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Bragg Gaming Group Inc (TSE:BRAG)
TSX:BRAG
Top Page
Bragg Gaming Group Inc
(TSX:BRAG)
64Neutral
Positive Factors
Financial Performance
Bragg Gaming beats EBITDA expectations with a 17% margin, highlighting the success of a product mix-shift into higher-margin offerings.
Market Strategy
Bragg's exclusive partnership and equity investment in RapidPlay strengthens its broader Brazilian market strategy.
Revenue Growth
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.
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$131.36M
Dividend YieldN/A
Average Volume (3M)15.24K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth10.79%
EPS Growth-30.99%
CountryCA
Employees502
SectorCommunication Services
Sector Strength76
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.32
Shares Outstanding25,067,982
10 Day Avg. Volume20,699
30 Day Avg. Volume15,236
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$10.23Price Target Upside87.36% 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 provider, primarily operating within the online gaming and gambling industry. The company specializes in offering a comprehensive suite of products and services, including casino content, proprietary and third-party gaming content, and managed services for online casino operators. Bragg Gaming Group's key focus is on delivering cutting-edge technology solutions, engaging gaming content, and robust platform services to enhance the gaming experience for operators and players alike.
How the Company Makes MoneyBragg Gaming Group Inc primarily generates revenue through the provision of online gaming content and technology solutions to casino operators. The company earns money by licensing its proprietary and third-party gaming content to online casinos, ensuring these operators have access to a wide array of popular and engaging games. Additionally, Bragg Gaming Group provides managed services, platform solutions, and software support, which contribute to its revenue streams. The company also benefits from strategic partnerships and collaborations with other gaming technology providers and content creators, enhancing its market presence and expanding its portfolio of offerings. These partnerships often help Bragg Gaming Group to access new markets and attract a larger customer base, further driving its revenue growth.
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
Neutral
5.46
Price Trends
6.26
Negative
5.97
Negative
6.33
Negative
Market Momentum
-0.29
Negative
47.49
Neutral
70.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BRAG, the sentiment is Neutral. The current price of 5.46 is above the 20-day moving average (MA) of 5.45, below the 50-day MA of 6.26, and below the 200-day MA of 6.33, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BRAG.
Bragg Gaming Group Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Performance Comparison
TSE:BRAG
Bragg Gaming Group Inc
5.74
-2.47
-30.09%
TSE:SCR
Strathcona Resources
25.42
-7.10
-21.83%
Bragg Gaming Group Inc Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -12.92% | 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
M&A TransactionsBusiness Operations and Strategy
Bragg Gaming Strengthens Brazilian Market Position with RapidPlay Partnership
Positive
Apr 10, 2025
Bragg Gaming Group has acquired a strategic equity stake in Brazilian game development studio RapidPlay, enhancing its position in Brazil’s burgeoning online casino market. This exclusive partnership allows Bragg to integrate RapidPlay’s localized content, leveraging its efficient cost development model to support rapid scalability and margin efficiency. The collaboration is expected to significantly contribute to Bragg’s revenue, with Brazil’s market projected to grow substantially in the coming years.
Spark’s Take on TSE:BRAG Stock
According to Spark, TipRanks’ AI Analyst, TSE:BRAG is a Neutral.
Bragg Gaming Group Inc’s stock score of 64 reflects strong revenue growth and strategic expansions into North America and Brazil. The company’s low leverage and increasing equity are positive signs of financial health. However, consistent net losses and the lack of profitability are significant concerns. The technical analysis points to a bearish trend, and the negative P/E ratio suggests current unprofitability. Despite these challenges, the positive outlook from the earnings call and corporate events indicate potential for future growth, particularly if profitability can be improved.
To see Spark’s full report on TSE:BRAG stock, click here.
Product-Related AnnouncementsBusiness Operations and Strategy
Bragg Gaming Group Expands Canadian Presence with Loto-Québec Deal
Positive
Feb 20, 2025
Bragg Gaming Group has expanded its presence in Canada by entering into an agreement with Loto-Québec to provide exclusive online casino content. This expansion into their second Canadian province is part of Bragg’s strategy to grow its footprint in North America and diversify its revenue streams. The agreement will allow Loto-Québec to access Bragg’s proprietary content, including games from Atomic Slot Lab and Indigo Magic, and offer additional titles through partners under the Powered By Bragg program. This move is expected to enhance Bragg’s strategic goals by increasing content utilization and strengthening its market position.
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.
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.