Bragg Gaming Group Revenue Grows Again

Bragg Gaming Group, which trades on the Nasdaq, was out with earnings today. It was another record quarter in the US-regulated markets, with revenue up 155%. Overall revenue climbed by 7.1%, but that number would have been 27% with the Netherlands excluded. Recent government intervention in that market, including very tight deposit limits per person, has dramatically slowed growth there. 

Total revenue came in at $28.5 million, and full-year guidance is for $120 million, up 18% over last year, and EBITDA for 2025 is coming in around $20 million, up more than 28%. The company was quick to point out during its earnings call that, given the company's current enterprise value of roughly $110 million, its current valuation is only 5X 2025 EBITDA, which is far less than similar companies in the iGaming sector.

The company also clarified that it intends to continue its path away from being a game aggregator and toward producing more proprietary content. They remain laser-focused on margins around 20% and see no way to reach that number with the lower margin associated with aggregating other content for distribution. 

Earlier this year, the company announced it was expanding its partnership with Caesars by allowing Caesars access to its Remote Gaming Server and leasing its HUB content delivery system and FUZE player engagement platform to the online casino operator. They also agreed to collaborate with Caesar's own new in-house studio design team to produce exclusive content. 

This week, Caesar’s and Bragg announced their first title, Caesar’s Palace Signature Multihand Blackjack Surrender, which doesn’t exactly roll off the tongue but promises to be a crowd pleaser for not only Caesar’s Palace Online but also their sister casino, Horseshoe Online Casino. And it will cement the ongoing partnership with Bragg.

Brazil just relaunched its iGaming-regulated market. While the change has wreaked havoc on some B2C operators, who have had to re-sign up their entire player list, it has been a boon for B2B suppliers like Bragg, which have seen increased demand. 

Not only for their slots but also for their integrated services, like their Fuze Player engagement platform, which allows not only tier 1 operators but even tier 2 and 3 operators to offer widgets, badges, and promotions on these slots without any further tech capabilities. 

The company indicated that Brazil was likely to make up more than 10% of total revenue as it ramps up. They also pointed to market research that indicated that the total addressable market in Brazil was likely to triple by 2030, up from the $1.4 billion it is expected to create this year to closer to $4 billion by the end of the decade. 

With continued strong US growth, growing optimism around Ohio legalizing iGaming, early traction in Brazil, and a deepening partnership with Caesars, Bragg appears well-positioned. The company is also likely to attract additional operators seeking support in launching bespoke in-house studios, giving Bragg even more to look forward to in the coming quarters.

If they can also follow through with their stated goal of increasing proprietary content and embracing higher-margin opportunities, their current seriously undervalued earnings multiple may soon be a thing of the past.