In This Article:
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bragg Gaming Group Inc (NASDAQ:BRAG) reported a 7.1% revenue growth in Q1 2025 compared to the same quarter last year, with a robust 27% growth excluding the Netherlands.
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The company demonstrated operational leverage and improved its product mix, leading to increased cash generation in Q1 2025.
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Bragg Gaming Group Inc (NASDAQ:BRAG) saw triple-digit growth in US GGR derived from its proprietary content, highlighting strong performance in the expanding US online casino market.
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The company launched its content in the newly regulated Brazilian iGaming market, expecting 10% of its revenue this year to come from the Latin American region.
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Bragg Gaming Group Inc (NASDAQ:BRAG) repaid $5 million of its $7 million secured credit note, while securing a new credit facility with improved terms to enhance financial flexibility.
Negative Points
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The Netherlands market has slowed due to regulatory pressures, resulting in a 19% decrease in revenue from this region compared to Q1 2024.
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Bragg Gaming Group Inc (NASDAQ:BRAG) faces challenges in the Netherlands due to regulatory changes such as deposit limits and increased gaming taxes.
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The company's overall top-line performance in Q1 2025 trails its Q4 run rate, consistent with seasonal patterns in the iCasino market.
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There is uncertainty regarding Bet City's potential migration to a proprietary tech stack, which could impact Bragg Gaming Group Inc (NASDAQ:BRAG)'s revenue.
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The company is exposed to legislative risks in new markets, such as Ohio, where the timeline for iCasino legalization remains uncertain.
Q & A Highlights
Q: Where are you seeing revenue strength outside of the Netherlands and Bet City headwinds, and what is causing the projected deceleration in PA revenue? A: We are seeing contraction in the Netherlands but good growth opportunities in Europe. We are particular about ensuring PA PAM opportunities are scalable to justify investment costs. Many operators are expanding outside their core markets without revamping their tech stacks, which positions us well to service that need. (Unidentified_4)
Q: How do you see the mix evolving from aggregated content to first-party content over the next 3-5 years, and what are the key levers for margin accretion? A: Aggregation provides a good entry point, but we aim to increase proprietary content flow. We expect to reach a 20% margin at full scale. Our development costs are decreasing while scaling, particularly in the US market, which is showing significant growth. Proprietary content resonates for a long time, and we expect margin accretive results to continue. (Unidentified_4)