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Bragg Gaming Group Inc (TSE:BRAG)
:BRAG
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Bragg Gaming Group Inc
(TSX:BRAG)
74Outperform
Positive Factors
Financial Performance
Bragg delivered record Q4 2024 revenue of €27.2M ($28.8M), reflecting a 16.3% YoY increase, with gross profit increasing 30.9%, marking the fourth consecutive quarter of sequential revenue and AEBITDA growth.
Market Expansion
The expansion of Bragg’s U.S. footprint through elite operator partnerships enables access to over 90% of the country’s iGaming market, positioning the company for sustained revenue growth.
Partnerships and Market Opportunities
Expansion with major U.S. operators, including Caesars, DraftKings, and Fanatics, strengthens Bragg’s market position, while Brazil’s fast-growing iGaming sector presents a significant long-term opportunity.
Negative Factors
Market Challenges
Continued headwinds in the Dutch market contributed to a decline in revenue from this region.
Bragg Gaming Group Inc (BRAG) vs. S&P 500 (SPY)
Market Cap
C$153.67M
Dividend YieldN/A
Average Volume (3M)18.23K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth7.29%
EPS Growth-31.64%
CountryCA
Employees502
SectorCommunication Services
Sector Strength76
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.32
Shares Outstanding25,067,982
10 Day Avg. Volume12,525
30 Day Avg. Volume18,232
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.99
Price to Cash Flow (P/CF)3.80
P/FCF Ratio5.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$10.52Price Target Upside71.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Bragg Gaming Group Inc Business Overview & Revenue Model
Company DescriptionBragg Gaming Group Inc. (BRAG) is a global gaming technology and content group that provides business-to-business (B2B) services to the gaming industry. The company specializes in the development and distribution of cutting-edge online gaming content, platforms, and solutions that cater to operators in regulated markets. Bragg Gaming operates through its subsidiaries, including ORYX Gaming and Wild Streak Gaming, offering a diverse portfolio of casino games, player engagement tools, and data-driven insights to enhance the gaming experience.
How the Company Makes MoneyBragg Gaming Group Inc. generates revenue primarily through its B2B operations, by providing gaming content and platforms to online casino operators. The company's key revenue streams include licensing fees from its proprietary and third-party gaming content, platform service fees, and player engagement tools that enhance user experiences for operators. Additionally, Bragg Gaming benefits from strategic partnerships and collaborations with other gaming companies, which expand its distribution network and market reach, thereby contributing to its earnings. The company focuses on regulated markets to ensure compliance and sustainable growth, which is a significant factor in its revenue generation.
Bragg Gaming Group Inc Financial Statement Overview
Summary
Bragg Gaming Group Inc demonstrates growth in revenue and operational cash flow, indicating a positive trajectory. However, profitability challenges persist with continued net losses affecting net profit margins and return on equity. The balance sheet remains robust with low leverage and strong equity ratios, mitigating some financial risks.Income Statement
The company shows consistent revenue growth, with a 5% increase in TTM. Gross profit margin remains stable at around 51%, indicating strong cost management. However, the net profit margin is negative, reflecting continued net losses, which is a concern despite improving EBITDA margin to 14.2%. EBIT margin is negative, which affects overall profitability.68
Positive
Balance Sheet
The company has a solid equity position with a high equity ratio of 68.2%, indicating strong financial stability. The debt-to-equity ratio is low at 0.13, suggesting manageable leverage. However, consistent net losses impact return on equity, which remains negative.75
Positive
Cash Flow
Operating cash flow has improved significantly, with a strong cash flow to net income ratio of -2.66, indicating better cash generation relative to net losses. Free cash flow remains modest but stable. However, the free cash flow growth rate is slightly negative from the previous year.72
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 98.20M | 93.52M | 84.73M | 58.32M | 46.42M | 26.59M | Gross Profit |
| 50.32M | 49.94M | 45.08M | 28.32M | 20.19M | 12.03M | EBIT |
| -3.32M | -777.00K | -115.00K | -4.50M | 655.00K | -2.29M | EBITDA |
| 13.94M | 12.36M | 8.34M | -1.64M | -9.02M | -201.00K | Net Income Common Stockholders |
| -5.25M | -3.84M | -3.48M | -7.51M | -14.48M | -10.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.50M | 8.80M | 11.29M | 16.01M | 26.10M | 682.00K | Total Assets |
| 45.45M | 103.37M | 104.39M | 83.39M | 72.09M | 43.88M | Total Debt |
| 375.64K | 3.28M | 7.39M | 600.00K | 726.00K | 859.00K | Net Debt |
| -5.13M | -5.52M | -3.89M | -15.41M | -25.38M | 177.00K | Total Liabilities |
| 28.92M | 33.12M | 34.85M | 17.20M | 32.20M | 37.26M | Stockholders Equity |
| 16.53M | 70.25M | 69.53M | 66.19M | 39.90M | 6.62M |
| Cash Flow | Free Cash Flow | ||||
| 2.00M | 2.02M | -2.17M | -3.31M | 4.22M | -1.77M | Operating Cash Flow |
| 13.97M | 11.74M | 5.75M | -41.00K | 6.73M | -98.00K | Investing Cash Flow |
| -11.97M | -9.72M | -16.87M | -23.88M | -2.78M | -2.30M | Financing Cash Flow |
| 2.49M | -4.17M | 7.01M | 12.41M | 22.26M | -521.00K |
Bragg Gaming Group Inc Technical Analysis
Negative
6.13
Price Trends
6.80
Negative
5.95
Positive
6.54
Negative
Market Momentum
-0.17
Negative
43.06
Neutral
33.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRAG, the sentiment is Negative. The current price of 6.13 is below the 20-day moving average (MA) of 6.22, below the 50-day MA of 6.80, and below the 200-day MA of 6.54, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BRAG.
