Q1 2024 Bragg Gaming Group Inc Earnings Call
Speaker Change: [music].
Jayle: Thank you for standing by. My name is Jayle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bragg Gaming Group First Quarter 24 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
Thank you for standing by my name is jail and it will be a conference operator today at this time I would like to welcome everyone to the break gaming group first quarter 'twenty four earnings conference call.
Jail: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.
Jayle: After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the conference over to Yaniv Spielberg, Chief Strategy Officer. You may begin.
Speaker Change: I'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad, if you'd like to withdraw your question Press Star one again.
Speaker Change: I would now like to turn the conference over to you and if Spielberg Chief strategy Officer, you may begin.
Speaker Change: Yeah.
Yaniv Spielberg: Thank you, operator. Good morning, everyone, and thank you for joining our first quarter of 2024 earnings conference call. I'm Yaneep Spielberg, Chief Strategy Officer for Bride Gaming Group. I'll be hosting today's call alongside my colleagues; our CEO, Matt, will comment on our first quarter performance, and our CFO, Ronan, will review and discuss our first quarter financial results. If you've not already done so, you can follow our earnings call presentation from our website at investors, that's investors with an S at the end,.bragg.group in the section called latest presentation.
Speaker Change: Thank you operator, good morning, everyone and thank you for joining our first quarter of 2024 earnings conference call.
Speaker Change: These feel bird Chief strategy Officer for Brian Gaming group I'll be hosting today's call alongside my colleagues, our CEO Matt will.
Speaker Change: We will comment on our first quarter performance and our CFO Ronen will review and discuss our first quarter financial results. If you have not already done. So you can follow our earnings call presentation from our website.
Speaker Change: Investors, that's investors with an S. At the end talk broad Dot group in the section called latest presentation.
Yaniv Spielberg: On this call, we will review Bragg's financial and operating results for the first quarter of 2024. Following our prepared remarks, we'll open the conference call to a question and answer period. I will start the call with some brief cautionary remarks regarding certain statements that may be made on this call. Certain statements made on this conference call and our responses to various questions may constitute forward-looking information or future-oriented financial information within the meaning of applicable securities law.
Speaker Change: On this call, we will review <unk> financial and operating results for the first quarter of 2024. Following our prepared remarks, we'll open the conference call to a question and answer period.
Yaniv Spielberg: Statements about expected growth, prospective results, strategic outlooks, and financial and operational expectations, opportunities, and projections rely on a number of assumptions concerning future events, including markets and economic conditions, business prospects or opportunities, future plans and strategies, technological developments, and anticipated events, trends, and regulatory changes that may affect the corporation and its subsidiaries and their respective customers and industries. While we believe these assumptions to be reasonable, they are subject to a number of risks, uncertainties, and other factors, many of which are outside the company's control and which could cause the actual results, performance, or achievement of the company to be materially difficult. There can be no assurances that these assumptions or estimates are accurate or that any of these expectations would prove accurate.
Speaker Change: I'll start the call with some brief cautionary remarks regarding certain statements that may be made on this call certain statements made on this conference call and our responses to various questions may constitute forward looking information or future oriented financial information within the meaning of applicable securities law.
Speaker Change: Statements about expected growth prospective results strategic outlook in financial and operational expectations opportunities and projections rely on a number of assumptions concerning future events, including market and economical conditions.
Speaker Change: Business prospects or opportunities future plans and strategies technological developments and anticipated events trends and regulatory changes that may affect the corporation and its subsidiaries and their respective customers and industries. While we believe these assumptions to be reasonable they are subject to a number of risks uncertainties and other.
Speaker Change: Factors, many of which are outside the company's control and which could cause the actual results performance or achievements of the company to be materially different.
Speaker Change: There can be no assurances that these assumptions or estimates are accurate or any of these expectations will prove out here for a complete discussion of these risk factors. Please refer to our recently filed press release and other publicly available disclosure.
Yaniv Spielberg: For a complete discussion of these risk factors, please refer to our recently filed press release and other publicly available disclosures. I'd like to turn the call now to our CEO, Mats. Mats, go ahead.
Speaker Change: Like to turn the call now to our CEO, Matt <unk>.
Matt: Go ahead.
Matevz Mazij: Good morning, everyone. My name is Matevz Mazij.
Matt: Good morning, everyone. My name is <unk>, <unk>, I'm, chairman and CEO, Brian <unk>.
Matevz Mazij: I'm Chairman and CEO of Bragg. On this call, I'm going to make some initial comments, and I'll run through some key operational highlights from the first quarter of 2024. Then I'm going to pass the line over to Ronen Kannor, our CFO, who will take you through the company financials. After our financial recap, I'll be talking more about some of our main strategic and operational focus areas. Before wrapping up with our outlook and summary, we'll then open up the call to your questions.
Matt: On this call I'm going to make some initial comments and I'll run through some key operational highlights from the first quarter of 2024.
Matt: Then I'm going to pass the line over to Ronan <unk>, our CFO, who will take you through the company financials.
Ronan: After our financial recap.
Ronan: Talking more about some of our main strategic and operational focus areas.
Ronan: Before wrapping up with our outlook and summary, and we will then open up the call to your questions.
Matevz Mazij: To start, let me recap and comment briefly on the special committee which we announced last quarter, which has been set up to review possible strategic alternatives for Bragg. This is a board-run process chaired by independent director Don Roberts.
Ronan: To start let.
Ronan: Let me recap and comment briefly on the Special Committee, which we announced last quarter.
Ronan: Which has been set up to review possible strategic alternatives for <unk>.
Ronan: This is a board run process chaired by independent Directors Dawn Robertson.
Matevz Mazij: The special committee was set up against the backdrop of recent market activity, which included plenty of iGaming M&A and the recently prized Games Global IPO, and we have seen corresponding increased interest in Bragg. Possible strategic alternatives may include a sale, merger, acquisition, or additional investment. While no assurances can be made that any transaction will be completed as a result of this process, management has been informed by the special committee that the process is going well.
Ronan: The Special Committee was set up against the backdrop of recent market activity, which included plenty of I gaming M&A and the recently priced games global IPO.
Ronan: And we have seen a corresponding increased interest and Brian.
Ronan: Possible strategic alternatives may include a sale merger acquisition or additional investment.
Ronan: While no assurances can be made that any transaction will be completed as a result of this process.
Ronan: Management has been informed by the special committee that the process is going well.
Matevz Mazij: I am pleased to report that the special committee confirms it has retained bankers and counsel, London-based Oakville Capital and Toronto-based Blake's, respectively, to assist with the process and that it is encouraged by the progress made to date. As we've previously indicated, the board does not plan to provide any further updates on the process until it has material developments to report on. But in the meantime, management continues to focus on business growth and delivering on its strategic initiatives.
Ronan: I am pleased to report that the special Committee confirms it out it was retained bankers and counsel.
