Q2 2024 Bragg Gaming Group Inc Earnings Call

August 8, 2024

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Operator: On this call, there will be a review of Bragg's financial and operating results for the second quarter of 2024. Following these prepared remarks, the conference call will be opened to a question and answer period. Before we get started, I have some brief cautionary remarks regarding certain statements that may be made on this call. Certain statements made on this conference call and the responses to various questions may constitute forward-looking information or future-oriented financial information within the meaning of applicable securities laws.

JL: My name is JL, and thank you for joining the second quarter of 2024 earnings conference call for Bragg Gaming. Shortly, I'll hand the call over to Bragg Gaming Group's CEO, Matevz Mazij, who will comment on Bragg's second quarter performance, and Bragg's interim CFO, Robby Bressler, who will review and discuss the company's second quarter financial results. If you have not already done so, you can follow the earnings call presentation from Bragg's investor website at investors.bragg.group. That's investors plural with an S. Then go to the events and presentations section. On this call, there will be a review of Bragg's financial and operating results for the second quarter of 2024. Following these prepared remarks, the conference call will be opened to a question and answer period.

J.L.: Good morning, everyone. My name is J.L., and thank you for joining the second quarter of 2024 earnings conference call for Bragg Gaming Group.

Speaker Change: Shortly, I'll hand the call over to Bragg Gaming Group's CEO , Matevz Mazij, who will comment on Bragg's second quarter performance, and Bragg's interim CFO , Robby Bressler, who will review and discuss the company's second quarter financial results.

Speaker Change: If you have not already done so, you can follow the earnings call presentation from Bragg's investor website at investors.bragg.group That's investors plural with an S, then go to the events and presentations section

Speaker Change: On this call, there will be a review of Bragg's financial and operating results for the second quarter of 2024. Following these prepared remarks, the conference call will be opened to a question and answer period.

JL: Before we get started, I have some brief cautionary remarks regarding certain statements that may be made on this call. Certain statements made on this conference call and the responses to various questions may constitute forward-looking information or future-oriented financial information within the meaning of applicable securities laws. 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 company and its subsidiaries and their respective customers and industries.

Operator: 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 company and its subsidiaries and their respective customers and industries. While the company believes these assumptions to be reasonable, they are subject to a number of risks, uncertainties, and other factors which may be, are outside of the company's control, and which could cause the actual results, performance, or achievements of the company to be materially different. There can be no assurance that these assumptions or estimates are accurate or that any of these expectations will prove to be correct.

Speaker Change: Before we get started, I have some brief cautionary remarks regarding certain statements that may be made on this call.

JL: While the company believes these assumptions to be reasonable, they are subject to a number of risks, uncertainties, and other factors which may be outside of the company's control and which could cause the actual results, performance, or achievements of the company to be materially different. There can be no assurance that these assumptions or estimates are accurate or that any of these expectations will prove to be correct. For a complete discussion of these risk factors, please refer to Bragg Gaming Group's recently filed press release and other publicly available disclosures.

Speaker Change: certain statements made on this conference call and the responses to various questions may constitute forward-looking information or future oriented financial information within the meaning of applicable securities laws

Speaker Change: 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.

Speaker Change: 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 company and its subsidiaries and their respective customers and industries.

Speaker Change: While the company believes these assumptions to be reasonable, they are subject to a number of risks, uncertainties, and other factors, which may

Speaker Change: are outside of 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 assurance that these assumptions or estimates are accurate or false.

Matevz Mazij: For a complete discussion of these risk factors, please refer to Bragg Gaming Group's recently filed press release and other publicly available disclosures. Good morning, everyone. Good morning, everyone. My name is Matevz Mazij.

Speaker Change: that any of these expectations will provide, will prove to be correct.

Speaker Change: For a complete discussion of these risk factors, please refer to Bragg Gaming Group's recently filed press release and other publicly available disclosure.

Matevz Mazij: Good morning, everyone. My name is Matevz Mazij.

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 second quarter of 2024. Then I'm going to pass the line over to Robbie Bressler, our interim CFO, who joined us during the second quarter and who will take you through the company financials.

Speaker Change: Good morning, everyone.

Matevz Mazij: Good morning, everyone. My name is Matevz Mazij. I'm chairman and CEO of Bragg.

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 second quarter of 2024. Then I'm going to pass the line over to Robbie Bressler, our interim CFO, who joined us during the second quarter and 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, and we'll then open up the call to your questions.

Speaker Change: on this call i'm going to make some initial comments and i'll run through some key operational highlights from the second quarter of two thousand and twentyfour

Robbie Bressler: Then I'm going to pass the line over to Robbie Bressler, our Interim CFO , who joined us during the second quarter and who will take you through the company financials.

Matevz Mazij: 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, and we'll then open up the call to your questions. Turning now to Recent Operational Highlights. As you are no doubt aware, in the first quarter of 2024, we convened a board-run special committee to review possible strategic alternatives for Bragg, including a potential sale, merger, acquisition, or additional investment into the business.

Robbie Bressler: after our financial recap

Robbie Bressler: i'll be talking more about some main strategic and operational focus area before wrapping up with our outlook and summary and willll then open up the call to your questions

Matevz Mazij: As you are no doubt aware, in the first quarter of 2024, we convened a board-run special committee to review possible strategic alternatives for Bragg, including a potential sale, merger, acquisition, or additional investment into the business. This process is still ongoing and comes against the backdrop of increased M&A activity in the iGaming sector, activity which has driven additional interest in Bragg Gaming. I want to reiterate that the board will not provide any further updates on the process until we have a material development to report on.

Robbie Bressler: Turning now to Recent Operational Highlights.

Robbie Bressler: As you are no doubt aware, in the first quarter of 2024, we convened a board-run special committee to review possible strategic alternatives for BRAC.

Robbie Bressler: including a potential sale, merger, acquisition or additional investment into the business.

Matevz Mazij: This process is still ongoing and comes against the backdrop of increased M&A activity in the iGaming sector, activity which has driven additional interest in Bragg Gaming. I want to reiterate that the board will not provide any further updates on the process until we have a material development to report on.

Robbie Bressler: This process is still ongoing and comes against the backdrop of increased M&A activity in the iGaming sector, activity which has driven additional interest in Bragg.

Robbie Bressler: I want to reiterate that the board will not provide any further updates on the process until we have a material development to report on.

Matevz Mazij: In the meantime, management continues to focus on business growth, delivering on strategic objectives, and maintaining our utmost commitment to clients and business partners alike. The company continues to be well positioned to capitalize on opportunities across iGaming content and technology globally. During the second quarter, we announced the appointment of Robbie Bressler, who joins us on the call today as Interim Chief Financial Officer.

Matevz Mazij: In the meantime, management continues to focus on business growth, delivering on its strategic objectives, and maintaining our utmost commitment to clients and business partners alike. The company continues to be well positioned to capitalize on opportunities across iGaming content and technology globally. During the second quarter, we announced the appointment of Robby Bressler, who joins us on the call today as Interim Chief Financial Officer.

Robbie Bressler: In the meantime, management continues to focus on business growth, delivering on its strategic objectives and maintaining our utmost commitment to clients and business partners alike.

Matevz Mazij: Robby has a wealth of experience across the iGaming and financial services industries, including from his time at Bally's Corporation and Ernst & Young. In May, we announced that Neal White, formerly of Digital Gaming Corporation, or DGC, joined us in the capacity of Chief Commercial Officer in order to lead the next stage of growth at Bragg. Neal is joined by Garrick Morris, also previously of BGC, as Senior Vice President for Commercial for the U.S. and Canada, to drive the U.S. rollout forward, something I will talk more about in today's presentation.

Robbie Bressler: the company continues to be well placed to capitalize on opportunities across i gaming content and technology globally

Matevz Mazij: I can also announce that we have recently bolstered our legal team and completed our executive leadership team with the appointment of experienced iGaming industry lawyer, Tomasso Di Chia, as our chief legal and compliance officer. I welcome Robby, Neal, Garrick, and Tommaso to the team, and after Robby has taken you through our second quarter financial results, I will take a moment to give you a snapshot of the highly experienced executive leadership we have now in place, ready to deliver the next stage of Bragg growth and to support any outcome of the strategic review.

robby breler: during the second quarter we announced the appointment of robby breler who joins us on the call today as intern chief financial officer

Robbie Breler: Robbie has a wealth of experience across the iGaming and financial services industries including from his time at Bally's Corporation and Ernst & Young.

Speaker Change: In May, we announced that Neal White, formerly of Digital Gaming Corporation, or DGC, joined us in the capacity of Chief Commercial Officer in order to lead the next stage of growth at Bragg.

Speaker Change: Neal is joined by Garrick Morris, also previously of BGC, as Senior Vice President for Commercial for U.S. and Canada, to drive the U.S. rollout forward, something I will talk more about in today's presentation.

Matevz Mazij: I can also announce that we have recently bolstered our legal team and completed our executive leadership team with the appointment of experienced iGaming industry lawyer Tomasso Di Chia as our chief legal and compliance officer. I welcome Robby, Neal, Garrick, and Tommaso to the team, and after Robby has taken you through our second quarter financial results, I will take a moment to give you a snapshot of the highly experienced executive leadership we have now in place, ready to deliver the next stage of Bragg growth and to support any outcome of the strategic review.

Speaker Change: I can also announce that we have recently bolstered our legal team and completed our executive leadership team with the appointment of experienced iGaming industry lawyer, Tommaso Di Chio, as our Chief Legal and Compliance Officer.

Speaker Change: i welcome rorevenue garrickon to master to the team and after robby has taken you to our second quarter financial results

Speaker Change: i will take a moment to give you a natsho of the highly experienced expective leadership we have now in place rates to delivever the next stage of br growth and to support any outcome of the strategic period

Matevz Mazij: Turning to our rollout across the United States, we've capitalized on our existing relationship with customers by expanding into new states, most notably Pennsylvania, where we recently announced that we launched our newest iGaming content and technology with BetMGM and Borgata. We are also pleased to announce at the end of the second quarter that we launched with FanDuel, the local market leader, as well as with international bookmaker BET365, also in We're also pleased to announce that we've recently expanded our relationship with Golden Nugget to New Jersey.

Speaker Change: Turning to our rollout across the United States, we've capitalized on our existing relationship with customers by expanding into new states, most notably Pennsylvania.

Speaker Change: where we recently announced that we launched our newest i gave content and technology with bed mgm and bgada

Speaker Change: We are also pleased to announce at the end of the second quarter we've launched with FanDuel, the local market leader, as well as with international bookmaker Bet365, also in Pennsylvania.

