches this year.
- **Market Dynamics**: Netherlands revenue declined 22% YoY due to regulatory challenges, but Bragg maintains 30% market share. Brazil saw 80% YoY growth, targeting 10% of full-year revenue from this market.
- **Long-Term Vision**: Projected 68% of 2025 revenue from non-Netherlands markets, up from 51% in 2022. 2026 outlook includes expansion into Finland's regulated market (Q1 2027 launch).

**【CFO Financial Commentary】**
- **Financial Highlights**: Gross profit increased 5% YoY to EUR 14.7 million (54.7% gross margin), with adjusted EBITDA up 9% to EUR 4.4 million (16.6% margin). New BMO credit facility lowers borrowing costs and enhances liquidity.
- **Cost Optimization**: Operational efficiency initiatives reduced SG&A expenses, supporting 2026 margin expansion. BetCity migration (H1 2026) expected to have minimal EBITDA impact due to margin profile.
- **Guidance**: Full-year 2025 revenue guidance of EUR 106-108.5 million, adjusted EBITDA of EUR 16.5-18.5 million.

**【Q&A Highlights】**
- **Growth Drivers**: U.S. iCasino market set to grow 26% CAGR to 2030. Brazil aggregation strategy transitioning to higher-margin proprietary content. Finland market entry planned for 2027.
- **Cost Structure**: 2026 focus on process optimization and operational leverage. SG&A reductions and resource reallocation from BetCity migration to support margin growth.
- **Balance Sheet**: BMO facility provides liquidity for high-margin initiatives. 2026 priorities include cash flow generation and margin improvement through proprietary content expansion.
- **Shareholder Value**: Long-term strategy emphasizes market diversification, proprietary IP monetization, and operational efficiency to drive sustainable growth.

Bragg Gaming Group Inc (BRAG) Q3 2025 Earnings Call Transcript

- **Revenue resilience**: €26.1 million (+4.9% YoY), with 270% U.S. GGR growth offsetting Netherlands decline.
- **Margin focus**: Gross margin 52.7%, EBITDA €3.5 million, targeting H2 margin expansion.
- **AI transformation**: €2 million annual cost savings, 2027 AI-first vision to drive hyper-personalization.
- **Market expansion**: Brazil (+56% YoY), U.S. proprietary content at 14.8% of revenue, targeting 15% in 2025.
- **Strategic hires**: Scott Milford and Luka Pataky to accelerate content and AI innovation.

**【CEO Summary Section】**
- Q2 2025 revenue: $26.1 million (+4.9% YoY), with 21% growth excluding the Netherlands. U.S. proprietary content GGR up 270% YoY.
- Gross profit margin improved to 52.7% (vs. 49.9% in Q2 2024), driven by margin-focused strategy.
- Adjusted EBITDA: €3.5 million (-4.3% YoY), reflecting higher compensation costs. Target EBITDA margin expansion in H2 2025.
- Strategic shift: reducing reliance on Netherlands (32% of 2025 revenue vs. 49% in 2022), expanding U.S. and Brazil markets.
- AI-first initiative: aiming to embed AI into all products by 2027, with new EVP of AI, Luka Pataky.
- Proprietary content revenue: €3.9 million (+44% YoY), with 50% from pre-2024 titles, highlighting long-term value.
- New hires: Scott Milford (EVP, Content) and Luka Pataky (EVP, AI) to drive innovation.

**【CFO Financial Commentary】**
- Q2 2025 financials: Revenue €26.1 million, gross profit €13.7 million (+10.8% YoY), adjusted EBITDA €3.5 million.
- Product mix: Proprietary content at 14.8% of revenue (vs. 10.8% YoY), exclusive content at 21%.
- Balance sheet: €4.2 million cash, repaid €5 million of debt, seeking new revolving credit facility.
- Revised guidance: €106-108.5 million revenue, €16.5-18.5 million EBITDA, reflecting higher taxes and market softness.
- Focus on margin-accretive growth: EBITDA margin expected to improve in H2 2025.

**【Q&A Highlights】**
- U.S. market momentum: Hard Rock and Caesars deals driving 64% YoY growth in proprietary content. CEO confident in reaching 15% of revenue from proprietary content in 2025.
- Growth opportunities: Expanding into traditional stepper markets (Canada/North America), Brazil (56% YoY growth), and leveraging AI for hyper-personalization.
- FX impact: Minor weakening of euro affecting guidance, but not material.
- Risk management: Diversifying revenue streams to reduce reliance on high-tax markets like Netherlands, Brazil, and Romania.
- Synergy realization: €2 million annualized cost savings post-Q2, with further opportunities in H2 2025.

Bragg Gaming Group Inc. (BRAG) Q2 2025 Earnings Call Transcript

- **U.S. Growth Acceleration**: Proprietary content GGR up 338% YoY, outpacing 25% U.S. market expansion.
- **Brazil Momentum**: 10% of 2025 revenue target achieved in Q1, with RapidPlay studio enhancing local content pipeline.
- **Margin Improvement**: Proprietary content mix at 15.5% (vs. 9.5% in Q1 2024), driving 16% EBITDA margin.
- **Debt Management**: €5M debt repayment completed, new credit facility to reduce borrowing costs.
- **BetCity De-Risking**: Contribution dropping to 16% of revenue in 2025 (from 42% in 2022), with migration risk deferred to 2026+.