Ronan: London based Oakville capital and Toronto based Blake's respectively to assist with the process and that is encouraged by the progress made to date.
Ronan: As we've previously indicated the board does not plan to provide any further updates on the process until it has material developments to report on.
Ronan: But in the meantime management continues to focus on business growth.
Ronan: Delivering on its strategic initiatives.
Matevz Mazij: Turning now to operational highlights since the beginning of the year. Post quarter end, we secured funding to support the working capital needs of the business and help with growth opportunities, including newly regulated markets. It is important to note that this financing is a one-year loan intended to provide the company with short-term financial flexibility, which supports our objective of maximizing shareholder value through the strategic alternatives review process. Recently, we were pleased to report that we have hired our new chief commercial officer, Neal White, in what was a key open role.
Ronan: Turning now to operational highlights since the beginning of the year.
Ronan: Post quarter end, we secured funding to support the working capital needs of the business and help with growth opportunities.
Ronan: Including newly regulated markets.
Ronan: It is important to note that this financing is a one year loan intended to provide the company with short term financial flexibility.
Ronan: Which supports our objective of maximizing shareholder value through the strategic alternatives review process.
Ronan: Recently, we were pleased to report that we have hired our new Chief commercial officer, Neil White.
Matevz Mazij: And we have also been further strengthening our teams through the addition of key global, LATAM, UK, and US hires. These hires ensure that we maximize the return on the content we develop and the technology that we build and that we are able to fully deploy in all the jurisdictions in which we operate. Once again, it is important to recognize that these hires are critical for achieving our growth objectives and will have a direct impact on our ability to maximize shareholder value through the strategic alternatives review process.
Ronan: In what was a key open role and we have also been further strengthening our teams through the addition of key global Latam U K and U S hires.
Ronan: These hires ensure that we maximize the return on the content we develop.
Ronan: And the technology that we built.
Ronan: And that we are able to fully deploy in all the jurisdictions in which we operate.
Ronan: Once again it is important to recognize that these hires are critical for achieving our growth objectives.
Ronan: And we will have a direct impact on our ability to maximize shareholder value through the strategic alternatives review process.
Matevz Mazij: As you will be aware, this is Ronan's final quarterly earnings call, and he will be departing the company in June. I thank Ronan for his service to the company, and I can confirm that the board is looking to recruit an experienced financial resource to lead the finance team and assist with the strategic alternatives review process.
Ronan: As you will be aware this is Ron and his final quarterly earnings call.
Ron: And he will be departing the company in June.
Ron: I think ronen for his service to the company and I can confirm that the board is looking to recruit an experienced financial resource.
Ron: To lead the finance team and assist with the strategic alternatives review process.
Matevz Mazij: Next, let me talk about our recent progress in content development and deployment. In the first quarter, we released 19 new exclusive online casino games, including seven from our in-house Bragg studios. This compares to 11 exclusive games launched in the first quarter of last year, and we will continue to grow our games portfolio at this cadence for the rest of the year. During the first quarter, we launched online games in the U.S. for the first time from popular land-based slots developer Kingshow Games, which further boosts our strong exclusive games roadmap for North America.
Ron: Next let me talk about our recent advancements in content development and deployment.
Matevz Mazij: We also delivered and deployed our second custom slot game developed for Caesars Digital, Boardwalk, Slots, Bankers, and Cash, which is now exclusively live on Caesars Palace Online Casino and Caesars Sportsbook and Casino in Michigan and New Jersey.
Ron: In the first quarter, we released 19, new exclusive online casino games, including seven from our in House <unk> Studios. This.
Ron: This compares to 11 exclusive games launched in the first quarter of last year, and we will continue to grow our games portfolio at this cadence for the rest of the year.
Ron: During the first quarter, we launched online games in the U S. For the first time from popular land based slots developer King show games, which further boosts our strong exclusive games roadmap for North America.
Ron: We also delivered and deployed our second custom slot game developed for Caesars digital.
Ron: <unk> walked slots bankers in cash, which is now exclusively live on seasons pilots online casino and Caesars sports books, and casino in Michigan and New Jersey.
Matevz Mazij: We continued to push growth in multiple international iGaming jurisdictions, and during the first quarter, we laid the foundations of growth in the soon-to-be-regulated market of Peru, where Bragg was registered as an approved service provider by the Peruvian Ministry of Foreign Trade and Tourism. This B2B license allows us to distribute both our exclusive and aggregated game portfolio, via the Bragg Hub content delivery platform to operators in Peru. After Ronen has presented our financial results for the quarter, I will give you an update on our momentum in the U.S. and Canada with our exclusive content rollout, and I will discuss some of the newly regulating or reforming iGaming jurisdictions in which we believe we are well positioned to take market share.
Ron: We continue to push growth in multiple international I gaming jurisdictions and during the first quarter, we laid the foundation of growth in the soon to be regulated market of Peru.
Ron: We're Bragg was registered as an approved service provider by the Peruvian Ministry of foreign trade and tourism.
Ron: Theres B to B license allows us to distribute both our exclusive and aggregated game portfolio.
Ron: The <unk> hub content delivery platform to operators improve.
Ron: After rolling as presented our financial results for the quarter I will give you an update on our momentum in the U S and Canada with our exclusive content rollout and I will discuss some of the newly regulating or reforming I gaming jurisdictions in which we believe we are well positioned to take market share.
Matevz Mazij: We also continue to expand our distribution network for our exclusive content in existing markets, and during the first quarter, we continued to expand in the U.S. by launching new online casino content with Golden Nugget in Michigan. After quarter end, we were pleased to announce that we have agreed an international online casino content distribution deal with Light and Wonder. This agreement will see our exclusive games, including from our proprietary studios, Atomic Slot Lab.
Ron: We also continued to expand our distribution network for our exclusive content in existing markets and during the first quarter. We continued to expand in the U S. By.
Ron: By launching new online casino content with Golden Nugget in Michigan.
Ron: After quarter end, we were pleased to announce that we have agreed and international online casino content distribution deal with light and wonder.
Ron: This agreement will see our exclusive games, including from our proprietary studios atomic slot lab.
Matevz Mazij: Indigo Magic and Wall Street Gaming added to Light and Wonder's online ecosystem and opened up multiple new operator partners for us. Lastly, this week, we announced that we continue to grow in Italy, Europe's second largest regulated iGaming market. Most recently, by making our exclusive content available with leading local operators TESO. After Ronen has taken you through the financial results, I will come back to discuss some of these points in more detail. Ronen
Ron: Indigo Magic and Wall Street gaming added to light and wonders online ecosystem and opening up multiple new operator partners for us.
Ron: Lastly, this week, we announced that we continued to grow in Italy, Europes second largest regulated <unk> gaming market.
Ron: Most recently by making our exclusive content available with leading local operators T cell.