Speaker Change: we're also pleased to announce that we've recently expanded our relationship with called the nug into new jersey and after robby has presented the financials i will show you what all this means for our distribution reach in north america

Matevz Mazij: And after Robby has presented the financials, I will show you what all this means for our distribution reach in North America. Over the quarter, we've seen excellent growth in adoption of our player account management technology, notably in the Czech Republic, where Bragg was able to conclude an agreement with King's Bet for our full-service turnkey solution. Kingsbet is our second customer in the country and is already seeing positive growth following its launch. In the Netherlands, our biggest market, we added our sixth PAM customer, HardRockCasino.nl, and Adhir, which included content aggregation and managed services provision. Hard Rock is an internationally known and recognizable brand, and to be powering their Dutch expansion is something we're very proud to support.

Speaker Change: over the quarter we've seen excellent growth in adoption of our player account management technology notably in check republic for brack was able to conclude an agreement with king's bet for our full service during key solution

Speaker Change: kings bet becomes our second p customer in the country and is already seeing positive growth following its launch

Speaker Change: In the Netherlands, our biggest market, we added our 6th FAM customer in HardRockCasino.nl

Speaker Change: in a deal which included content aggregation and managed services provision

Speaker Change: Hard Rock is an internationally known and recognizable brand and to be powering their Dutch expansion is something we are very proud to support.

Matevz Mazij: Returning to the Dutch market, over the quarter, we powered the sportsbook launches of three of our existing PAM clients in the Netherlands, as they look to take advantage of the UEFA European Championship football tournament. The first of these launches was the metric gaming sportsbook with betnation.nl. A deal achieved through the extension of our existing turnkey relationship with a Dutch-licensed operator. Since this initial launch, we've concluded similar deals to launch the Metric Gaming Sportsbook with ComeOn.nl following their Sportsbook License Award, and we have also launched the Canby Sportsbook with 711.nl, a valued PAM customer of Bragg. We're very excited about the potential of these new sportsbook partners and the way they allow us to enhance our existing relationships with SternKey and Banff Lions by adding a new vertical. Drawing on this

Matevz Mazij: Returning to the Dutch market, over the quarter, we powered the sportsbook launches of three of our existing PAM clients in the Netherlands, as they look to take advantage of the UEFA European Championship football tournament. The first of these launches was the metric gaming sportsbook with betnation.nl, a deal achieved through the extension of our existing turnkey relationship with the Dutch licensed operator. Since this initial launch, we've concluded similar deals to launch the Metric Gaming Sportsbook with ComeOn.nl following their Sportsbook License Award and have also launched the Canby Sportsbook with 711.nl, a valued PAM customer of Bragg. We're very excited about the potential of these new sportsbook partners and the way they allow us to enhance our existing relationships with SternKey and Banff Lions by adding a new vertical. Drawing on this,

Speaker Change: returning to the dutch market over the quarter we powered the sport book laches of three of our existing pam client in the netherlands

Speaker Change: as they look to take advantage of the u fa european championship footpotournament

Speaker Change: the first of these launches was of the metric gaming sports brored best nation of nl

Speaker Change: A deal achieved through the extension of our existing turnkey relationship with a Dutch licensed operator.

Speaker Change: since d initial launch we've concluded similar deals to launch the metric gaming sports book would come on up nl

Speaker Change: following their Sportsbook License Award and have also launched the Canby Sportsbook with 7-Eleven.NL, a valued PAM customer of Bragg.

Speaker Change: We're very excited about the potential of these new sportsbook partners and the way they allow us to enhance our existing relationships with SternKey and BAM clients by adding a new vertical.

Matevz Mazij: Throughout the quarter, we've continued to develop and distribute our innovative and exclusive content globally, launching 17 new exclusive games during the period. We've expanded the global distribution of our online casino content with Light & Wonder, giving us crucial exposure across regulated markets. And in Italy, we've partnered with Seaside to launch in what is Europe's second largest iGaming market. Now, once Ravi has taken you through the financial results, I will come back to discuss some of these points in more detail before we open the line to your questions.

Matevz Mazij: Throughout the quarter, we've continued to develop and distribute our innovative and exclusive content globally, launching 17 new exclusive games during the period. We've expanded the global distribution of our online casino content with Light & Wonder, giving us crucial exposure across regulated markets. And in Italy, we've partnered with Seaside to launch in what is Europe's second largest iGaming market. Now, once Robby has taken you through the financial results, I will come back to discuss some of these points in more detail before we open the line to your questions. Robby?

Speaker Change: drawing on this throughout the quarter we've continued to develop and distribute are innovative and exclusive content globally launching seventeen new exclusive gains during the period

Speaker Change: We've expanded the global distribution of our online casino content with Light and Wonder, giving us crucial exposure across regulated markets. And in Italy, we've partnered with Seaside to launch in what is Europe's second largest iGaming market.

Speaker Change: Now, once Robby has taken you through the financial results, I will come back to take some of these points in more detail before we open the line to your questions.

Matevz Mazij: Robby?

Robert Bressler: Thank you, Matt, and good morning to everybody. It's been great to be a part of the Bragg team for this short time. I'm looking forward to engaging with our analysts and shareholders in my new role. Being part of a growing company that is active in over 30 regulated jurisdictions with a best-in-class product mix and growing coverage of the North American markets is extremely exciting, and I'm looking forward to being part of this success story.

Robby Bressler: Thank you, Matt. And good morning to everybody.

Speaker Change: Robbie

robby breler: Thank you, Matz, and good morning to everybody. It's been great to be a part of the Bragg team for this short period, and looking forward to engaging with our analysts and shareholders in my new role.

Robby Bressler: It's been great to be a part of the Bragg team for this short period and I'm looking forward to engaging with our analysts and shareholders in my new role. Being part of a growing company that is active in over 30 regulated jurisdictions with a best-in-class product mix and growing coverage of the North American markets is extremely exciting, and I'm looking forward to being part of this success story. Jumping into Q2 results, total revenue for the second quarter was €24.9 million, a record high, up 0.5% compared to Q2 2023.

Robbie: being part of a growing company that is active in over thirty-regulated jurisdictions with the best-in-class product mix and growing coverage of the north american markets is extremely exciting and i'm looking forward to being part of this success story

Robert Bressler: Jumping into Q2 results, total revenue for the second quarter was €24.9 million, a record high, up 0.5% compared to Q2 2023. As expected, gross profit and EBITDA were down compared to the second quarter of last year. Q2 2024 gross profit decreased by 10% to 12.4 million euros, with gross profit margins decreasing to 49.9%. Adjusted EBITDA for the quarter was down 24% to €3.6 million, and our adjusted EBITDA margin decreased to 14.5%.

Speaker Change: Jumping into Q2 results, total revenue for the second quarter was €24.9 million, a record high, up 0.5% compared to Q2 2023.

Robby Bressler: As expected, gross profit and EBITDA were down compared to the second quarter of last year. In Q2 2024, gross profit decreased by 10% to 12.4 million euros, with gross profit margins decreasing to 49.9%. Adjusted EBITDA for the quarter was down 24% to €3.6 million, and our adjusted EBITDA margin decreased to 14.5%.

Speaker Change: as expected gross profit and ebitda were down compared to second quarter of last year q two two thousand and twenty-four ggrowross profit decreased by ten percent to twelve point four million euro with gross profit margins decreasing to forty-nine point nine percent

Robbie: Adjusted EBITDA for the quarter was down 24% to 3.6 million euro and our adjusted EBITDA margin decreased to 14.5%.

Robert Bressler: While gross profit and adjusted EBITDA were down year-over-year as expected due to changes in our product mix, we are encouraged to see sequential growth in revenue, gross profit, and adjusted EBITDA compared to the first quarter of this year, a time frame in which our product mix has been consistent. We expect to see this growth continue through the second half of 2024 and are reiterating our full-year revenue and adjusted EBITDA guidance at 102 to 109 million euros and 15.2 to 18.5 million euros, respectively, noting that we are currently tracking to the lower end of the guidance ranges provided.

Robby Bressler: While gross profit and adjusted EBITDA were down year-over-year as expected due to changes in our product mix, we are encouraged to see sequential growth in revenue, gross profit, and adjusted EBITDA compared to the first quarter of this year, a time frame in which our product mix has been consistent. We expect to see this growth continue through the second half of 2024 and are reiterating our full year revenue and adjusted EBITDA guidance at 102 to 109 million euros and 15.2 to 18.5 million euros, respectively. Noting that we are currently tracking to the lower end of the guidance ranges provided.

Robbie: While gross profit and adjusted EBITDA were down year over year as expected due to changes in our product mix, we are encouraged to see sequential growth in revenue, gross profit, and adjusted EBITDA compared to the first quarter of this year, a time frame in which our product mix has been consistent.

Robbie: We expect to see this growth continue through the second half of 2024 and are reiterating our full-year revenue and adjusted EBITDA guidance at 102 to 109 million euro and 15.2 to 18.5 million euro, respectively.

Robbie: noting that we are currently tracking to the lower end of the guidance ranges provided.

Robby Bressler: As noted on slide 7, in Q2 2024, revenue from content represented 80% of total revenue, while in Q2 2023, total content revenue represented 77%. PAM and turnkey revenue, however, declined as a percentage of total revenue, going from 23% in Q2 2023 to 20% of total revenue in Q2 2024. Proprietary content and exclusive third-party content total revenue increased by 12% since Q2 2023, with notable positive momentum in the U.S. Proprietary content deployment is progressing well in both the US and EU markets through increased distribution and game performance. These changes in product mix have resulted in reduced gross profit and adjusted EBITDA.

Robert Bressler: As noted on slide 7, in Q2 2024, revenue from content represented 80% of total revenue, while in Q2 2023, total content revenue represented 77%. PAN and turnkey revenue, however, declined as a percentage of total revenue, going from 23% in Q2 2023 to 20% of total revenue in Q2 2024.

Robbie: As noted on slide 7, in Q2 2024, revenue from content represented 80% of total revenue, while in Q2 2023, total content revenue represented 77%.

Robbie: Pan and Turnkey revenue, however, declined as a percentage of total revenue going from 23% in Q2 2023 to 20% of total revenue in Q2 2024.

Robert Bressler: Proprietary content and exclusive third-party content total revenue increased by 12% since Q2 2023, with notable positive momentum in the U.S. Proprietary content deployment is progressing well in both the US and EU markets through increased distribution and game performance. These changes in product mix have resulted in reduced gross profit and adjusted EBITDA.

Robbie: Proprietary content and exclusive third-party content total revenue increased by 12% since Q2 2023 with notable positive momentum in the U.S.

Robbie: Proprietary content deployment is progressing well in both the U.S. and EU markets through increased distribution and game performance.

