Bragg Gaming projects revenue growth in 2025

TORONTO - Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG), a provider of B2B iGaming content and technology solutions with a market capitalization of $106.43 million, has released its preliminary unaudited results for the year ended December 31, 2024, and provided financial guidance for 2025. The company anticipates a revenue increase of at least 9% for 2024, reaching EUR 102 million, up from EUR 93.5 million in 2023. Adjusted EBITDA is expected to grow by 1%, achieving not less than EUR 15.4 million, compared to EUR 15.2 million for the previous year. According to InvestingPro analysis, the company currently trades below its Fair Value, suggesting potential upside opportunity for investors.

Looking ahead, Bragg Gaming has issued guidance for 2025, forecasting revenue to be in the range of EUR 117.5 million to EUR 123.0 million, which would signify double-digit growth from the anticipated 2024 revenue. Adjusted EBITDA for 2025 is projected to be between EUR 19.0 million and EUR 21.5 million, supported by a strategic shift toward higher-margin product offerings.

The company attributes its optimistic outlook for 2025 to several strategic initiatives. A key driver is the increased revenue concentration from Bragg’s proprietary and exclusive content, which is expected to enhance profitability and reduce dependency on third-party content revenue by year-end. With a healthy gross profit margin of 51.24% and maintaining more cash than debt on its balance sheet, as highlighted by InvestingPro, the company appears well-positioned for expansion. Growth in crucial markets, including North America and Brazil, is also anticipated to contribute significantly to revenue, with projections that these regions could account for up to 10% and 15% of revenue, respectively, by the end of the year.

Bragg’s strategic positioning in the Brazilian iGaming market, which is projected to more than double by 2029, and its penetration in the US market through partnerships with top-tier operators, are seen as pivotal to the company’s growth. The company also plans to expand content distribution in major European markets and increase exclusive partnerships to enhance its content release cadence, particularly in North America.

The company’s PAM business is expected to remain stable despite regulatory changes in the Netherlands. Bragg continues to innovate with technologies like FUZE™, which enhances player experience and contributes to product portfolio revenue growth. Data and AI optimizations are also being utilized to elevate player experiences and operator profitability.

Bragg has introduced a new Stock Appreciation Rights plan for its executive management team, aligning management interests with shareholder value. The SAR plan is contingent on the company’s share price increase and includes provisions for a change of control.

The company’s CEO, Matevž Mazij, expressed confidence in the 2024 results and the growth trajectory for 2025, citing strategic investments in proprietary content and enhanced engagement features as key growth drivers. While the stock has shown strong momentum with a 14.32% year-to-date return, InvestingPro subscribers have access to additional valuable insights, including 6 more ProTips and comprehensive financial analysis through the Pro Research Report, helping investors make more informed decisions about this emerging gaming technology company.

Investors are cautioned that the 2024 figures are preliminary and subject to change as the financial results are finalized. The information provided is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected.

In other recent news, Bragg Gaming Group has reported robust Q3 earnings, revealing a 16% increase in year-over-year revenue, and a gross profit increase of 18% to EUR 14 million. The company also announced significant growth in the U.S. market, with a 40% increase in proprietary content revenue. Financial analysis firm, Benchmark, adjusted their stock price target for Bragg Gaming from $8.00 to $4.00, while maintaining a Speculative Buy rating. This adjustment followed the conclusion of a strategic review by Bragg Gaming, which led to the removal of the acquisition premium consideration from the company’s valuation.

Bragg Gaming has also inked a technology platform and game development partnership with Caesars (NASDAQ:CZR) Entertainment, targeting the U.S. and Canada markets. This partnership upgrades Bragg’s role from a content supplier to a technology partner and is expected to drive double-digit growth in Bragg’s revenue and profitability in 2025.

In other developments, Bragg Gaming’s management team has shown strong confidence in the company’s value through significant insider share purchases. These recent developments reflect Bragg Gaming Group’s focus on key markets in the U.S., Canada, Latin America, and Europe, and its plans for expansion into emerging markets. The company’s revenue guidance is set at EUR 102 million to EUR 109 million, with adjusted EBITDA expected to be between EUR 15.2 million and EUR 18.5 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.