Ron: After one and has taken you through the financial results I will come back to take some of these points in more detail.
Ron: Ronan.
Ronen Kannor: Thank you, Matt, and good morning, everyone. I'll begin my comments on slide seven. In the first quarter, total revenue was up by 4.2%, quarter over quarter, to €23.8 million. The growth was mainly derived organically from our existing customer base, in particular the PAM and 10K Solution customers in the Netherlands, together with the content offering and solid revenue performance from the Wildstreet Gaming Studio customers. Gross profit for the quarter decreased by 2.8% to €11.9 million, with the gross profit margin decreasing to 49.9%.
Ronan: Thank you, Matt and good morning, everyone I'll begin my comments on slide seven.
Ronan: In the first quarter total revenue went up by four 2% quarter over quarter to $23 8 million euros. The growth was mainly derived organically by existing customer base, and particularly the Pam and turnkey solution customers in the Netherlands, together with the content offering and solid revenue performance from the Wall Street gaming studio customers grow.
Ronan: Profit for the quarter decreased by two 8% to $11 9 million euros with gross profit margin decreased to 49, 9%.
Ronen Kannor: The quarter-over-quarter gross profit decline, both in gross profit and margins, was primarily due to the revised commercial terms agreed with key strategic partners derived from the managed services and aggregation products. Adjusted EBITDA for the quarter was down 12.4% to 3.4 million euros, with adjusted EBITDA margin decreasing by 270 base points to 14.3%. The change in margin is mainly the result of changing the revenue product mix, resulting in a reduced gross profit and an increased level of selling, general, and administrative expenses.
Ronan: Quarter over quarter gross profit decline both in gross profit and margins is primarily due to the revised commercial terms agreed with key strategic partner derived from the managed services and aggregation product.
Ronan: Adjusted EBITDA for the quarter was down 12, 4% to $3 4 million euros with adjusted EBITDA margin decreasing by 270 basis points to fall looking for 3%.
Ronan: The change in margin is mainly as a result of changing the revenue product mix, resulting in reduced gross profit, while the increased level of selling general and administrative expenses.
Ronen Kannor: As of March 2024, the cash balance ended at 7.7 million euros with a positive net working capital position. On April 2024, the company obtained a secured promissory note in the principal amount of $7 million to certain entities controlled by the company's related parties and bears interest at an annual rate of 14%, payable quarterly. The purpose of issuing the note is to provide the company with maximal financial flexibility as we continue to progress our strategic alternatives review process. And finally, the company reiterated its full-year revenue and adjusted EBITDA guidance for 2024 at $102.09 million revenue and $15.2 to $18.5 million of adjusted EBITDA. We continue to execute on our mission and strategic plan.
Ronan: As of March 2024, cash balance ended at $7 7 million euros with a positive networking capital position.
Ronan: On April 2024, the company obtained a secured promissory note in the principal amount of $7 million.
Ronan: Certain entities controlled by the company as a related party and bears interest at an annual rate of 14% payable quarterly.
Ronan: Purpose of issuing the notice to provide the company with maximum financial flexibility as we continue to progress our strategic alternatives review process.
Ronan: And finally, the company reiterated its full year revenue and adjusted EBITDA guidance for 2024 at 100 209 million revenue and 15% to $18 5 million of adjusted EBITDA.
Ronan: We continue to execute against our mission and strategic plan, we are scaling up our business in line with both our revenue growth and the continued movement in product mix as indicated in the right hand side of the slide.
Ronen Kannor: We're scaling up our business in line with both our revenue growth and the continued movement in product mix, as indicated in the right-hand side of the slide. Gross Profit Decreased by 2.8% to $11.9 Million with Margin Dropping by 306 in Base 1, to 49.9%. Best Quarter saw a decline both in gross profit and margins due to revised commercial terms agreed with key strategic partners derived from the managed services and aggregation products.
Ronan: Gross profit decreased by two 8% to $11 9 million with margin dropping by 360 <unk> base wants to.
Ronan: To 49, 9%.
Ronan: First quarter decline both in gross profit margins due to revised commercial terms agreed with key strategic partner derived from the managed services and aggregation products.
Ronen Kannor: In the first quarter, the total gains and content revenue segment amounted to 19.4 million euros and represented 81.5% of the total revenue. This is opposed to last year's 17.6 million and 76.8%. Exclusive third party and proprietary content total revenue was also increased by 12.5% quarter over quarter to 7.3 million euros as opposed to 6.5 million, demonstrating positive momentum. Proprietary content deployment is positively progressing both in the US and the EU market by increasing distribution and gains performance constantly.
Ronan: In the first quarter total gains of content revenue segment amounted to $19 4 million euros and represented 81, 5% of the total revenue. This as opposed to last year of $17 6 million and 76, 8%.
Ronan: Third party and proprietary content total revenue were also increased by 12, 5% quarter over quarter to $7 3 million euros as opposed to $6 5 million demonstrating a positive momentum for <unk>.
Ronan: Prior to content deployment is positively progressing both in the U S and EU market by increasing distribution and gains performance constantly.
Ronen Kannor: Bragg is expecting an improvement in gross profit margin to take place in financial year 2025 by increasing its higher-margin revenue portion of its proprietary content, PAM, and TNK Solutions. Moving to slide nine, adjusted EBITDA amounted to 3.4 million euros against an operating loss of 1.3. The gap was driven by falling non-cash and exception items.
Ronan: <unk> is expecting an improvement in gross profit margin to take place in financial year 2025 by increasing its higher margin revenue portion of its proprietary content, Pam and turnkey solutions.
Ronen Kannor: Moving to slide nine adjusted EBITDA amounted to $3 4 million euros against an operating loss of $1 <unk> III.
Ronan: The gap was driven by the following noncash exceptional items depreciation and amortization will increase was the result of the additional level of investment mainly in software development cost.
Ronen Kannor: Depreciation and amortization, the increase was the result of the additional level of investment, mainly in software development costs, exceptional costs relating to the legal and professional costs incurred associated with non-recurring corporate and regulatory matters, and gain on remeasurement of deferred consideration associated with the acquisition of Spin in June 2022 on a total outstanding deferred liability that was adjusted to reflect the change in the current fair value. Moving to slide 10, as you will see on the slide, we ended the first quarter with a cash balance of 7.7 million euros, compared to 8.8 million euros at December 31st, with an outstanding liability of 2.5 million US dollars of convertible security. As of May 9th, 2024, the total outstanding liability is further reduced to 2 million dollars.
Ronan: <unk> costs relating to the legal and professional costs incurred associated to nonrecurring corporate and regulatory matters and gain on remeasurement of deferred consideration.
Ronan: We ended with a traditional spinning June 2022, when our total outstanding deferred liability that was adjusted to reflect the change in the current fair value.