Robbie: These changes in product mix have resulted in reduced gross profit and adjusted EBITDA. However, as mentioned, we are pleased to see consistent growth from Q1 to Q2 in 2024 where product mix was consistent.

Robert Bressler: However, as mentioned, we are pleased to see consistent growth from Q1 to Q2 in 2024, where product mix was consistent. Revenue is up 4.4% from Q1 2024, and gross profit and adjusted EBITDA are up 4.4% and 6%, respectively. Turning to the balance sheet, as of June 30, 2024, we held 10.8 million euros in cash and cash equivalents. During the quarter, we obtained a $7 million USD secured promissory note from a related party that bears interest at an annual rate of 14% payable quarterly.

Robby Bressler: However, as mentioned, we are pleased to see consistent growth from Q1 to Q2 in 2024, where product mix was consistent. Revenue is up 4.4% from Q1 2024, and gross profit and adjusted EBITDA are up 4.4% and 6%, respectively. Turning to the balance sheet, as of June 30, 2024, we held 10.8 million euros in cash and cash equivalents. During the quarter, we obtained a $7 million USD secured promissory note from a related party that bears interest at an annual rate of 14% payable quarterly.

Robbie: revenue was up four point four percent which to one two thousand and twenty four and gross profit and adjusted ebitda are up four point four percent and six percent respectively

Robbie: Turning to the balance sheet.

Robbie: As of June 30, 2024, we held €10.8 million in cash and cash equivalents.

Robbie: during the quarter we obtained a seven million u sd secured commissary note from our related party that bears interested in annual rate of fourteen percent payable quarterly

Robert Bressler: Funds are being used to provide us with maximum financial flexibility as we continue to progress through the strategic review process. I can confirm that, post-quarter end, the remaining outstanding LIN convertible debt of $1,000,000 USD has now been settled in full in cash.

Robby Bressler: Funds are being used to provide us with maximum financial flexibility as we continue to progress through the strategic review process. I can confirm that, post-quarter end, the remaining outstanding LIN convertible debt of $1,000,000 USD has now been settled in full in cash.

Robbie: Funds are being used to provide us maximum financial flexibility as we continue to progress through the strategic review process.

Robbie: I can confirm that post-quarter-end, the remaining outstanding LIN convertible debt of $1 million USD has now been settled in full in cash.

Robert Bressler: Networking capital, excluding deferred consideration, convertible debt, and promissory note as of June 30, 2024, amounted to 10.5 million euros compared to 5.1 million euros at the beginning of the year. I will now hand over the call back to Matt to continue with commentary on strategy and operations. Thank you, Robbie.

Speaker Change: networking capital excluding deferred consideration convertible debt and promisaryy note as of june thirtieth two thousand and twenty four amounted to ten point five million euro compared to five point one million euros at the beginning of the year

Robbie: I will now hand over the call back to Matz to continue with commentary on strategy and operations.

Matevz Mazij: Now, on the next slide, I want to give you a snapshot of who Bragg is and what we're trying to achieve as a business. Bragg began life in 2018 when it acquired an iGaming technology business that I originally founded back in 2012 called Oryx Gaming. Since 2018, Bragg has secured both a listing on the NASDAQ Stock Market and the Toronto Stock Exchange.

Matz: thank you robbyie

Matz: Now, in the next slides, I want to give you a snapshot of who Bragg is and what we're trying to achieve as a business.

Matevz Mazij: Bragg began life in 2018 when it acquired an iGaming technology business that I originally founded back in 2012 called Oryx Gaming. Since 2018, Bragg has secured both a listing on the NASDAQ Stock Market, We're an internationally focused business with offices around the world, and we have more than 450 employees spread across these offices. Bragg as a business is licensed, certified, and otherwise compliant in its operations as a supplier of iGaming content and technology solutions in more than 30 regulated jurisdictions globally.

Matz: Bragg began life in 2018 when it acquired an iGaming technology business that I originally founded back in 2012 called Oryx Gaming.

Speaker Change: is two thousand and eighteen brack has secured both alisting on the nana stop market

Matevz Mazij: We're an internationally focused business with offices around the world, and we have more than 450 employees spread across these. Bragg as a business is licensed, certified, and otherwise compliant and operational as a supplier of iGaming content and technology solutions in more than 30 regulated jurisdictions globally. We are a diversified business across the whole value chain, participating in multiple segments of the iGaming ecosystem. We deliver our content from multiple in-house content studios and via many partner studios, both through our proprietary remote games server technology and through our content aggregation solution delivered by our Bragg Hub product delivery platform.

Speaker Change: and the Toronto Stock Exchange.

Matz: We're an internationally focused business with offices around the globe and we have more than 450 employees spread across these offices.

Matz: Bragg as a business is licensed, certified, and otherwise compliant in operational as a supplier of iGaming content and technology solutions in more than 30 regulated jurisdictions globally.

Matevz Mazij: We are a diversified business across the whole value chain, participating in multiple segments of the iGaming ecosystem, both through our proprietary remote games server technology. In tandem, we're providing cutting-edge turnkey technology solutions, such as the Bragg player account management platform, all supported by a dedicated management team and a highly experienced executive team of online sports betting and online lottery players globally. Our recent new hire, Robbie Bressler, as an interim

Speaker Change: We are a diversified business across the whole value chain, participating in multiple segments of the iGaming ecosystem.

Speaker Change: We deliver our content from multiple in-house content studios and via many partner studios.

Speaker Change: both through our propriperility remote gams service technology and to our content aggregation solution delivered by our brag hub product delivery platform

Matevz Mazij: In tandem, we're providing cutting-edge turnkey technology solutions, such as the Bragg player account management platform and our innovative FUSE marketing, promotional, and engagement tools. We're also providing a range of managed and operational services to customers worldwide, all supported by a dedicated management team and a highly experienced executive. In summary, Bragg is a brand trusted to deliver exceptional end-user experiences to millions of online casino, online sports betting, and online lottery players globally, on behalf of hundreds of the world's biggest iGaming brands.

Speaker Change: In tandem, we're providing cutting-edge turnkey technology solutions, such as the Bragg Player Account Management Platform.

Speaker Change: and our innovative FUSE marketing, promotional and engagement tool set.

Speaker Change: we're also providing a range of managagement operational services to customers worldwide all supported by a dedicated management team and a highly experienced executiveteam

Speaker Change: In summary, Bragg is a brand trusted to deliver exceptional end-user experiences to millions of online casino, online sports betting, and online lottery players globally, on behalf of hundreds of the world's biggest iGaming brands.

Matevz Mazij: Bragg as a business remains committed to retaining that privileged position and continuing to expand our relationships globally. Supporting Bragg's continued growth and expansion is a highly experienced leadership team, of which I am proud to be a part and to lead as CEO. Our recent new hires, Robbie Bressler as an interim CFO, Tomasso Di Chia as Chief Legal and Compliance Officer, and Neal White as a Chief Commercial Officer, each bring with them a track record of successfully growing iGaming businesses and a wealth of knowledge and expertise from across the business. They join an executive team with their own growth success story. Peter Lavich, our CTO, joined Oryx Gaming back in 2012 and is the chief architect behind what is today the award-winning suite of Bragg iGaming technology and products.

Speaker Change: Bragg as a business remains committed to retaining that privileged position and continuing to expand our relationships globally.

CEO: Supporting Bragg's continued growth and expansion is a highly experienced leadership team of which I am proud to be a part of and to lead as CEO .

Speaker Change: Our recent new hires, Robbie Bressler as an interim CFO .

CEO: Tomasso Di Chia as Chief Legal and Compliance Officer and Neal White as Chief Commercial Officer each bring with them a track record of successfully growing iGaming businesses

Matevz Mazij: They join an executive team with their own growth success story, which balances high-value proprietary content with diverse and localized games from our valued studio partners. I believe that this combination of extensive industry experience, combined with continuity and deep expertise in Bragg's products, technology, content, and vision, all with a track record of delivering growth, is what sets us apart and positions us for success. We will do this by continuing to scale up our content business, of both proprietary games from our in-house studios and games from our partner studios, which enrich and complete our exclusive iGaming content offering in multiple jurisdictions worldwide.

Speaker Change: and a wealth of knowledge and expertise from across the industry.

Speaker Change: They join an executive team with their own growth success stories.

Speaker Change: Peter Lavich, our CTO

Speaker Change: joint or is gaming back in two thousand and twelve and is the chief architect behind what is today the award winning suweite of brag by gaming technology and products

Matevz Mazij: With the acquisition of Wall Street Gaming in 2021, we welcomed the founder of that company, now our Group Director of Content, Doug Fallon, to the team. He is behind our huge growth in content development and production, developing and executing a strategy that balances high-value proprietary content with diverse and localized games from our valued studio partners. I believe that this combination of extensive industry experience, combined with continuity and deep expertise in Bragg's products, technology, content, and vision, all with a track record of delivering growth, is what sets us apart and positions us for success.

Speaker Change: With the acquisition of Wildstreet Gaming in 2021, we welcomed the founder of that company, now our Group Director of Content, Doug Fallon, to the team.

Matevz Mazij: He is behind our huge growth in content development and production, developing and executing a strategy which balances high-value proprietary content with diverse and localized gains from our valued studio partners.

Speaker Change: I believe that this combination of extensive industry experience combined with continuity and deep expertise in Bragg's products, technology, content, and vision

Speaker Change: All with a track record of delivering growth is what sets us apart and positions us for success.

Matevz Mazij: And with that, I want to revisit our core strategy to deliver growth for the company and to unlock value for our shareholders. We aim to drive this value generation through increased revenues and increased profitability. We will do this by continuing to scale up our content business, which includes both proprietary games from our in-house studios and games from our partner studios, which enrich and complete our exclusive iGaming content offering in multiple jurisdictions worldwide.

Speaker Change: and with that i want to revisit our core strategy to deliver growth for the company and to unlock value for our shareholders

Speaker Change: we aim to drive this value generation to increased revenues and increased profitability

Speaker Change: we will do this by continuing to scale up our content business of both propriary games from our in-house studios and games from our partner studios which enwhichich and complete or exclusive e gaining content offering in multiple jurisdictions worldwide

Matevz Mazij: We are growing our regulated market distribution by launching with new customers, upgrading existing relationships, and obtaining the necessary licenses and certifications to support our customers in all of the most important regulated and unregulated iGaming markets globally. Our content and product delivery offering is differentiated and value-added through our proprietary Fuse player engagement solution, which works across online casino, online sports betting, and online lottery products. I will show you how our full product suite coupled with our technical agility allows us to rapidly deploy custom iGaming products, technology, content, and services solutions in diverse regulated markets, and we are seeing increased demand for these custom solutions. And lastly, we're always laser focused on judicious cost control and operational efficiencies in order to maximize recurring profitability and to deliver long-term value.

