Although revenue grew by 0.5% year-on-year, gross profit dropped 10.3% to €12.4 million, and adjusted EBITDA decreased by 23.8% to €3.6 million. However, considering the changes in the product mix, the decline in gross profit and adjusted EBITDA was anticipated by the company.
Therefore, Bragg reaffirms its full-year revenue forecast for 2024, which is expected to be between €102 million and €109 million, with adjusted EBITDA anticipated to be between €15.2 million and €18.5 million.
Regarding the strategic review process announced in March related to alternatives for maximizing shareholder value, Bragg expressed satisfaction with the progress made so far but stated that it will not comment on the status of the process at this time.
Bragg CEO Matevž Mazij said: "As expected, due to changes in our product mix, gross profit and adjusted EBITDA declined by 10.3% and 23.8% year-over-year, respectively. However, I am encouraged by the recent momentum of our higher-margin products (including our proprietary iGaming content in North America) and the launch of new clients supported by Bragg’s Player Account Management ('PAM') and turnkey solutions.
"We have taken decisive actions to strengthen our leadership team, expand our influence in major global markets, and make significant inroads in the US market. Given that Bragg’s overall share in the US iGaming content provider market is estimated to be still under 1%, our expanding distribution in the US and our extensive distribution in regulated markets worldwide offer tremendous upward opportunities for the company, which is now licensed, certified, or otherwise compliant in over 30 jurisdictions.
"Looking ahead, I believe the seeds we are planting today in the US, in content and technology platforms, will bear substantial fruit in the future. We are building a stronger, more agile Bragg, and with our distribution in the US and global influence, we will be well-prepared to leverage the huge opportunities in the global iGaming market in the future."