Ronen Kannor: Moving to slide 10, as Youll see on the slide we ended the first quarter with a cash balance of $7 7 million euros compared to $8 8 million at December 31, with outstanding liability of $2 5 million U S dollars of convertible securities as of May nine 2024, total outstanding liabilities further reduced to 2 million.
Ronen Kannor: We expect to continue exercising the right to pay down the existing convertible security, subject to ongoing management assessments. Net working capital, which excludes deferred consideration and convertible debt at the end of 31 March 2024, amounted to 3.8 million euros compared to 5.1 million at the beginning of the year. Post-period N, the company secured $7 million in a debt facility with a related party to improve its networking capital position to provide further flexibility to the company needs.
Ronen Kannor: We expect to continue exercising the right to pay down the existing convertible security subject to ongoing management assessment networking capital, which is excluding deferred consideration and convertible debt at the end of 30 <unk> of March 2020, full amounted to $3 8 million euros compared to $5 1 million at the beginning of the year.
Ronen Kannor: Year.
Ronen Kannor: Post period end the company secured $7 million debt facility with a related party to improve net working capital position to provide further flexibility to the company needs.
Ronen Kannor: From a cash flow perspective, cash generated from operating activities amounted to 2.7 million euros, with underlying performance reaching 3.6 million euros, with a negative movement in working capital and income taxes of 0.8 million euros. A total of 2.8 million euros were used in investing activities, mainly related to the capitalization of software development costs to a total value of 2.6 million euros and the remaining balance for property and equipment. And a total of 0.7 million euros used in finance activities, which is predominantly related to the repayment of loans in relation to the convertible security amounting to a total of 0.5 million euros.
Ronen Kannor: From a cash flow perspective cash generated from operating activities amounted to two point several million euros with underlying performance, reaching $3 6 million euros with a negative movement in working capital and income taxes zero 8 million euros.
Ronen Kannor: Order of $2 8 million euros yields investing activities, mainly related to the capitalization of software development costs to a total value of two 6 million euros and the remaining balance for property and equipment.
Ronen Kannor: And a total of <unk> 7 million euros used in finance activities, which is predominantly related to the repayment of loans in relation to the convertible security to the total of 0.5 million euros.
Ronen Kannor: Looking forward, management is projecting positive cash flow from operations, while there is no CAPEX or technology debt required in the business. Thank you very much, everyone. This has been my last quarter after four years with the company. I would like to thank all of my colleagues, especially my finance team and the board, for all the support during this time. And with that, I will hand over the call back to Matt to continue his commentary on strategy and operations.
Ronen Kannor: Looking forward management is projecting positive cash flow.
Matt: From operations, where there is no capex or technology that required in the business.
Matt: Thank you very much everyone. This was been my last quarter. After four years with the company I would like to thank all of my colleagues, especially my finance team and the board for all the support during this time.
Ronen Kannor: And with that I will hand over the call back to Matt to continue the commentary on strategy and operations.
Matt: Thank you Ronan.
Matevz Mazij: Last quarter, we showed you that we had seen encouraging growth in North America with exclusive content on our new Bragg RGS, notably in the fourth quarter, which is the sharp growth you can see in the chart on the right of this slide. As you can see, this level of wagering activity on our exclusive games has continued through the first quarter, to the extent that we have seen an 8x increase in wagering on these games, which come both from our proprietary Bragg Studios as well as from our Powered by Bragg partners between April 2023 and March 2024.
Matt: Last quarter. We showed you that we have seen encouraging growth in North America with exclusive content on our new brag Rgs.
Matevz Mazij: Notably in the fourth quarter, which is the sharp growth you can see in the chart on the rights of this slide.
Matevz Mazij: As you can see this level of wagering activity on our exclusive gains has continued through the first quarter.
Matevz Mazij: To the extent that we have seen an eight <unk> increase in wagering on these games, which come both from our proprietary <unk> studios as well as from our powered by <unk> partners.
Matevz Mazij: In April 2023.
Matevz Mazij: The March 2024.
Matevz Mazij: Our localized portfolio for North America includes many online titles which already have a following in the land-based sector, and we believe this represents a key strength in our portfolio for this market. We are encouraged that we will still see significant potential upside to come, including through continuing our rollout in Pennsylvania and Ontario and through opportunities in other Canadian provinces where we see considerable interest in our portfolio of exclusive content, aggregated content, and player engagement.
Matevz Mazij: Our localized portfolio for North America includes many online titles, which already have a following in the land based sector and we believe this represents a key strength in our portfolio for this market.
Matevz Mazij: We are encouraged that we will still see significant potential upside to come including by continuing our rollout in Pennsylvania in Ontario and through opportunities in other kit Canadian provinces, where we see considerable interest in our portfolio of exclusive content.
Matevz Mazij: Irrigated content and player engagement.
Matevz Mazij: Our content is all supported by our Fuse engagement tools, and in the coming months, we are looking forward to rolling out our first progressive jackpot on the Bragg RGS in the U.S., as well as in Europe and other markets.
Matevz Mazij: Our content is all supported by our fuse engagement tools and in the coming months.
Matevz Mazij: We are looking forward to rolling out our first progressive jackpot on.
Matevz Mazij: On the bragged rgs in the U S as well as in Europe and other markets.
Matevz Mazij: Our growth as a content provider in North America is being driven by both in-house and partner studios delivered and boosted by our newest RGS technology and promotional functionality. As we continue to consistently develop and deploy our exclusive online casino games, we are building a critical mass of revenue-generating content. The games that we released last year and the year before continue to generate revenues for us even as we roll out new games on a weekly basis.
Matevz Mazij: Our growth as a content provider in North America is being driven by both in house and partner studios delivered and boosted by our newest rgs technology and promotional functionality.
Matevz Mazij: As we continue to consistently develop and deploy our exclusive online casino games. We are building a critical mass of revenue generating content.
Matevz Mazij: The games that we released last year and the year before continue to generate revenues for us even as we rollout new games on a weekly basis.
Matevz Mazij: In the first quarter, we released 19 new exclusive games, including 7 from our proprietary Bragg Studios. This is up from 11 exclusive games released in the same period last year. Exclusive content continues to be a key pillar of our growth strategy, and we balance our portfolio between in-house games which carry high margins and games from partner studios which enrich, diversify, and localize our roadmap. If you have specific questions about content, Ronen, Yaniv, and I are joined today by Doug Fallon, our group director of content and founder of Wall Street Gaming, who would be pleased to answer.
Matevz Mazij: In the first quarter, we released 19, new exclusive games, including seven from our proprietary <unk> Studios.
Matevz Mazij: This is up from 11 exclusive games released in the same period last year.
Matevz Mazij: Exclusive content continues to be a key pillar of our growth strategy and we balance our portfolio between in house games, which carry high margins.
Matevz Mazij: And gains from partners studios, which enrich and diversify and localize our roadmaps.