Speaker Change: We are growing our regulated market distribution by launching with new customers, upgrading existing relationships.

Matevz Mazij: and obtaining the necessary licenses andcertifications to support our customers

Speaker Change: in all of the most important regulated and regulating e gaming markets globally

Speaker Change: Our content and product delivery offering is differentiated and value-added through our proprietary Fuse player engagement solution, which works across online casino, online sports betting, and online lottery products.

Speaker Change: I will show you how our full product suite coupled with our technical agility allows us to rapidly deploy custom iGaming products, technology, content, and services solutions in diverse regulated markets,

Matevz Mazij: And lastly, we're always laser focused on judicious cost control and operational efficiencies in order to maximize recurring profitability and deliver long-term value. So our ambition is to deliver shareholder value by focusing on these core strategic pillars, in order to become a premier global iGaming content and technology provider. I want to take a look at annualized growth rates for Bragg over the past five years.

Speaker Change: And we are seeing increased demand in these custom solutions.

Matevz Mazij: And lastly, we're always laser-focused on judicious cost control and operational efficiencies in order to maximize recurring profitability and to deliver long-term value.

Matevz Mazij: So our ambition is to deliver shareholder value by focusing on these core strategic pillars in order to become a premier global iGaming content and technology provider. As this slide illustrates, Bragg has a proven track record of positive financial growth across both our revenue and adjusted EBITDA metrics going back to the first full year of operations for the company in 2019. As we have constantly pushed to win new business, to obtain supplier licenses for new regulated jurisdictions, and to continue to develop our award-winning iGaming technology, an extensive exclusive content portfolio, and earn the trust of our customers, growth has followed. We're on track to quadruple our revenues in five years, and our compound annual growth rates for the 2019-2024 period. And for 2024 estimates, we're taking our guidance midpoints here.

Speaker Change: so our ambition is to deliver shareholder value by focusing on these core strategic pillars in order to become a premier global iyegaining content and technology provide

Speaker Change: i want to take a look at annualized growth rates for brag over the past five years

Matevz Mazij: As this slide illustrates, Bragg has a proven track record of positive financial growth across both our revenue and adjusted EBITDA metrics going back to the first full year of operations for the company in 2019. As we have constantly pushed to win new business, to obtain supplier licenses for new regulated jurisdictions, and to continue to develop our award-winning iGaming technology, an extensive exclusive content portfolio, and earn the trust of our customers, growth has followed. We're on track to quadruple our revenues in five years, and we take our compound annual growth rates for the 2019-2024 period. And for 2024 estimates, we're taking our guidance midpoints here.

Speaker Change: As this slide illustrates, Bragg has a proven track record of positive financial growth across both our revenue and adjusted EBITDA metrics going back to the first full year of operations for the company in 2019.

Speaker Change: As we have constantly pushed to win new business, to obtain supplier licenses for new regulated jurisdictions, and to continue to develop our award-winning iGaming technology,

Speaker Change: an extensive exclusive content portfolio

Speaker Change: and earning trust of our customers' growth has followed

Speaker Change: We're on track to quadruple our revenues in five years and taking our compound annual growth rates for 2019-2024 period. And for 2024 estimates, we're taking our guidance midpoints here.

Matevz Mazij: We are proud to be on track to deliver 32% CAGR over five years for revenue and 76% CAGR for adjusted EBITDA. And we aim to continue our positive growth story into 2025 and beyond. As Bragg has consistently grown, so has the global iGaming market as a whole, something that analysts project to continue into the future. According to data from H2 Gambling Capital, the global regulated online casino market in 2024 is estimated to be 32 billion US dollars in gross gaming revenue.

Matevz Mazij: We are proud to be on track to deliver 32% CAGR over five years for revenue and 76% CAGR for adjusted EBITDA, and we aim to continue with our positive growth story into 2025 and beyond. As Bragg has consistently grown, so has the global iGaming market as a whole, something that analysts project to continue into the future. According to data from H2 Gambling Capital, the global regulated online casino market in 2024 is estimated to be 32 billion US dollars in gross gaming revenue.

Speaker Change: We are proud to be on track to deliver 32% CAGR over five years for revenue.

Speaker Change: and seventy six percent kre for adjusted ebita

Speaker Change: And we aim to continue with our positive growth story into 2025 and beyond.

Speaker Change: as brack has consistently grown so has the global eyegaming market as a whole something that analysts protect to continue into the future

Speaker Change: according to data from h two gambling capital the global regulated online casino market in two thousand and twenty four is estimated at thirty-two billion u s dollars in gross gaining revenue

Matevz Mazij: And that is projected to almost double to 63 billion US dollars by 2029. With our broad distribution reach for content and our ability to rapidly adapt, certify, and deploy our iGaming technology for different regulatory regimes, we are extremely well positioned to capitalize on the overall trend towards iGaming regulation in more jurisdictions globally. Crucially, we aim to capture an increasing proportion of this growing global market. Between 2024 and 2029, the global CAGR in iGaming is projected at 15%. However, these projections are based on the existing regulatory status quo.

Matevz Mazij: And that is projected to almost double to 63 billion US dollars by 2029. With our broad distribution reach for content and our ability to rapidly adapt, certify, and deploy our iGaming technology for different regulatory regimes, we are extremely well positioned to capitalize on the overall trend toward iGaming regulation in more jurisdictions globally. Crucially, we aim to capture an increasing proportion of this growing global market. Between 2024 and 2029, the global CAGR in iGaming is projected at 15%, rising to 20% when looking at the North American market below. These projections are based on the existing regulatory status quo.

Matevz Mazij: and that is projected to almost double to sixty-three billion u s dollars by two thousand and twenty-nine

Speaker Change: with our broad distribution reach for content and our ability to rapid ly adap certify and deployed our eigaining technology for different regulatory regimes we are extremely well positioned to capitalize

Speaker Change: on the overall trend towards iGaming regulation in more jurisdictions globally. And crucially, we aim to capture an increasing proportion of this growing global market.

Speaker Change: between two thousand and twenty four and two thousand and twenty nine the global caer in iye gaming is projected at fifteen percent rising to a twenty percent when looking at the north american market flow

Speaker Change: These projections are based on the existing regulatory status quo.

Matevz Mazij: We're cautiously optimistic that new states with significant populations, such as Ohio, may follow the trend of the last few years and introduce a regulatory framework for online casino games in the coming years, further expanding the size of the market in the United States. While online sports betting is regulated in far more U.S. states, it is online casino, our specialty as a supplier, which offers the more stable margin, and pressures on sports web operators as evidenced by several brands leaving United States markets in recent months, adds to our belief that demand for high-quality online casino suppliers, which help the operators effectively manage the delivery of content, control the player journey, and which deliver profitable growth, will only continue to grow in North

Speaker Change: We're cautiously optimistic that the new states with significant populations such as Ohio may follow the trend of last few years and introduce a regulatory framework for online casino in the coming years.

Speaker Change: further expanding the size of the market in the united states

Matevz Mazij: While online sports betting is regulated in far more US states, it is Online Casino, our specialty as a supplier, which offers the more stable margins.

Matevz Mazij: and pressures on sports web operators as evidenced by several brands leaving United States markets in recent months.

Speaker Change: add to our belief that demand for high quality online casino suppliers which heped the operatorsis effectively managed the delivery of content controlled player journey and which deliver profitable growth will only continue to grow in north america

Matevz Mazij: Despite the size and scope of our content and turnkey solutions offering, Bragg's business model is relatively straightforward, in that operator partners utilizing our services, whether for iGaming content, technology, or our other services, typically pay us a share of the revenue derived from the usage of that content. As the example on the slide illustrates, For Bragg to achieve $100 million in revenue share, our operator partners must generate approximately $1 billion in gross gambling revenue through our content, technology, and services, which in turn is typically generated from around 23 billion U.S. dollars in player wages.

Matevz Mazij: despite the size and scope of our content and turnkey solutions offering

Matevz Mazij: Bragg's business model is relatively straightforward, in that operator partners utilizing our services, whether for iGaming content, technology, or our other services, typically pay us a share of the revenue derived from the usage of that content. As the example on the slide illustrates, our business model is scalable. As we launch with new customers or enter new markets, expanding our distribution and reach, we grow.

Speaker Change: Bragg's business model is relatively straightforward in that operator partners utilizing our services, whether for iGaming content, technology, or our other services,

typically pay us a share of the revenue derived from the usage of that content.

Matevz Mazij: As the example on the slide illustrates,

Matevz Mazij: For Bragg to achieve $100 million in revenue share, our operator partners must generate approximately $1 billion in gross gambling revenue.

Speaker Change: Through our content, technology, and services.

Matevz Mazij: which in turn is typically generated from around twenty-three billion u s dollars in player wagin

Matevz Mazij: Our business model is scalable. As our customers grow, we grow; as we launch with new customers or enter new markets, expanding our distribution and readership. [inaudible] We grow.

Matevz Mazij: Our business model is scalable.

Matevz Mazij: As our customers grow, we grow.

Matevz Mazij: As we launch with new customers or enter new markets, expanding our distribution and reach,

Matevz Mazij: And we're not content to just grow with the market. We have a huge opportunity to grow our share of the market. Taking the U.S. market alone, today, our share of the online casino market as a content provider to U.S. operators is less than 1%. We are already on track to double wagering in the US in 2024 compared to last year, and we are focused on continuing to aggressively grow our market share in this growing market. Focusing in on the United States, we take an operator-centric approach.

Matevz Mazij: We grow.

Matevz Mazij: and we are not contents to just grow with the market

Matevz Mazij: We have a huge opportunity to grow our share of the market.

Matevz Mazij: taking the u s market alone today our share of the online casino market as a content provider to u s operators in less than one percent

Matevz Mazij: We are already on track to double wagering in the U.S. in 2024 compared to last year, and we are focused on continuing to aggressively grow our market share in this growing market.

Matevz Mazij: Focusing in on the United States, we take an operator-centric approach and in the first half of this year we have been reconnecting with our customers to understand exactly how our content can deliver for their strategies.

Matevz Mazij: And in the first half of this year, we have been reconnecting with our customers to understand exactly how our content can deliver for their strategy. I have already mentioned that our U.S. wagering is set to double in 2024 compared to last year. And as we continue to refine our content roadmap to deliver for our customers, Simultaneously, we are expanding our reach, giving our new content launches greater impact. Our second quarter operator launches with FanDuel and MGM in Pennsylvania and our recent launch with Golden Nugget in New Jersey take us to approximately 70% market reach in the U.S. today for our newest games and technology. That's up from around 50% at the end of the first quarter of this year.