Bragg Gaming Group Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Performance Comparison
TSE:BRAG
Bragg Gaming Group Inc
6.13
-2.72
-30.73%
TSE:SCR
Strathcona Resources
28.74
-1.65
-5.43%
Bragg Gaming Group Inc Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -2.23% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Bragg Gaming Group's earnings call highlighted strong revenue and profit growth driven by strategic expansion and proprietary content, while also noting potential challenges in certain markets due to regulatory changes.Highlights
Record Revenue Growth
Bragg Gaming Group reported a record high total revenue of EUR27.2 million for Q4 2024, up 16% compared to Q4 2023.
Significant Gross Profit Increase
Gross profits for Q4 2024 grew by 31% to EUR15.8 million, with a gross profit margin rising by 650 basis points to 58%.
Strong Adjusted EBITDA Growth
Adjusted EBITDA for Q4 2024 grew by 68% to EUR4.7 million, with a margin increase of 530 basis points compared to the previous year.
Expansion in North America and Brazil
Bragg Gaming Group increased its market penetration in North America and launched in the Brazilian regulated iGaming market, with significant content agreements.
Strategic Partnerships
The company established a content development and technology leasing agreement with Caesars Entertainment and expanded its Canadian footprint into Quebec.
Strong Proprietary Content Growth
Revenue from proprietary content reached a record 13.3% of total revenue in Q4 2024, with a compound annual growth rate of 59% since 2021.
Lowlights
Slight Decrease in Gross Margin for Full Year
Despite the strong Q4 performance, the full-year 2024 gross margin decreased slightly by 40 basis points to 53%.
Potential Market Contraction in the Netherlands
The company anticipates a contraction in the Netherlands market in 2025 due to regulatory changes affecting sports betting advertising.
Dependence on Proprietary Content
The company's strategy heavily relies on proprietary content, which may pose risks if new content does not perform as expected.
Company Guidance
During the Bragg Gaming Group's earnings call, guidance for 2025 was presented, indicating a positive outlook with projected revenues between EUR117.5 million and EUR123 million, and adjusted EBITDA expected to rise to between EUR19 million and EUR21.5 million. At the midpoint of this guidance, revenue growth is anticipated at 18% with adjusted EBITDA increasing by 28%, and margins improving by 140 basis points. The call highlighted strategic market expansions, particularly in North America and Brazil, with proprietary content expected to significantly contribute to future growth. The company plans to double wagering on its games in North America in the first quarter of 2025 compared to the previous year. Additionally, Bragg is targeting the U.S. and Brazilian markets to account for 15% and 10% of total revenue in 2025, respectively. Operational improvements include rising proprietary content to 13.3% of total revenue in Q4 2024 and a focus on higher-margin products to enhance profitability.Bragg Gaming Group Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
Bragg Gaming Group Projects Double-digit Growth for 2025
Positive
Jan 29, 2025
Bragg Gaming Group announced its preliminary unaudited financial results for 2024, reporting a 9% increase in revenue to at least EUR 102 million and a slight rise in Adjusted EBITDA. For 2025, the company projects double-digit revenue growth and an increase in Adjusted EBITDA, driven by a strategic shift towards proprietary content and expansion in key markets such as North America and Brazil.
Bragg Gaming Partners with Caesars for Exclusive iGaming Content
Jan 14, 2025
Bragg Gaming Group Inc has announced a significant partnership with Caesars Entertainment, transitioning from a content supplier to a technology partner. This collaboration is expected to enhance Bragg’s presence in North America, drive significant revenue growth in 2025, and expand its exclusive content offerings while providing Caesars with proprietary online casino games and an enriched player experience.
Bragg Gaming Expands into Brazil’s Booming iGaming Market
Jan 7, 2025
Bragg Gaming Group has launched its services in Brazil’s newly regulated online casino market, anticipated to be worth USD 1.4 billion in 2025, with potential growth to USD 3.7 billion by 2029. The company is live with about one-third of licensed operators in Brazil and aims to expand to over half by mid-2025. Bragg’s strategy includes enhancing its proprietary content offerings and partnering with local studios to tailor its content to Brazilian players, ultimately aiming for significant top- and bottom-line growth.
Bragg Gaming Confident with Insider Purchases
Dec 10, 2024
Bragg Gaming Group Inc. has announced significant insider share purchases, highlighting management’s confidence in the company’s undervalued shares. The company reaffirms a strong outlook for 2025, expecting double-digit revenue growth and improved profit margins while continuing to prioritize strategic growth and liquidity initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.