Doug Fallon: If you ask specific questions about content.
Matevz Mazij: Ronan any and I are joined today by Doug Fallon, Our group director of content and founder of Wall Street gaming would be pleased to answer.
Matevz Mazij: As I mentioned earlier, we believe that Bragg is well-placed to benefit from multiple jurisdictions on the brink of introducing or reforming iGaming regulations. Brazil is already a significant market for both our exclusive and aggregated content. And we recently hired our first dedicated account manager focused on growing our market share in what we see as one of the world's fastest growing iGaming markets today. In the United States, we still expect further regulation to open up online casino games in more states in the coming years.
Matevz Mazij: As I mentioned earlier, we believe that <unk> is well placed to benefit from multiple jurisdictions on the brink of introducing or reforming I gaming regulation.
Matevz Mazij: Brazil is already a significant market for both our exclusive and aggregated content.
Matevz Mazij: And we recently hired our first dedicated account manager focused on growing our market share.
Matevz Mazij: What we see as one of the world's fastest growing gaming markets today.
Matevz Mazij: In the United States, we still expect further regulation to open up online casino and more states in the coming years.
Matevz Mazij: This week we received official permission to conduct gaming business transactions in Delaware while our B2B license application there is being processed. So we are on track to launch games in Delaware later this year, and we will be ready for other states as and when they regulate.
Matevz Mazij: This week, we received official permission to conduct gaming business transactions in Delaware.
Matevz Mazij: Our b to B license application there is being processed.
Matevz Mazij: So we are on track to launch games and Delaware later this year.
Matevz Mazij: And we will be ready for other states as and when they regulate.
Matevz Mazij: I have mentioned that we continue to see opportunities for Bragg in multiple provinces. We can still grow in Ontario, but we also see strong interest in exclusive content, aggregated content, and player engagement technology in other provinces, opportunities that we aim to develop in the coming months. I also mentioned that we obtained our license for Peru in advance of new regulations opening up the jurisdiction to exclusive and aggregated content delivered by a Bragg hub.
Matevz Mazij: I have mentioned that we continue to see opportunities for <unk> in multiple provinces.
Matevz Mazij: We can still grow in Ontario, but we also see strong interest in exclusive content aggregated content and player engagement technology and other provinces.
Matevz Mazij: Opportunities that we aim to develop in the coming months.
Matevz Mazij: I also mentioned that we obtained our license for Peru in advance of new regulations opening up the jurisdiction to exclusive and aggregated content delivered via Brian hubs.
Matevz Mazij: Bragg is also well placed to enter the French eye gaming market when or if new legislation is introduced. We see France as a potential top five global iGaming jurisdiction in the coming years. And we have the right content and technology ready to deliver to aspiring French online casino operators. Finland is in the process of moving away from what has been a state monopoly system. And as the market opens up, we see plenty of opportunities for Bragg, including for PAM: Aggregation, Engagement, and Content Delivery. Other countries in the process of online gaming regulation that we see as having good potential for us include Poland, Chile, Argentina, South Africa, and other African jurisdictions.
Matevz Mazij: <unk> is also well placed to enter the French I gaming market when or if new legislation is introduced.
Matevz Mazij: We see France, as a potential top five global I gaming jurisdiction in the coming years.
Matevz Mazij: And we have the right content and technology ready to deliver to aspiring French online casino operators.
Matevz Mazij: Finland is in the process of moving away from what has been a state monopoly system and.
Matevz Mazij: And as the market opens up we see plenty of opportunities for <unk>, including for Pam.
Matevz Mazij: Aggregate <unk> engagement and content delivery.
Matevz Mazij: Other countries in the process of online gaming regulation that we see as having good potential for us include Poland.
Matevz Mazij: Chile, Argentina, South Africa, and other African jurisdictions.
Matevz Mazij: We are confident that we are well-placed to succeed in many of these markets because of our highly localized content and technology solutions. And we have proven before in markets such as the Netherlands that we're fast to adapt and deploy to meet new regulations, giving us a valuable first mover advantage. And so to conclude, our first quarter revenue rose 4.2% compared to the same period last year to 23.8 million euros, representing record first quarter revenue for Bragg.
Matevz Mazij: We are confident that we are well placed to succeed and many of these markets because of our highly localized content and technology solutions.
Matevz Mazij: And we have proven before in markets, such as Netherlands that were fast to adapt and deploy to meet new regulations, giving us a valuable first mover advantage.
Matevz Mazij: And so to conclude our first quarter revenue rose four 2% compared to the same period last year to $23 8 million euros.
Matevz Mazij: Representing record first quarter revenue for Brian.
Matevz Mazij: Adjusted EBIDA in the quarter was 3.4 million euros, a decrease of 12.4% against the first quarter of 2023. However, as Ronan has discussed, this is mainly an expected short-term decrease due to the renegotiation with a key partner last year. Gross profit for the first quarter of 2024 was 11.4 million euros, down 2.8% compared to the first quarter of 2023, and partially due to changes in our product mix. We completed refinancing, delivering balance sheet strength and flexibility, and we have been successful in filling key positions in our commercial and other teams, which help us deliver on our ambitious growth plan.
Matevz Mazij: Adjusted EBITDA in the quarter was $3 4 million euros, a decrease of 12, 4% against the first quarter of 2023.
Matevz Mazij: As Ron has discussed this is mainly and expected short term decrease due to renegotiation with a key partner last year.
Matevz Mazij: With trading in line with expectations, we are reiterating our full year revenue and adjusted EBITDA guidance, with ranges of 102 to 109 million euros for revenue and of 15.2 to 18.5 million euros for adjusted EBITDA. And lastly, it is worth repeating that we are encouraged by the progress made to date in advancing our strategic alternatives review process and that the board and management team continue to be 100% focused on maximizing shareholder value.
Matevz Mazij: Maximizing shareholder value.
Matevz Mazij: Thank you for listening, and I would also like to thank all of the dedicated staff at Bragg for their continued hard work and dedication this quarter. Now, I will turn the line back to the operator and Ronen, Yaniv, and Doug, and I will be happy to take questions.
Matevz Mazij: Thank you for listening and I would also like to thank all of the dedicated staff at Bragg for their continued hardwork and dedication to support it.
Speaker Change: And now I will turn the line back to the operator, and Ronan you need Doug and I will be happy to take questions.
Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via the loud speaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Please hold just one moment while we compile the roster. Your first question comes from the line of Gianluca Tucci of Haywood Securities. Your line is open. Hi morning, guys.
Speaker Change: Thank you the floor is now open for questions. If you have dialed in and we'd like to ask a question. Please press star one on your telephone keypad to raise your hand and join the queue.
Gianluca Tucci: If you would like to withdraw your question simply press Star one again.