Matevz Mazij: And in the first half of this year, we have been reconnecting with our customers to understand exactly how our content can deliver for their strategy. I have already mentioned that our U.S. wagering is set to double in 2024 compared to last year. And as we continue to refine our content roadmap to deliver for our customers, simultaneously, we are expanding our reach, giving our new content launches greater impact. Our second quarter operator launches with FanDuel and MGM in Pennsylvania and our recent launch with Golden Nugget in New Jersey take us to approximately 70% market reach in the US today for our newest games and technology. That's up from around 50% at the end of the first quarter of this, and the momentum is set to continue.

Matevz Mazij: i already mentioned that our u s waging is set to double in two thousand and twenty four compared to last year

Matevz Mazij: and as we continue to refine our content roadmap to deliver our customers

Matevz Mazij: Simultaneously, we are expanding our reach, giving our new content launches greater impact.

Matevz Mazij: Our second quarter operator launches with FanDuel and MGM in Pennsylvania and our recent launch with Golden Nugget in New Jersey.

Matevz Mazij: Take us to approximately 70% market reach in the U.S. today for our newest games and technology.

Matevz Mazij: That's up from around 50% at the end of the first quarter of this year.

Matevz Mazij: And the momentum is set to continue. We're on track to be live with our newest content, with all of the key operators listed. We're excited about the US because of the opportunity, but all in all, we're licensed, certified, or otherwise compliant in over 30 iGaming jurisdictions globally, including the largest regulated online casino markets in the world. Our extensive global network allows us to leverage not only our exclusive content portfolio but our entire suite of iGaming technology, products, and services.

Matevz Mazij: We're on track to be live with our newest content with all of the key operators listed, as well as with other valued U.S. operators' partners, taking us to approximately 90% coverage of the U.S. market by the end of the year. We're excited about the US because of the opportunity, but all in all, we're licensed, certified, or otherwise compliant in over 30 iGaming jurisdictions globally, including the largest regulated online casino markets in the world.

Matevz Mazij: And the momentum is set to continue. We're on track to be live with our newest content with all of the key operators listed.

Matevz Mazij: as well as with other valued U.S. operators' partners.

Matevz Mazij: taking us to approximately 90% coverage of the U.S. market by the end of the year.

Matevz Mazij: We're excited about the U.S. because of the opportunity, but in all, we're licensed, certified, or otherwise compliant in over 30 iGaming jurisdictions globally, including the largest regulated online casino markets in the world.

Matevz Mazij: Our extensive global network allows us to leverage not only our exclusive content portfolio but our entire suite of iGaming technology, products, and services. For example, our Bragg hub aggregation, coupled with fused player engagement, is currently in high demand in LATAM and is poised to play a crucial role for operators looking to enter the market. By leveraging the platform, operators gain immediate access to a comprehensive portfolio of content right from day one, with the added benefit of being able to leverage all the great engagement tools we offer through a single integration. The combination of our content and technology not only enhances growth opportunities but also positions Latin America as a key region for us moving forward.

Matevz Mazij: Our extensive global network allows us to leverage not only our exclusive content portfolio, but our entire suite of iGaming technology, products, and services.

Jail: Good morning, everyone. My name is Jail and thank you for joining the second quarter of 2024 earnings conference call for Bragg Gaming Group. Shortly I'll hand the call over to Bragg Gaming Group CEO Matez Mazij, who will comment on Bragg's second quarter performance and Bragg's interim CFO, Robbie Bressler, who will review and discuss the company's second quarter financial results.

Matevz Mazij: For example, our Bragg hub aggregation, coupled with fused player engagement, is currently in high demand in LATAM and is poised to play a crucial role for operators looking to enter the market. By leveraging the platform, operators gain immediate access to a comprehensive portfolio of content right from day one with the added benefit of being able to leverage all the great engagement tools we offer through a single integration. The combination of our content and technology not only enhances growth opportunities but also positions Latin America as a key region for us moving forward.

Matevz Mazij: By leveraging the platform, operators gain immediate access to a comprehensive portfolio of content right from day one, with the added benefit of being able to leverage all the great engagement tools we offer through a single integration.

Jail: If you have not already done so, you can follow the earnings call presentation from Bragg's investor website at investors.bragg.group. That's investors plural with an S, then go to the events and presentation section. On this call, there will be a review of Bragg's financial and operating results for the second quarter of 2024. Following these prepared remarks, the conference call will be open to a question and answer period.

Matevz Mazij: The combination of our content and technology not only enhances growth opportunities, but also positions Latin America as a key region for us moving forward.

Matevz Mazij: Meanwhile, in highly regulated and established iGaming markets in Europe, we are seeing continued success in our PAM and turnkey solutions delivery. We're specialists in developing custom-built and fully localized spam solutions for regulated iGaming markets. And as proof of this, we've added two new PAM customers and have powered the launch of three additional sportsbook products for our customers since the start of the second quarter.

Matevz Mazij: Meanwhile, in highly regulated and established iGaming markets in Europe, we are seeing continued success in our PAM and turnkey solutions delivery. In providing these solutions, we're leveraging data and our agility strengths to optimize the online casino, sportsbook, and lottery performance of an ever-increasing number of customers, as illustrated in the table shown. We're specialists in developing custom-built and fully localized spam solutions for regulated iGaming markets. And as proof of this, we've added two new PAM customers and have powered the launch of three additional Sportsbook products for our customers since the start of the second quarter.

Jail: Before we get started, I have some brief cautionary remarks regarding certain statements that may be made on this call. Certain statements made on this conference call and the responses to various questions may constitute forward-looking information or future oriented financial information within the meaning of applicable securities laws. 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 company and its subsidiaries and their respective customers and industries.

Matevz Mazij: Meanwhile, in highly regulated and established iGaming markets in Europe ,

Matevz Mazij: We are seeing continued success in our PAM and Turnkey solutions delivery.

Matevz Mazij: In providing these solutions, we're leveraging data and our agility strengths to optimize the online casino, sportsbook, and lottery performance of an ever-increasing number of customers, as illustrated in the table shown.

Matevz Mazij: We're specialists in developing custom-built and fully localized spam solutions for regulated iGaming markets.

Matevz Mazij: And as proof of this, we've added two new PAM customers and have powered the launch of three additional Sportsbook products for our customers since the start of the second quarter.

Matevz Mazij: This extensive experience in product delivery, along with our data-driven approach to product development, in the right place and, importantly, at the right time. Delivering the full gaming ecosystem also enables opportunities for us to optimize the delivery of our own exclusive content portfolio, adding extra value for Bragg and its shareholders. And we're not resting on our laurels.

Matevz Mazij: This extensive experience in product delivery, along with our data-driven approach to product development, gives us a competitive advantage, which we pass on to our PAM and Turkey customers. It's an advantage that helps our customers control the player journey, providing the right content, in the right place, and importantly, at the right time. Delivering the full gaming ecosystem also enables opportunities for us to optimize the delivery of our own exclusive content portfolio, adding extra value for Bragg and its shareholders. And we're not resting on our laurels.

Matevz Mazij: This extensive experience in product delivery, along with our data-driven approach to product development,

Jail: While the company believes these assumptions to be reasonable, they are subject to a number of risks, uncertainties and other factors, which may are outside of the company's control and which could cause the actual results, performance or achievements of the company to be materially different. There can be no assurance that these assumptions or estimates are accurate or that any of these expectations will provide will prove to be correct. For a complete discussion of these risk factors, please refer to bright gaming groups recently filed press release and other publicly available disclosure.

Matevz Mazij: gives us a competitive advantage which we pass on to our PAM and turnkey customer.

Matevz Mazij: It's an advantage which helps our customers control the player journey, providing the right content.

Matevz Mazij: in the right place and, importantly, at the right time.

Matevz Mazij: Delivering the full gaming ecosystem also enables opportunities for us to optimize the delivery of our own exclusive content portfolio, adding extra value for Bragg and its shareholders.

Matevz Mazij: We're constantly innovating, using our game recommendation engine and the latest in AI-driven insights to revolutionize existing iGaming marketing strategies, creating more effective campaigns and maximizing profits for our customers. Maximizing profits for our customers obviously means maximizing profits for Bragg. We have invested significantly in our remote gaming server, which hosts and distributes proprietary and third-party exclusive game proposals. The Scalable Platform facilitates future growth through existing infrastructure for new games and distribution.

Matevz Mazij: We're constantly innovating, using our game recommendation engine and the latest in AI-driven insights to revolutionize existing iGaming marketing strategies, creating more effective campaigns and maximizing profits for our customers. Maximizing profits for our customers obviously means maximizing profits for Bragg. We have invested significantly in our remote gaming server, which hosts and distributes proprietary and third-party exclusive game portfolios. The scalable platform facilitates future growth through existing infrastructure for new games and distribution. I am pleased with our continued growth in new titles over the quarter, with 17 exclusive games being released in the second quarter of 2024. This included a record 12 from Bragg's own proprietary studio.

Matevz Mazij: Good morning, everyone.

Matevz Mazij: And we're not resting on our laurels. We're constantly innovating, using our game recommendation engine and the latest in AI-driven insights to revolutionize existing iGaming marketing strategies.

Matevz Mazij: My name is Matthias Greg. On this call, I'm going to make some initial comments and I'll run through some key operational highlights from the second quarter of 2024.

Matevz Mazij: Creating more effective campaigns and maximizing profits for our customers.

Matevz Mazij: Then I'm going to pass the line over to Robbie Bresler, our interim CFO, who joined us during the second quarter and 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 area before wrapping up with our outlook and summary and we'll then open up the call to your questions.

Matevz Mazij: Maximizing profits for our customers obviously means maximizing profits for Bragg.

Matevz Mazij: We have invested significantly in our remote gaming server, which hosts and distributes proprietary and third-party exclusive game portfolios.

Matevz Mazij: The scalable platform facilitates future growth through existing infrastructure for new games and distribution.

Matevz Mazij: I am pleased with our continued growth in new titles over the quarter, with 17 exclusive games being released in the second quarter of 2024. As illustrated here, content from Bragg Studios is a high-margin product for Bragg, while our Powered by Bragg partners provide crucial diversification for the business worldwide.

Matevz Mazij: Turning now to recent operational highlights. As you are know that where in the first quarter of 2024, we convened a board run special committee to review possible strategic alternatives for Bragg, including a potential sale, merger, acquisition or additional investment into the business. This process is still ongoing and comes against the backdrop of increased M&A activity and DI gaming sector, activity which has driven additional interest in Bragg. I want to reiterate that the board will not provide any further updates on the process until we have a material development to report on.

