Bragg Gaming Group Inc. (NASDAQ:BRAG) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals a mixed yet overall positive outlook. Strong financial metrics, including a 7% revenue growth and a 19.7% increase in adjusted EBITDA, are complemented by optimistic future guidance. Despite regulatory and competitive pressures in the Netherlands, the company's strategic expansion in North America and Brazil, along with growth in proprietary content, are promising. The lack of a share repurchase program is a neutral factor. Overall, the positive financial performance and strategic initiatives outweigh the risks, suggesting a likely stock price increase of 2% to 8%.
Key Financial Performance
Total Revenue €25.5 million, up 7% compared to Q1 2024. Excluding the Netherlands, revenue growth was 27%.
Gross Profit Margin 56%, up 612 basis points compared to Q1 2024.
Adjusted EBITDA €4.1 million, up 19.7% compared to Q1 2024. Adjusted EBITDA margin was 16%, 169 basis points higher than the same period last year.
Operating Cash Flow €4.5 million, a 61% increase from €2.8 million generated in Q1 2024.
Adjusted EBITDA less Capitalized Development Costs €1.4 million, up 49% compared to Q1 2024 with a conversion ratio of 34%.
Free Cash Flow €0.9 million, excluding non-recurring exceptional items and FX-related impacts.
Revenue from Proprietary Content €3.9 million, up 62% year-over-year from €2.5 million in Q1 2024.
Revenue from PAM and Turnkey Solutions €5.2 million, or 20.5% of total revenue, up from 18.5% a year ago.
Cash and Cash Equivalents €10.8 million as of March 31, 2025.
BetCity Revenue Contribution Projected to drop from 42% of total revenue in 2022 to 16% in 2025.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New Product Launches: The first game to launch under the partnership with Caesars Digital, Caesars Palace’s signature multi-hand Blackjack Surrender, was released this week.
Proprietary Content Growth: Revenue from proprietary content grew 62% year-over-year to €3.9 million, up from €2.5 million in Q1 2024.
Market Expansion in Brazil: On January 1, 2025, Bragg launched its content in the newly regulated Brazilian iGaming market, expecting 10% of revenue this year to come from the LATAM region.
U.S. Market Growth: Bragg saw triple-digit growth in U.S. GGR derived from proprietary content, with a 338% increase in GGR generated in U.S. iGaming states.
Operational Efficiency: Adjusted EBITDA grew by 19.7% to €4.1 million in Q1 2025 compared to Q1 2024.
Cash Generation: Generated €4.5 million in operating cash during Q1 2025, a 61% increase from €2.8 million in Q1 2024.
Strategic Shift in Customer Base: BetCity's contribution to total revenue is projected to drop from 42% in 2022 to 16% in 2025, indicating a shift in customer reliance.
Investment in Localized Content: Bragg invested in RapidPlay, a Brazilian casino content studio, to enhance its localized games portfolio.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Pressures: The Netherlands market has slowed due to regulatory pressures, including deposit limits and increased gaming taxes, which have negatively impacted revenue by 19% compared to Q1 2024.
Competitive Pressures: Bragg is facing increasing competition in the iGaming market, particularly as operators in the Netherlands are pressured by rising margin challenges, which could force subscale competitors out.
Supply Chain Challenges: The company is reducing its exposure to the Netherlands market, which has been a significant source of revenue, indicating potential supply chain challenges in maintaining revenue streams.
Economic Factors: The overall economic environment and regulatory changes in various markets, including the U.S. and LATAM, could impact Bragg's growth trajectory and revenue generation.
Customer Dependency: Bragg's reliance on BetCity, which is projected to contribute only 16% of total revenue in 2025, indicates a shift in customer dependency that could affect revenue stability.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Growth: In Q1 2025, Bragg reported a 7.1% revenue growth compared to the same quarter last year, with a robust 27% growth excluding the Netherlands.
Market Expansion: Bragg launched its content in the newly regulated Brazilian iGaming market on January 1, 2025, expecting 10% of revenue this year to come from LATAM.
Partnerships: Bragg announced a games development and remote game server technology agreement with Caesars Digital, launching the first game, Caesars Palace’s multi-hand Blackjack Surrender.
Proprietary Content: Proprietary content reached a record 15.5% of total revenue, with a 62% year-over-year growth to €3.9 million.
Debt Management: Bragg repaid $5 million of its $7 million secured credit note and extended the repayment of the remaining $2 million until June 2025.
2025 Revenue Guidance: Bragg projects an 18% increase in revenue to a midpoint of €120.25 million for 2025.
2025 Adjusted EBITDA Guidance: Bragg anticipates a 28% increase in adjusted EBITDA to a midpoint of €20.25 million for 2025.
U.S. Market Potential: The U.S. online casino market is projected to grow to over U.S. $75 billion at maturity, with Bragg positioned to capitalize on this growth.
Cash Flow: Bragg generated €4.5 million in operating cash during Q1 2025, a 61% increase from Q1 2024.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Program: Bragg Gaming Group has not announced any share repurchase program during the Q1 2025 earnings call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Where are you seeing the strengths in PAM revenue outside of the Netherlands in the BetCity headwinds?