Operator: You are called upon to ask you a question and are listening to a loudspeaker on your device. Please pick up your handset to ensure that your phone is not on mute when asking your question.
Operator: Please hold just one moment, while we compile the roster.
Gianluca Tucci: Your first question comes from the line of Jian Luka Tucci of Haywood Securities. Your line is open.
Gianluca Tucci: Hi, morning guys. Just to start off, I'm wondering if you can give us a bit of an update on how the recently signed content deals are rolling out, and global distribution deals are rolling out, and if there are others of these types of distributions with big players in the works.
Gianluca Tucci: Hi morning, guys just to start off I'm wondering if you can give us a bit of an update on how the recently signed content deals are rolling out global distribution deals are rolling out and if there are others.
Gianluca Tucci: These types of distributions with big players in the works.
Speaker Change: Hi, John Luka.
Matevz Mazij: We're rolling out proprietary content and third-party exclusive content across our network of clients in various jurisdictions, in the United States, Europe, and Latin America, and we're pleased with the performance of the content so far.
Gianluca Tucci:
Matevz Mazij: Proprietary content as a third party content across our network of clients in various jurisdictions.
Matevz Mazij: In the United States.
Matevz Mazij: In Latin America, and we're pleased with the performance of the content so far.
Matevz Mazij: Okay. And, um, for like, you know, contextual. [inaudible]
Matevz Mazij: Okay, and I'm like you know.
Matevz Mazij: For like.
Matevz Mazij: Contextual.
Matevz Mazij: Purposes, how are these like staged rollouts through these new partners or is it just they just turn on like light switch and it's available to other all of their brands globally, how can you get into that level.
Matevz Mazij: Like nuance if he can match.
Matevz Mazij: Yes, so these rollouts are largely dependent on the licensing. [inaudible] Of course, according to a certain placement and promotion plan across all the brands that certain operators operate in a certain jurisdiction. Like I said, it largely depends on the licensing, certification, or approval process in a certain jurisdiction and the marketing plan of these individual operators. But it's, it's our desire to roll it out simultaneously across. All these brands should appear in all the jurisdictions that B2C operators operate in, as that provides the maximum effect.
Speaker Change: Yeah. So these rollouts are largely dependent on the licensing.
Matevz Mazij: Procedures and approvals and certification procedures and as soon as these procedures are completed we tend to run out.
Matevz Mazij: All of our content.
Matevz Mazij: I'm, obviously, according to certain placement and promotions plan across.
Matevz Mazij: All the branch.
Matevz Mazij: Certain operators operate in a certain jurisdiction like.
Matevz Mazij: Like I said it largely depends on the on the licensing certification or approval process and circumstances addiction.
Matevz Mazij: Marketing plan of these individual operators.
Matevz Mazij: It's it's our designer to roll out.
Matevz Mazij: Simultaneously across.
Matevz Mazij: All these plans and all the jurisdictions that needs to see operators upgraded and.
Matevz Mazij: Provides maximum effect.
Matevz Mazij: Okay, thanks for the color mats. And, to the extent that you can and are able to, you did mention that the process on the strategic front is going well, but has it met your expectations thus far in terms of activity or in terms of level of interest?
Speaker Change: Oh, Okay. Thanks for the color match and I guess to the extent that you can and are able to.
Matevz Mazij: He did mention that the process on the strategic France, going well, but that hasn't met your expectations, thus far and in terms of activity or in terms of the level of interest.
Matevz Mazij: As I previously indicated, we don't plan to provide any updates on the process until we have a material development to report on.
Speaker Change: As I previously indicated we don't plan to provide any updates on the process until we have a material development to report on.
Gianluca Tucci: Okay, fair enough. Perhaps maybe a question for Ronan. Can you remind us when the loan is expected to be paid off completely, Ronan? Hey, John.
Speaker Change: Okay fair enough, perhaps maybe a question for Ronan can you remind us when the convert is expected to be paid off completely around it.
Ronen Kannor: Hey Gianluca, good morning, end of August.
John: Hey, Jonathan Moaning end.
Gianluca Tucci: <unk>.
Speaker Change: Okay. Thank you.
Jordan Bender: Your next question comes from the line of Jordan Bender of CitizenJMP. Your line is open. Good morning.
Speaker Change: Okay. Your next question comes from the line of Jordan Bender Citizen JMP. Your line is open.
Jordan Bender: Good morning, Ronen. Good luck with what comes next. You know, for my question, as you look at entering new markets, what's the bar that you're looking for to enter these? And maybe you can help us, you know, walk us through the revenue opportunities brought on by some of these incremental opportunities. You talked about France, Delaware, et cetera.
Jordan Bender: Good morning running good luck on what comes next you know for my question is you've looked at net entering new markets. What's the bar that you're looking for to enter these and maybe can you help US walk you as the revenue opportunities brought on by some of these incremental opportunities here, you talked about France, Delaware et cetera.
Jordan Bender: So the bar.
Jordan Bender: Is very different and very <unk>.
Jordan Bender: They're in different jurisdictions like I said again.
Jordan Bender: You have to go through the process of licensing and most of these jurisdictions you have to go through approvals and certification processes for your in Tech for a tech and for our confident you then have to go through the integration process with the operators.
Speaker Change: Take stock.
Jordan Bender: And.
Matevz Mazij: make sure that your roadmap is well adapted to the needs of certain operators. This is a process that is pretty standard when launching any content on any of the operators in any regulated markets. As far as the opportunity is concerned, we feel that a market like Delaware is going to grow significantly and that we are going to be one of the leading content providers in this market. I hope I have answered your question.
Jordan Bender: Make sure that your roadmap is well adapted to the needs of certain operator. This is a process that is pretty standard when launching.
Matevz Mazij: Any content on any of your uppers in any regulated markets as far as it offers opportunities concerned we feel that.
Matevz Mazij: Like it like Delaware is going to grow significantly and we are going to be.
Matevz Mazij: One of the leading content providers in this market.
Speaker Change: Can I ask you a question.
Jordan Bender: Yeah, I guess let me phrase that. You know, when you're looking at new markets, is it you look at your product roadmap, and if you see the return, you know, I guess ultimately, what I'm trying to get at here is you kind of named off several, you know, opening or newer markets. Should we think about that Bragg will be in those at some point down the line? Or is there some kind of bar you need to get over to say, you know, this is kind of worth it for us to enter these new markets?
Speaker Change: Yeah, I guess, let me rephrase that when you're looking at new markets is you look at your product roadmap.
Jordan Bender: You see the return.
Jordan Bender: Ultimately what I'm trying to get out here is you kind of name Dot C.
Jordan Bender: Several opening or newer markets or should we think about the Bragg whale b and those at some point down the line or is there some kind of bar you need to get over to say you know this is kind of worth it for us to enter these new markets.