**【CEO Summary Section】**
- Q1 2025 revenue grew 7.1% YoY to €25.5 million, with 27% growth excluding the Netherlands market.
- U.S. proprietary content GGR surged 338% YoY, driven by hits like Dragon Power Triple Gold.
- Brazil market launch achieved 10% of 2025 revenue target, with RapidPlay studio investment enhancing local content.
- BetCity revenue contribution projected to drop to 16% in 2025, down from 42% in 2022, as focus shifts to high-margin U.S. and LATAM markets.

**【CFO Financial Commentary】**
- Adjusted EBITDA rose 19.7% YoY to €4.1 million, with margin improving 169bps to 16%.
- Operating cash flow increased 61% YoY to €4.5 million, driven by proprietary content mix (15.5% of revenue, up from 9.5% in Q1 2024).
- €5 million debt repayment completed, with remaining €2 million due in Q2 2025 under new lower-cost credit facility.
- Free cash flow of €0.9 million highlights improving cash generation from margin-focused strategy.

**【Q&A Key Highlights】**
- **U.S. Market Expansion**: Ohio iCasino legalization could add $2B to U.S. market, with Bragg already integrated with top operators (DraftKings, FanDuel, etc.).
- **Brazil Growth**: Q1 Brazil revenue exceeded expectations, with RapidPlay studio set to launch culturally tailored content in Q2.
- **PAM Strategy**: Shifting focus to high-margin platform solutions (20.5% of revenue) vs. aggregated third-party content (45% of revenue, down 570bps YoY).
- **BetCity Risk Mitigation**: 80% of 2025 BetCity revenue will come from low-margin aggregation, with migration to proprietary tech stack unlikely before 2026.


Bragg Gaming Group Inc. (BRAG) Q1 2025 Earnings Call Transcript

- **North America Dominance**: U.S. iGaming revenue target of 15% in 2025, up from 5% in 2024, driven by proprietary content like Dragon Power Triple Gold (1.4x prior title performance).
- **Brazil Breakthrough**: 30%+ operator coverage at launch, targeting 50%+ by Q2 and 10% of 2025 revenue from Brazil's $3.3B 2029 market.
- **Financial Strength**: Q4 2024 gross margin 58%, with 2025 adjusted EBITDA guidance of €19M-€21.5M (28% YoY growth).
- **Growth Catalysts**: PAM adoption (24% Q4 2024 revenue), Caesars technology licensing, and 59% CAGR in proprietary content since 2021.
- **Risk Management**: No material impact expected from Dutch sports betting advertising regulation, with focus on iCasino market share expansion.


**【CEO Operational Highlights】**
- **North America Expansion**: Q1 2025 proprietary content wagering up 100% YoY, with Dragon Power Triple Gold generating 1.4x higher initial performance than any prior title. U.S. iGaming market penetration now 90% of $8B addressable revenue, targeting 15% of total 2025 revenue from U.S. operations.
- **Brazil Market Entry**: Launched proprietary content on 30%+ of licensed operators as of Q1, with >50% coverage expected by Q2. Brazil's iGaming market projected to grow from $1.5B in 2025 to $3.3B by 2029, with Bragg targeting 10% of 2025 revenue from this market.
- **Strategic Partnerships**: Expanded Caesars partnership includes RGS technology licensing and potential Bragg Hub adoption, alongside exclusive content distribution deals with DraftKings, BetMGM, and others.
- **Technology Innovation**: Accelerating adoption of Bragg's PAM (Player Account Management) solution in Europe (6+ clients) and North America, with 24% of Q4 2024 revenue derived from PAM and turnkey solutions.

**【CFO Financial Summary】**
- **Q4 2024 Results**: 
  - Revenue: €27.2M (16% YoY growth)
  - Gross Profit: €15.8M (31% YoY growth), Margin: 58% (650bps YoY improvement)
  - Adjusted EBITDA: €4.7M (68% YoY growth), Margin: 17% (530bps YoY improvement)
- **Full Year 2024**: 
  - Revenue: €102M (9% YoY growth)
  - Adjusted EBITDA: €15.8M (4% YoY growth)
- **2025 Guidance**: 
  - Revenue: €117.5M-€123M (18% YoY growth)
  - Adjusted EBITDA: €19M-€21.5M (28% YoY growth)
- **Balance Sheet**: €10.5M cash as of Q4, with remaining debt refinancing planned for April 2025.

**【Q&A Key Takeaways】**
- **U.S. Market Growth**: 15% of 2025 revenue target driven by proprietary content (e.g., Dragon Power Triple Gold) and Caesars partnership, not M&A.
- **Brazil Execution**: Focused on content distribution rather than PAM in 2025, with 10%+ revenue contribution expected.
- **Gross Margin Outlook**: Q4 2024 margin of 58% unsustainable, but 2025 margin expansion expected via higher proprietary content mix (13.3% of Q4 2024 revenue vs. 45% from third-party content).
- **Expenditure Plan**: Capital spending on PP&E and intangibles to remain stable, with one-time content certification costs offset by top-line growth.
- **Pipeline Upside**: Organic opportunities in Brazil, U.S., and Europe exceed current guidance, with potential for accelerated adoption of Bragg's technology stack in new jurisdictions.


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