Matevz Mazij: I am pleased with our continued growth in new titles over the quarter, with 17 exclusive games being released in the second quarter of 2024.

Matevz Mazij: This included a record 12 from Bragg's own proprietary studio.

Matevz Mazij: As illustrated here, content from Bragg Studios is a high-margin product for Bragg, while our Powered by Bragg partners provide crucial diversification for the business worldwide. We're building a critical mass of revenue-generating content. Even as we release new games, existing content continues to generate revenues in the long run. We will focus on delivering our roadmap of top performing games as we move into the second half of the year. And our latest game releases in the first half of 2024 have been positively received by customers. We will continue to monitor, track, and respond to trends and feedback from customers as we move into the third quarter and beyond.

Speaker Change: as illustrated here content from brack studios is a high-margin product for brad

Matevz Mazij: while our Powered by Bragg partners provide crucial diversification for the business globally.

Matevz Mazij: We're building a critical mass of revenue-generating content. Even as we release new games, existing content continues to generate revenues in the long run. We will focus on delivering our roadmap of top performing games as we move into the second half of the year, and our latest game releases in the first half of 2024 have been positively received by customers. And we'll continue to monitor, track, and respond to trends and feedback from customers as we move into the third quarter and beyond.

Matevz Mazij: We're building a critical mass of revenue-generating content.

Matevz Mazij: Even as we release new games, existing content continues to generate revenues in the long term.

Matevz Mazij: We will focus on delivering our roadmap of top-performing games as we move into the second half of the year, and our latest game releases in the first half of 2024 have been positively received by customers,

Matevz Mazij: and will continue to monitor, track, and respond to trends and feedback from customers.

Matevz Mazij: During the second quarter, we announced the appointment of Robbie Bressler, who joins us on the call today as Interim G Financial Officer. Robbie has a wealth of experience across the eye-gaming and financial services industries, including from his time at Bally's Corporation and Ernst & Young.

Matevz Mazij: We also continue to invest in our Fuse platform, developing deeper relationships with our partners to maximize player engagement and to provide an exceptional player experience, with the introduction of casino and sportsbook engagement tools such as Jackpots and Recommendation Engines. We allow our operators to fully control the player journey and therefore maximize operator profits, which in turn grows Bragg Pro, our product owners and analysts, leverage the extensive data points we track to constantly optimize our algorithms and improve our engagement. We put the end user first, developing engaging content solutions and using data to enhance their user experience. And because we know our own products best.

Matevz Mazij: We also continue to invest in our Fuse platform, developing deeper relationships with our partners to maximize player engagement and to provide an exceptional player experience, with the introduction of casino and sportsbook engagement tools such as Jackpots and Recommendation Engines. We allow our operators to fully control the player journey and therefore maximize operator profits, which in turn grows Brockport, our product owners and analysts, leverage the extensive data points we track to constantly optimize our algorithms and improve our engagement. We put the end user first, developing engaging content solutions and using data to enhance their user experience. And because we know our own products best.

Matevz Mazij: as we move into the third quarter and beyond.

Matevz Mazij: We also continue to invest in our Fuse platform, developing deeper relationships with our partners to maximize player engagement and to provide exceptional player experience.

Matevz Mazij: with the introduction of casino and sportsbook engagement tools such as jackpots and recommendation engines.

Matevz Mazij: In May, we announced that Neal White, formerly of Digital Gaming Corporation, or DGC, joined us in the capacity of Chief Commercial Officer in order to lead the next stage of growth at Bragg.

Matevz Mazij: We allow our operators to fully control the player journey and therefore maximize operator profits.

Matevz Mazij: which in turn grows Bragg Profits.

Matevz Mazij: Neal is joined by Gatic Morris, also previously of DGC, as Senior Vice President for Commercial for US and Canada, to drive the US rollout forward something I will talk more about in today's presentation.

Matevz Mazij: Our product owners and analysts leverage the extensive data points we track to constantly optimize our algorithms and improve our engagement tools.

Matevz Mazij: We put the end user first, developing engaging content solutions and using data to enhance their experience.

Matevz Mazij: I can also announce that we have recently bolstered our legal team and completed our executive leadership team with the appointment of Experience Eye-Gaming Industry Lawyer Tomasovic here as our Chief Legal and Compliance Officer. I welcome Robbie Neal, Gatic, and Tomasov to the team, and after Robbie has taken you through our second quarter financial results, I will take a moment to give you a snapshot of the highly experienced executive leadership we have now in place, ready to deliver the next stage of Bragg growth and to support any outcome of the strategic review.

Matevz Mazij: Our teams work hand in hand with operators to unlock the value of our tools in order to reach their specific goals, whether that be player sign-up, retention, or VIP management, always with the goal of providing a differentiated engagement experience and enhancing the player experience in order to maximize profit. We have a lineup of operator promotions that we will be running on our key titles through our engagement platform, something which not only gives our customers a chance to see the tools in action, but allows them to optimize and improve these where needed, giving operators a glimpse into the amazing results which can be delivered through the custom promotions available.

Matevz Mazij: Our teams work hand in hand with operators to unlock the value of our tools in order to reach their specific goals, whether that be player sign-up, retention, or VIP manager, always with the goal of providing a differentiated engagement experience and enhancing the player experience in order to maximize profit. We have a lineup of operator promotions that we will be running on our key titles through our engagement platform, something which not only gives our customers a chance to see the tools in action, but allows them to optimize and improve these where needed, giving operators a glimpse into the amazing results which can be delivered through the custom promotions available.

Matevz Mazij: And because we know our own products best.

Matevz Mazij: Our teams work hand-in-hand with operators to unlock the value of our tools in order to reach their specific goals.

Matevz Mazij: Whether that be player sign-up, retention, or VIP management.

Matevz Mazij: Always with the goal of providing a differentiated engagement experience.

Matevz Mazij: and enhancing the player experience in order to maximize profits.

Matevz Mazij: We have a lineup of operator promotions that we will be running on our key titles through our engagement platform.

Matevz Mazij: Turning to our rollout across the United States, we've capitalized on our existing relationship with customers by expanding into new states, most notably Pennsylvania, where we recently announced that we launched our US Eye-Gaming Content and Technology with BETMGM and Borgata. We are also pleased to announce at the end of the second quarter we've launched with FAMJU, the local market leader, as well as with International Bookmaker, BET365, also in Pennsylvania. We're also pleased to announce that we've recently expanded our relationship with Golden Nugget in New Jersey, and after Robbie has presented the financials, I will show you what all this means for our distribution reach in North America.

Matevz Mazij: Something which not only gives our customers a chance to see the tools in action, it allows them to optimize and improve these where needed, giving operators a glimpse into the amazing results which can be delivered through the custom promotions available.

Matevz Mazij: And so to conclude... Bragg's second quarter revenue grew by 0.5% compared to the same period of last year to €24.9 million, representing a record second quarter for the company. However, our adjusted EBITDA in the second quarter of 2024 dropped by 24% year over year to 3.6 million euros, while our gross profit decreased by 12% to 12.4 million euros over the same period. As Robby has discussed, these expected decreases were due to changes in our product.

Matevz Mazij: Bragg's second quarter revenue grew by 0.5% compared to the same period of last year to €24.9 million, representing a record second quarter for the company, while our gross profit decreased by 12% to 12.4 million euros over the same period. As Robbie has discussed, these expected decreases were due to changes in our product.

Robbie: And so to conclude...

Matevz Mazij: Bragg's second quarter revenue grew by 0.5% compared to the same period of last year to €24.9 million, representing a record second quarter for the company.

Robbie: While our gross profit decreased by 12% to $12 4 million euros over the same period.

Ravi: As Ravi has discussed.

Matevz Mazij: Over the quarter we've seen excellent growth in the adoption of our player account management technology, notably in Czech Republic, where Bragg was able to conclude an agreement with King's BET for our full service turkey solution. King's BET becomes our second palm customer in the country and is already seeing positive growth following its launch. In the Netherlands, our biggest market, we added our sixth palm customer in hardrockacena.nl, in a deal which included content aggregation and management services Hard Rock is an internationally known and recognizable brand and to be powering their Dutch expansion is something we are very proud to support.

Robbie: These expected decreases were due to changes in our product mix.

Matevz Mazij: However, we are pleased to report that revenue, Adjusted EBITDA, and gross profit were up on a sequential basis when compared to the first quarter of 2024, and we are expecting robust trading in the second half of the year. We've already increased our distribution coverage in the United States for our newest content to 70% of the total addressable market, and we're projecting to increase that to 90% coverage by the end of the year.

Robbie: However, we are pleased to report that revenue.

Matevz Mazij: Adjusted EBITDA and gross profit were up on a sequential basis when compared to the first quarter of 2024.

Matevz Mazij: And we are expecting robust trading in the second half of the year.

Matevz Mazij: We've already increased our distribution coverage in the United States.

Matevz Mazij: For our U S content to 70% of the total addressable market.

Matevz Mazij: And we're projecting to increase up to 90% coverage by the end of the year.

Matevz Mazij: As Robbie discussed earlier, remaining Lindt convertible debt has been settled in cash post-quarter end. We're currently tracking to the lower end of our full year revenue guidance with ranges of 102 to 209 million euros for revenue and 15.2 to 18.5 million euros for adjusted EBITDA.

Matevz Mazij: As Rob discussed earlier remaining linde convertible debt has been settled in cash post quarter end.

Matevz Mazij: We're currently tracking to the lower end of our full year revenue guidance with ranges of 102 to 209 million euros for revenue and 15.2 to 18.5 million euros for adjusted EBITDA. Finally, we note that the Special Committee continues to advance the Strategic Alternatives Review process. And I want to reiterate that our board and management team are 100% focused on all opportunities for maximizing shareholder value. Thank you for listening.

Matevz Mazij: We're currently tracking to the lower end of our full year revenue and adjusted EBITDA guidance with ranges of 100 to 209 million euros for revenue.

Matevz Mazij: Returning to the Dutch market over the quarter we powered the sport book launches of three of our existing palm clients in the Netherlands as they look to take advantage of the UFA European Championship football tournament. The first of these launches was of the Metric Gaming Sportsbook with BethNation.nl, a deal achieved through the expansion of our existing turnkey relationship with the Dutch license operator. Since this initial launch we have concluded similar deals to launch the Metric Gaming Sportsbook with Common.nl, following their Sportsbook license award and have also launched the Cambys Sportsbook with 711.nl, a valued palm customer of Bragg.

Matevz Mazij: And $15 two to $18 5 million euros for adjusted EBITDA.