Matevz Mazij: Bragg is going to be in those markets when and if those markets are fully regulated. Um... We don't have an exact timeline, but we believe that further regulation is going to happen.
Jordan Bender: Nebraska is going to be in those markets went into those markets are fully regulated.
Matevz Mazij:
Matevz Mazij: We don't have an exact timeline, but we believe that.
Matevz Mazij: Or regulation is going to happen.
Matevz Mazij: In Europe.
Matevz Mazij: And we are going to be...
Matevz Mazij: And then we are going to be a supplier of tech two operators in those markets and supplier of content as well.
Matevz Mazij: are going to be a supplier of tech to operators in those markets and a supplier of content as well.
Jordan Bender: And then just based on what you know for the upcoming launches, or I guess, you know, let's just say 12 to 24 months, should the gross margin structure or your revenue mix look pretty consistent within those new markets, kind of like your total portfolio looks like today?
Speaker Change: Understood. Thank you and then just based on what email for the upcoming launches or I guess, you know, let's just say 12 to 24 months you should the gross margin structure or your revenue next looked pretty consistent within those new markets kind of of what your total portfolio looks like today.
Speaker Change: Yes, but we do expect a change in the product mix and we expect to.
Matevz Mazij: Yes, but we do expect a change in the product mix. And we expect to aggressively monetize our content portfolio in existing markets and in newly regulated markets, which should increase our margins in the future.
Jordan Bender: Aggressively monetize our content portfolio in existing markets and in newly regulated markets, which should increase our margin in the future.
Speaker Change: [noise] understood. Thank you very much.
Jordan Bender: I understand. Thank you very much.
Speaker Change: Thank you.
Sid Dilawari: Your next question comes from the line of Sid Dilawari of Cormac Securities. Your line is open.
Cormac Securities: Your next question comes from the line of <unk> of Cormac Securities. Your line is open.
Sid Dilawari: Hey, good morning. First of all, if I can just focus on margins here, you know, we saw some compression, and I think it was nothing that us on the street didn't expect. Just given that the compression began in Q4, should we expect a similar level of margin compression through Q2 and Q3? And then, just a follow-up to that, do you see any near-term opportunities related to your PAM or Madish services within the Netherlands to replace some of that lost revenue? with Pat City.
Sid Dilawari: Hey, good morning, Firstly, if I can just focus on margins here you know we fill out some compression on that thing there was nothing that us on the street didn't expect given that just given that the compression began in Q4 should we expect similar level of margin compression through Q2, and Q3 and then just fall.
Sid Dilawari: Oh up to that do you <unk> do you see any near term opportunities.
Sid Dilawari: To your pad or a matter of services with a metal is to replace some of that lost revenue with with that city.
Sid Dilawari: Okay.
Matevz Mazij: So we have a very strong pipeline of clients, the segment of Turnkey Solutions, which includes managed services, NPAM, and aggregation, obviously, third-party and proprietary content, in existing jurisdictions and in what is expected to be a newly regulated European market and Latin American market, and we believe that we are going to be able to report back on deals in the next 12-24 months that are going to include, like I said,
Sid Dilawari: So we have a very strong pipeline of clients.
Matevz Mazij: In the.
Matevz Mazij: The segment of turnkey solutions, which includes managed services and Pam.
Matevz Mazij: An aggregation noisy.
Matevz Mazij: Body and proprietary content.
Matevz Mazij: In existing jurisdictions and in what is expected to be a newly regulated European market and Latin American market.
Matevz Mazij: And we believe that we are going to be able to report back on deals.
Matevz Mazij: <unk> in the next.
Matevz Mazij: 12 to 24 months.
Matevz Mazij: Are going to include like I said.
Matevz Mazij: Both Managed Services and Dick Stock.
Matevz Mazij: Both managed services and.
Matevz Mazij: tech stack and content, and I will let Ronen respond to your questions about compressed margins.
Matevz Mazij: <unk> and content and I will let ronan respond to your questions about the compressed margins.
Matevz Mazij: Mmm.
Ronen Kannor: Ronen. I said morning. Good morning. Hi.
Ronen Kannor: Vernon I think money good morning.
Ronen Kannor: So as we communicating and crazy.
Ronen Kannor: So as we were communicating and, you know, creating updates and several conversations, the margins relatively dropped because of the re-trade of the deal with Bat City. But we're expecting during the next couple of quarters to increase our managed services to PAM with the aggressive pipeline as Matt indicated earlier. That will improve our margins. And while we will be more focused on our proprietary content, which is currently progressing very well, while that hits a particular threshold, I think the margin will scale up in the right direction. We've always said that our margins are going to improve by the end of 2025. And we're heading in that direction.
Ronen Kannor: Trading update and several conversations.
Ronen Kannor: The margins relatively because of the trade off the deal with the best City and but we expecting during the next couple of quarters to increase <unk> with the aggressive pipeline is madson indicated earlier.
Ronen Kannor: That will improve the margin and while we will be more focused on Apple <unk> currently the progressing very well.
Ronen Kannor: Was that the hate the particular threshold I think the mother will scale up to the right direction. We always said that the emergence go ahead and pull by the end of 2025 were heading towards the direction. The compositional revenue incontinence higher than the payment minutes services at this stage, but second quoted that fall within the next year.
Ronen Kannor: The composition of revenue and content is higher than the permanent services at this stage. But second quarter, third, fourth, and next year, we will see the impact and the effect, the positive impact, sorry, on the effect of those spam customers and proprietary content, whose every dollar contribution has a material effect on your gross profit and adjusted EBITDA. So, yes, there is going to be an effect, but it's over time. I would look at the first quarter, second quarter 2025, and we'll see the margins changing significantly towards improving margin both on gross profit and just dividend.
Ronen Kannor: See the impact and the effect with a positive impact on there.
Ronen Kannor: Oh, those spam customers and proprietary content, which every dollar contribution have a material effect on your gross perfectly adjusted EBITDA. So, yes, there's going to be effective at it over time.
Ronen Kannor: I would look at the the first quarter of second quarter 2025, and it will see the margins are changing significantly towards.
Ronen Kannor: Improve much in Boston gross profit interested either.
Matevz Mazij: And to add to that, sorry, I will just add to my answer, so... We believe that we're perfectly placed to add clients in both existing markets and to win clients in what is going to be a newly regulated group of jurisdictions both in Europe and the United States and Latin America. And we are technically ready to deploy, meaning we have the product, we have the solutions, both on the tech side, and we're perfectly placed to roll out content in all of these new jurisdictions, both from a proprietary portfolio and third-party portfolio. There are no significant changes that we would have to make to our portfolio in order to be leading the process of supplying these stacks to clients that are going to operate in those jurisdictions.
Speaker Change: To add to that so I will just.
Matevz Mazij: Add to my password before so.
Matevz Mazij: We believe that we're perfectly placed to add clients in both existing markets and to win clients and what is going to be a newly regulated.