A:We are seeing good growth and opportunities coming across our pipeline to roll out our PAM in other jurisdictions in Europe, particularly in Finland, France, and New Zealand.
Q:Your PAM guidance of flat for the year implies a pretty material deceleration. What are you seeing outside of the Netherlands in BetCity that would cause that?
A:We are being very particular about ensuring PAM opportunities are scalable to justify the cost of investment, but we are pleased with the interest from operators looking to expand.
Q:How do you look to get opportunistic utilizing that cash once the final debt facility is in place?
A:We are looking for strategic investments to enhance our business, similar to our partnership with RapidPlay.
Q:Can you expand on the ongoing shift from aggregated content over to first party?
A:We want to move away from aggregation being strategic for us and focus on proprietary content, which we believe will lead to margin accretion.
Q:What is the addressable market for the Fuse engagement capabilities?
A:Fuse fits into the tech stack of Tier-2 and Tier-3 operators who lack sophisticated tools for engagement and retention.
Q:Are you doing anything differently in the U.S. market today than in years past?
A:We are rolling out a higher cadence of content titles and have brought in talent to accelerate that.
Q:How big do you hope the Brazilian market gets for you in terms of market share?
A:We are optimistic about Brazil but cannot specify market share at this time.
Q:Did you have all your clients on board right away in Brazil?
A:We had good amounts on day one, but there was some sluggishness in the market.
Q:When do you expect Ohio to go live?
A:Could be as early as March 31, 2026, but there is legislative risk.
Q:What about the potential for BetCity to move to another tech stack?
A:We do not have a date for that decision, and it is not a significant concern for us.
Q:What do you expect the lender to use as security for the new credit facility?
A:It will be our accounts receivable.
Q:Is there a near-term opportunity to strike similar deals like the one you signed with Caesars?
A:Yes, there is a desire for operators to have bespoke content, and we are in discussions for similar development work.
Q:Review of Unclear Management Responses
A:Management did not provide a specific timeline for when Entain would make a decision regarding BetCity's potential migration to another tech stack.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI player
America concentration
Bragg Gaming
Bragg Netherlands
Bragg casino
Bragg development
Bragg focus
Bragg resilience
Bragg result
Brazil shareholder
CEO Bragg
CEO credit
Caesars Palace
Caesars house
Chair service
Creative launch
Digital value
Empire Creative
Europe Bragg
FX impact
GGR Bragg
Gaming Bragg
Group expectation
Netherlands market
Ohio
Transcript name
cash generation
content margin
experience Bragg
financials Bragg
game development
house game
increase Bragg
leverage product
line cash
name Bragg
opportunity Bragg
pressure
product mix
question Bragg
trend
BRAG Transcript
Bragg Gaming Group Inc. (BRAG:CA) Q3 2025 Earnings Call Transcript
Positive11-13
The earnings call reflects a positive sentiment with strong growth in proprietary content, particularly in the U.S. and Brazil, leading to improved margins and profitability. Despite challenges in the Netherlands, the company's successful diversification strategy is evident with significant revenue growth outside this market. The Q&A session reinforced the positive outlook with expectations of continued margin improvement and operational efficiencies. However, potential risks in new markets and the upcoming BetCity migration pose challenges. Overall, the positive elements outweigh the negatives, suggesting a positive stock price movement.
Bragg Gaming Group Inc. (BRAG) Q2 2025 Earnings Call Transcript
Unknown8-14
The earnings call presents a mixed picture. Strong revenue growth, especially in the U.S. and Brazil, and strategic partnerships are positives. However, regulatory challenges in the Netherlands, increased gaming taxes, and a decline in adjusted EBITDA pose risks. The Q&A session confirmed management's optimism but did not alleviate concerns about execution risks and financial uncertainties. Overall, the sentiment is neutral, as positives are balanced by significant challenges.
Bragg Gaming Group Inc. (NASDAQ:BRAG) Q1 2025 Earnings Call Transcript
Positive5-16
The earnings call reveals a mixed yet overall positive outlook. Strong financial metrics, including a 7% revenue growth and a 19.7% increase in adjusted EBITDA, are complemented by optimistic future guidance. Despite regulatory and competitive pressures in the Netherlands, the company's strategic expansion in North America and Brazil, along with growth in proprietary content, are promising. The lack of a share repurchase program is a neutral factor. Overall, the positive financial performance and strategic initiatives outweigh the risks, suggesting a likely stock price increase of 2% to 8%.
Bragg Gaming Group Inc. (BRAG) Q1 2025 Earnings Call Transcript
Positive5-15
The earnings call summary reveals strong financial performance with revenue and EBITDA growth, alongside optimistic guidance for 2025. The company is expanding in new markets like Brazil and the U.S., which are expected to contribute significantly to future revenue. Management's focus on proprietary content with higher margins is positive. Despite some operational challenges and economic concerns, there are strategic partnerships and growth opportunities. The Q&A section supports these insights, with analysts showing interest in strategic investments and market expansion. Overall, the sentiment is positive, likely leading to a stock price increase.
BRAG Slides
BRAG Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