Matevz Mazij: Finally, we share that the Special Committee continues to advance the Strategic Alternatives Review process, and I want to reiterate that our board and management team are 100% focused on all opportunities for maximizing shareholder value. Thank you for listening. I'd like to take this opportunity to pay tribute to the entire Bragg team for their continued unwavering hard work and commitment during this quarter. And now, I will turn the line back to the operator and Robbie, and I will be happy to take any questions.

Matevz Mazij: Finally, we shared that the special committee continues to advance the strategic alternatives review process.

Matevz Mazij: And I want to reiterate that our board and management team are 100% focused on all opportunities for maximizing shareholder value.

Operator: I'd like to take this opportunity to pay tribute to the entire Bragg team for their continued unwavering hard work and commitment during this quarter. Now I will turn the line back to the operator and Robby, and I will be happy to take any questions. 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.

Matevz Mazij: Thank you for listening I would like to take this opportunity to pay tribute to the entire <unk> team for their continued unwavering hard work and commitment during this quarter.

Matevz Mazij: And now I will turn the line back to the operator, and Robbie and I will be happy to take any questions.

Matevz Mazij: We are very excited about the potential of these new sportsbook partners and the way they allow us to enhance our existing relationships with turnkey and band-flawiant by adding a new vertical. Drawing on this throughout the quarter we have continued to develop and distribute our innovative and exclusive content globally launching 17 new exclusive games during the period. We have expanded the global distribution of our online casino content with Light and Wonder giving us crucial exposure across regulated markets and Italy we have partnered with CSOW to launch in what is Europe's second largest eye-gaming market.

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 loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. Your first question comes from the line of Gianluca Tucci of Haywood Securities. Your line is open.

Operator: 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 loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Robbie: 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 joined the queue.

Operator: If you would like to withdraw your question simply press Star one again.

Operator: If you are called upon to ask a question and are listening via a loudspeaker out new device. Please pickup your handset to ensure that your phone is not on mute when asking your question.

Operator: Your first question comes from the line of Gianluca Tucci of Haywood Securities. Your line is open. Hi, good morning, guys.

Speaker Change: Your first question comes from the line of <unk>.

Speaker Change: And Luca <unk> of Haywood Securities. Your line is open.

Matevz Mazij: Just on the outlook, if you look beyond this year, like, where do you expect the bulk of the growth to come from? You've done a good job growing outside of North America, but, you know, like, what's it going to take to see that similar growth here in North America? Hi Gianluca, this is Matt speaking.

Gianluca Tucci: Hi, good morning guys. Just on the outlook, if you look beyond this year, like, where do you expect the bulk of the growth to come from? You've done a good job growing outside of North America, but like, you know, like, what's it going to take to see that similar growth here in North America?

Gianluca Tucci: Hi, Good morning, guys just on the outlook.

Gianluca Tucci: If you look beyond this year like when do you expect the bulk of the growth to come from you've done a good job growing outside of North America.

Matevz Mazij: Now once Robbie has taken you through the financial results I will come back to take some of these points in more detail before we open the line for your questions.

Gianluca Tucci: You know like what's it going to take to see that similar type growth here in North America.

Matevz Mazij: As we expand our distribution network in North America, launching new clients in the United States and launching new jurisdictions, new iGaming jurisdictions in the United States and... hopefully, launching new jurisdictions in both Latin America and potentially Canada, we will see growth coming from proprietary content and third-party exclusive content, and we will see growth coming from Pam and Managed Services, particularly in Latin America. We will also see growth in both proprietary and third-party content, third-party exclusive content, distribution, and Improved Positioning and improved usage of our content in Europe. And we will hopefully see new regulations or new jurisdictions in Europe where clients are going to use our turnkey solution. Okay, thanks, Matt.

Matevz Mazij: Hi Gianluca, this is Matt speaking. As we expand our distribution network in North America, launching new clients in the United States, and launching new jurisdictions, new iGaming jurisdictions in the United States. Hopefully, launching new jurisdictions in both Latin America and potentially Canada, we will see growth coming from proprietary content and third-party exclusive content, and we will see growth coming from Pam and Managed Services, particularly in Latin America. We will also see growth in both proprietary and third-party content, third-party exclusive content, distribution, and improved positioning and improved usage of our content in Europe. And we will hopefully see new regulations or new jurisdictions in Europe where clients are going to use our turnkey solution.

Gianluca Tucci: Hi, John Luca This is Matt speaking.

Robert Bressler: Robbie? Thank you Matt and good morning to everybody. It's been great to be a part of the Bragg team for the short period and looking forward to engaging with our analysts and shareholders in my new role. Being part of a growing company that is active in over 30 regulated jurisdictions with the best in class product mix and growing coverage of the North American markets is extremely exciting and I'm looking forward to being part of this success story.

Matevz Mazij: Sure.

Matevz Mazij: As we expand our distribution network in North America, launching new clients in the United States and launching new jurisdictions, new I gaming jurisdictions in United States.

Matevz Mazij: And.

Matevz Mazij: Hopefully launching new jurisdictions in both Latin America and <unk>.

Matevz Mazij: And potentially Canada, we will see.

Robert Bressler: Jumping into Q2 results total revenue for the second quarter was 24.9 million euros a record high up 0.5% compared to Q2 2023. As expected gross profit and evada were down compared to second quarter of last year. Q2 2024 gross profit decreased by 10% to 12.4 million euro with gross profit margins decreasing to 49.9%. Adjusted evada for the quarter was down 24% to 3.6 million euro and our adjusted evada margin decreased to 14.5%.

Matevz Mazij: The growth coming from.

Matevz Mazij: Proprietary content and third party exclusive content.

Matevz Mazij: And we will see growth coming from.

Matevz Mazij: Pam and managed services, particularly in Latin America, we will also see growth.

Matevz Mazij: In both proprietary and third party content to fight exclusive content.

Matevz Mazij: Distribution.

Matevz Mazij: And improved positioning and improved.

Matevz Mazij: Hmm.

Matevz Mazij: Usage of our content in Europe.

Matevz Mazij: And we will hopefully see new regulations or new jurisdictions regulator in Europe.

Robert Bressler: While gross profit and adjusted evada were down year over year is expected due to changes in our product mix we are encouraged to see sequential growth in revenue gross profit and adjusted evada compared to the first quarter of this year at time frame in which our product mix has been consistent.

Matevz Mazij: Where clients are going to use.

Matevz Mazij: Our turnkey solutions.

Gianluca Tucci: Okay, thanks, Matt. And like, you know, just on the customer mix, Bragg's had a couple new PAM customers announced lately. I'm just wondering, how does the pipeline look at this point in terms of the combination of potential new PAM customers and potential new content partners or new content customers? How is the pipeline split right now?

Matevz Mazij: And like, you know, just on the customer mix, Bragg's had a couple new PAM customers announced lately. I'm just wondering, how does the pipeline look at this point in terms of the combination of potential new PAM customers and potential new content partners or new content customers? How is the pipeline split right now?

Gianluca Tucci: Okay, Thanks, Matt and just on the customer mix.

Gianluca Tucci: Brian I had a couple new Pam customers announced lately I'm just wondering how does the pipeline.

Robert Bressler: We expect to see this growth continue through the second half of 2024 and are reiterating our full-year revenue and adjusted EBITDA guidance at 102 to 109 million Euro and 15.2 to 18.5 million Euro respectively, noting that we are currently tracking to the lower end of the guidance ranges provided. In 2024, revenue from content represented 80% of total revenue while in Q2 2023 total content revenue represented 77%. Pan and Turnkey revenue however declined as a percentage of total revenue going from 23% in Q2 2023 to 20% of total revenue in Q2 2024.

Gianluca Tucci: How does it look at this point and in terms of the combination of a potential Pam new customers and potential new content partners or.

Speaker Change: New content customers, how does the pipeline split right now.

Matevz Mazij: So we have a very strong pipeline of turnkey solution clients. So these are clients that use our PAM, our managed services, obviously use our product delivery platform hub, where we deliver aggregated content and, if that is the case, also third-party managed sportsbook. And all of these clients are automatically our proprietary content clients.

Matevz Mazij: So we have a very strong pipeline of turnkey solution clients. These are clients that use our PAM, our managed services, obviously use our product delivery platform hub where we deliver aggregated content, and, if that is the case, also third-party managed sports books.

Speaker Change: So we have a very strong pipeline of turnkey solution clients. These are clients that use our Pam or managed services obviously.

Matevz Mazij: Use our product delivery platform hub.

Matevz Mazij: Where we deliver aggregated content and if that is the case also third party managed sports book and all of these clients are automatically our proprietary content clients. So we have a.

Matevz Mazij: And all of these clients are automatically our proprietary content clients. So... We have a number of those types of clients in the pipeline, both in Latin America and Europe, what we call the rest of the world market. We also have a number of clients in the pipeline in both Europe and North America that are potentially taking our hub, our aggregation platform, and our proprietary third-party content. I would think that we're currently very focused on getting our content distributed primarily in North America. I think that the biggest growth is going to come from that market, but equally, obviously, trying extremely hard to win deals that are on our desks for PAM and Turnkey. Thanks for that, Matt.

Matevz Mazij: We have a number of those types of clients in the pipeline, both in Latin America and Europe, what we call the rest of the world market. We also have a number of clients in the pipeline in both Europe and North America that are potentially taking our hub, our aggregation platform, and our proprietary third-party content. I think that we're currently very focused on getting our content distributed primarily in North America. I think that the biggest growth is going to come from that market, but equally, obviously, trying extremely hard to win deals that are on our desks for PAM and Turnkey.

Matevz Mazij: A number of those types of clients in the pipeline both in.

Robert Bressler: Preparatory content and exclusive third-party content total revenue increased by 12% since Q2 2023 with notable positive momentum in the US. Preparatory content deployment is progressing well in both the US and EU markets through increased distribution and game performance. These changes in product mix have resulted in reduced gross profit and adjusted EBITDA however as mentioned we are pleased to see consistent growth from Q1 to Q2 in 2024 where a product mix was consistent. Revenue is up 4.4% to Q1 2024 and gross profit and adjusted EBITDA are up 4.4% and 6% respectively.

Matevz Mazij: Latam and Europe, what we call the rest of the world market.

Matevz Mazij: We also have a number of our clients in the pipeline in both Europe and North America.

Matevz Mazij: That our.

Matevz Mazij: Potentially taking our hub, our aggregation platform and our proprietary and third party content.

Speaker Change: And I would think that.

Matevz Mazij: We're currently very focused on.

Matevz Mazij: Getting our content distributed primarily in North America, I think that the biggest growth is going to come from.

Matevz Mazij: From that market, but equally obviously trying extremely hard to win deals that are on our desks.