Matevz Mazij:
Matevz Mazij: Jurisdictions, both in Europe.
Matevz Mazij: Nine states in Latin America.
Matevz Mazij: And we are.
Matevz Mazij: Technically ready to deploy.
Matevz Mazij: And we have the product we have the that the solutions both on the tech side and went perfectly placed.
Matevz Mazij: Pull out content in all of these new Jersey <unk>.
Matevz Mazij: Both of them are proprietary portfolio and third party portfolio. There are no significant changes that we would have to make to our portfolio in order to be leading.
Matevz Mazij: Needing the the the process of supplying these stocks two clients that are going to upgrade symptoms jurisdictions.
Sid Dilawari: Max, could I get your color on the regular market conditions in the Netherlands? We've been seeing a lot of announcements from the regulators. Are you seeing an impact on your customer base and the wagering activity just based on that just yet, or do you think anything material comes out of those regulatory announcements, and how do you sort of see that market evolving this year?
Speaker Change: Got it. Thanks, just maybe if I can just back just if I can get your color on the regular market conditions in the Netherlands, we've been seeing a large vanilla <unk> from the regulators are you see an impact and your customer base and the wagering activity.
Sid Dilawari: Uhm just based on that just yet or do you think anything material. It comes out of those regulatory knows redfin how're, you sort of see that market involving this year.
Matevz Mazij: We believe that it's very difficult to expect that the regulator will go back to square one and ban Slots, only three years after they have regulated the market. And we have seen the first set of restrictions being implemented last year, and we are seeing certain effects on wagering in, you know, in our portfolio of B2C operators, a negative effect on the
Max: We believe that is very difficult to expect that.
Matevz Mazij: Regulator will.
Matevz Mazij: Go back to square, one and will.
Matevz Mazij: Ben.
Matevz Mazij: Uhm slots.
Matevz Mazij: Only three years after they have.
Matevz Mazij: Regulated the market.
Matevz Mazij: And we have seen for <unk> for Senator restrictions being implemented last year, and we are seeing certain effect.
Matevz Mazij: To to a dream.
Matevz Mazij: You know get off the phone you'll be <unk> negative effect on me.
Sid Dilawari: And then just one last one for me. You highlighted Peru. Can you maybe sort of touch on this market opportunity, maybe just in terms of TAM, the existing gray market there, and how that sort of stacks up against the Dutch market like three years ago or any of the newly regulated markets that you've entered in the past?
Speaker Change: Got it.
Speaker Change: And then just one last one for me you highlighted Peru can you just made me sort of ketchup in this market opportunity maybe just in terms of time, the existing gray market there and.
Sid Dilawari: How that sort of stacks up against the Dutch market like three years ago or any of the newly regulated market that you entered in the past.
Matevz Mazij: So we expect the market to grow. It is a decent market, and We obviously do not have the data on the TAM in Peru because it has been a gray market so far. And like I said, we expect to be going live with a number of clients in Peru as a content provider and as an aggregator.
Sid Dilawari: So we expect the market to grow.
Matevz Mazij: It has a decent market and we.
Matevz Mazij: We.
Matevz Mazij: Obviously do not have the data after time, because it was a great market.
Matevz Mazij: So far and like I said, we <unk>.
Matevz Mazij: Expect to be coin live with a number of lines <unk> as a content provider and as an aggregator.
Jack Vander Aarde: Your next question comes from the line of Jack Codera of Maxim Group. Your line is open.
Matevz Mazij: Your next question comes from the line of Jack Caldeira of Maxim Group is open.
Jack Vander Aarde: Thank you. I'm calling in on behalf of Jack Bender, Aarde. I wanted to touch on new title releases, so 19 new titles in one queue, and I think in the slides it says you're on track for 17 in two queues. I was wondering, can you provide any additional color on the cadence of these releases for the remainder of the year, and what gives you confidence in that? Thank you.
Jack Vander Aarde: Thank you I'm, calling in for Jack Vedra already I wanted to touch on new releases. So 19, new titles Q1and I think in the slides. It says you're on track for 72 Q I was wondering can you provide any additional color.
Jack Vander Aarde: <unk> releases for like the remainder of the year, that's kind of what gives you confidence that thank you.
Doug Fallon: Thank you for your question. I will let Doug answer your question. Hi.
Speaker Change: Thank you for your question I will <unk> dog answered Christian.
Doug Fallon: Yeah, look, title releases are also impacted by regular approvals, and so we're actually adjusting our release schedule based on the strategic value we see of when to bring the right games to the market. Some are seasonal by nature as well. We expect to refine that cadence, but we're launching quite a significant number of titles the remainder of this year on both the partner side as well as the aggregation side of proprietary content.
Doug Fallon: Alright. Thank you yeah. The title releases are also impacted by regular approvals.
Doug Fallon: And so we're actually jesting I really scheduled based on the strategic value, we see a wonder bring the right games to the market summer seasonal by <unk> by nature as well.
Doug Fallon: Some thought we expect to refine that parents, but we're we're launching quite a significant number of titles Sparrow Andrew this year.
Doug Fallon: I'm, both the partner side as well as the application side or the proprietary content. So it really boils down to.
Doug Fallon: So it really boils down to some timing issues when we report quarterly. Like there are some titles where they get released, you know, in the last days of the quarter, beginning of the next quarter. So the numbers, even though they're only a week away, can skew slightly when you look at that big picture.
Doug Fallon: Some timing issues, one way report accordingly.
Doug Fallon: There is some titles were they get released last days of the quarter beginning of the next corner. So though the numbers even though they are only a week away can skew slightly when you look at that big picture.
Jack Vander Aarde: Okay, that's a helpful call. Thank you.
Speaker Change: Okay that could be helpful color.
Yaniv Spielberg: That concludes our Q&A session. I will now turn the conference back over to Yaniv Spielberg for closing remarks.
Speaker Change: That concludes our Kunai session I will now turn the conference back over to you and if Spielberg for closing remarks.
Yaniv Spielberg: Thank you, everyone. I'd like to thank everybody who joined us this morning. I'd like to, as Matt already did, thank all the Bragg team for putting this all together and for another great quarter. And, of course, I'd like to thank Ronen for all these years at Bragg, and we wish him the best of luck and success in his future endeavors. We will chat soon about our Q2 presentation, but until then, have a great day.
Yaniv Spielberg: Thank you everyone I'd like to thank everybody, who joined US. This morning I'd like to do is mats already did thank all the brown team for putting this altogether or another great quarter and of course I'd like to thank ronin for all these years abroad, and we wish and best of luck and success in his future endeavors.
Yaniv Spielberg: <unk> Q2 presentation, but until then have a great day.
Operator: This concludes today's conference call. You may now disconnect.
Speaker Change: This concludes today's conference call you may now disconnect.
Operator: [music].