Robert Bressler: Turning to the balance sheet. As of June 30, 2024, we held 10.8 million Euro in cash and cash equivalents. During the quarter we obtained a 7 million USD secured promissory note from our related party that bears interested in annual rate of 14% payable quarterly. Funds are being used to provide us maximum financial flexibility as we continue to progress through the strategic review process. I can confirm that post-corder end the remaining outstanding Lynn convertible debt of 1 million USD has now been settled in full in cash. Networking capital excluding deferred consideration convertible debt and promissory note as of June 30, 2024 amounted to 10.5 million Euro compared to 5.1 million Euros at the beginning of the year.

Matevz Mazij: For power in turnkey.

Robert Bressler: And then, perhaps for Robbie, but in the past, it was mentioned that the company expects to return to growth on gross margin in 25. Is that still the plan as of today, Robbie? Yeah, I believe so.

Gianluca Tucci: Thanks for that, Matt. And then, perhaps for Robbie, but in the past, it was mentioned that the company expects to return to growth on gross margin in 25. Is that still the plan as of today, Robbie? Yeah, I believe so.

Matevz Mazij: Thanks for that Matt and then just lastly, perhaps for Robbie but in the past. It was mentioned that the company expects to return to.

Gianluca Tucci: Growth on gross margin in the 25 is that still the plan as of today Robbie.

Robby Bressler: Yeah, I believe so. As Matt mentioned, as we increase the concentration of PEM and managed service customers and RGS's exclusive and proprietary content, we should see our profit margins increase. And I believe we are on track to start seeing that.

Robert Bressler: So, as Matt mentioned, as we increase the concentration of PAM and managed service customers and RGS's exclusive and proprietary content, we should see our profit margins increase. And I believe we are on track to start seeing that. Okay, guys. Thank you. Your next question comes from the line of Jordan Bender of JMP Securities. Your line is open. Good morning, everybody. This is Eric, on behalf of Jordan.

Robbie: Yes, I believe so.

Robby Bressler: As Matt mentioned as we.

Speaker Change: Increase the concentration of Pam and managed service customers and.

Robby Bressler: Rgs exclusive and proprietary content.

Robby Bressler: We should see our profit margins increase and I believe we are on track to start seeing that.

Speaker Change: Okay. Thanks, guys.

Speaker Change: Thank you.

Jordan Bender: Your next question comes from the line of Jordan Bender of JMP Securities. Your line is open.

Speaker Change: Your next question comes from the line of Jordan Bender of JMP Securities. Your line is open.

Matevz Mazij: I will now hand over the call back to Matt to continue with commentary on strategy and operations. Thank you Robbie.

Eric Ross: Good morning everybody. This is Eric on behalf of Jordan. My first question for Robbie, I know it hasn't been long since you joined the company, but is there anything you would like to change within the business from a financial perspective?

Jordan Bender: Good morning, everybody. This is Eric on for Jordan.

Robert Bressler: My first question for Robby, I know it hasn't been long with the company, but is there anything you would like to change within the business from a financial perspective? Correct. It hasn't been very long, but July has been a very busy July.

Matevz Mazij: Now in the next slides I want to give you a snapshot of who Bragg is and what we're trying to achieve as a business. Bragg began life in 2018 when it acquired deny gaming technology business that I originally founded back in 2012 called Orange Gaming. Since 2018 Bragg has secured both a listing on the non-tech stock market and the Toronto Stock Exchange. We're an internationally focused business with offices around the globe and we have more than 450 employees spread across these, offices.

Eric Ross: My first question Robby I know it hasnt been long with the company, but is there anything you'd look to change within the business from a financial perspective.

Robby Bressler: Correct. It hasn't been very long, but July has been a very busy month.

Robbie: Correct it hasn't been very long, but it has been a very busy July I think from a financial perspective, having good strengthen our balance sheet and good optionality when it comes to opportunities we wanted to.

Robby Bressler: I think from a financial perspective, you know, having good strength in our balance sheet and good optionality when it comes to opportunities we want to invest in is important. So pending the outcome of the special committee, I think we'll look to see what can be done to have those sorts of options for us. I think having the loan that we received recently has helped just with flexibility, but more medium to long term, assuming we are operating status quo, I think the market is ripe for interesting opportunities, potentially from a partnership or M&A perspective. And I again want to have the flexibility in our balance sheet to be able to potentially pursue something like that.

Robert Bressler: I think from a financial perspective, having good strength in our balance sheet and good optionality when it comes to opportunities we want to invest in is important. So, pending the outcome of the special committee, I think we'll look to see what can be done to have those sorts of options for us. I think having the loan that we received recently has helped just with flexibility, but more medium to long term, assuming we are operating status quo, I think the market is ripe for interesting opportunities, potentially from a partnership or M&A perspective. And I again want to have the flexibility in our balance sheet to be able to potentially pursue something like that.

Robby Bressler: <unk> is important so.

Robby Bressler: Pending the outcome of the Special Committee I think we'll we'll look to see what.

Robby Bressler: What can be done to have.

Robby Bressler: Those sorts of options for us I think having the the loan that we received recently.

Matevz Mazij: Bragg as a business is licensed, certified and otherwise compliant and operational as a supplier of eye gaming content and technology solutions in more than 30 regulated jurisdictions globally. We are a diversified business across the whole value chain, participating in multiple segments of the eye gaming ecosystem. We deliver our content from multiple in-house content studios and via many partner studios, both through our proprietary remote games, server technology, and through our content aggregation solution delivered by our Bragg Hub Product Delivery platform.

Robby Bressler: Just with with flexibility, but more medium to long term assuming we.

Robby Bressler: Operating status quo.

Robby Bressler: The market is ripe for interesting opportunities potentially from.

Robby Bressler: Partnership or M&A perspective, but I again want to have that flexibility in our balance sheet to be able to potentially pursue something like that.

Matevz Mazij: Great, and just a follow-up, you guys have been speaking in the past few quarters about entering new and regulated markets. Has that progressed, and should we expect a normal ramp within those markets? And separately, New Zealand is looking to legalize online gaming in some fashion. Is there any opportunity to expand there? Thank you, guys.

Speaker Change: Great and just a follow up you guys have been smoking speaking out in the past few quarters, just on entering new and regulated markets.

Eric Ross: Great, and just a follow-up. You guys have been speaking in the past few quarters about entering new and regulated markets. Has that progressed, and should we expect a normal ramp within those markets? And separately, New Zealand is looking to legalize online gaming in some fashion. Is there any opportunity to expand there? Thank you, guys.

Matevz Mazij: In tandem, we're providing cutting edge-stern keys technology solutions, such as the Bragg player account management platform, and our innovative fuse marketing promotional and engagement toolset. We're also providing a range of managed and operational services to customers worldwide, all supported by a dedicated management team and a highly experienced executive team. In summary, Bragg is a brand trusted to deliver exceptional end-user experiences to million of online casino, online sports betting, and online lottery players globally. On behalf of hundreds of the world's biggest eye gaming brands, Bragg as a business remains committed to retaining that privileged position and continuing to expand our relationships global.

Eric Ross: And should we expect a normal ramp within those markets.

Eric Ross: Currently New Zealand is looking to legalized online gaming in some fashion is there any opportunity to extend expand it. Thank you guys.

Eric Ross: Okay.

Matevz Mazij: Yeah, so we have recently entered the market, the newly regulated market in Peru. We obtained the approvals, and we are obviously allowed to distribute content in that market. We're very, very active in the recently regulated Brazilian market. We are very, very excited about new jurisdictions such as New Zealand, Finland, and some other markets in Europe, although it is obviously unclear as to what the timeline is going to be. And we're not only obviously closely monitoring but actively participating in conversations with potential operators in those markets. There is, hopefully, going to be movement in the U.S. as well, where we hope that there are going to be new jurisdictions that are going to allow iGaming in the future.

Matevz Mazij: Yeah, so we have recently entered the market, the newly regulated market in Peru. We obtained the approvals, and we are obviously allowed to distribute content in that market.

Speaker Change: Yes, so we have.

Matevz Mazij: Recently entered the.

Matevz Mazij: The market directly to a newly regulated market in Peru.

Matevz Mazij: We obtain the approvals and are obviously allowed to distribute content in that market.

Matevz Mazij: We're very, very active in the recently regulated Brazilian market. We are very, very excited about new jurisdictions such as New Zealand, Finland, and some other markets in Europe, although it is obviously unclear as to what the timeline is going to be. And we're not only obviously closely monitoring but actively participating in conversations with potential operators in those markets. There is, hopefully, going to be movement in the U.S. as well, where we hope that there are going to be new jurisdictions that are going to allow iGaming in the future.

Matevz Mazij: Very very active in the recent deregulated the Brazilian market.

Matevz Mazij: We are very very.

Matevz Mazij: Excited about new.

Matevz Mazij: Jurisdictions, such as New Zealand, Finland.

Matevz Mazij: And some other markets in Europe.

Matevz Mazij: It is obviously unclear as to what the timeline is going to be.

Matevz Mazij: Supporting Bragg's continued growth and expansion is a highly experienced leadership team of which I am proud to be a part of and to lead as CEO. Our recent new hires, Robbie Brestler as an interim CFO, Thomas DiQio as chief legal and compliance officer, and Neil White as a chief commercial officer, each bring with them a track record of successfully growing eye gaming businesses, and a wealth of knowledge and expertise from across the industry.

Matevz Mazij: And.

Matevz Mazij: Well not only obviously closely monitoring but actively participating in conversations.

Matevz Mazij: With potential operators in those.

Matevz Mazij: In those in those markets there is hopefully going to be movement.

Matevz Mazij: In the U S as well, where we hope that they're going to be new.

Matevz Mazij: <unk> that are going to allow.

Matevz Mazij: And we're very positive about our ability to deliver. We have always been at the forefront of that process and one of the first companies that entered these markets. I mean, a very good example of that is Holland, where we launched pretty much on Day one and have seen major success coming from that, and we're gearing up for these changes in these jurisdictions and expect to be seeing similar success in some of these jurisdictions, whether it's going to be Panamanian Turkey or just aggregational content yet to see, but very optimistic about that, yes. Your next question comes from the line of Jack Vander Aarde Your line is open. Okay, great. Good morning.

Matevz Mazij: And we're very positive about our ability to deliver. We have always been at the forefront of that process and one of the first companies that entered these markets. I mean, a very good example of that is Holland, where we launched pretty much Day One and have seen major success coming from that, and we're gearing up for... these changes in these jurisdictions and expect to be seeing similar success in some of these jurisdictions, whether it's going to be Pan Am or Turkey or just aggregational content yet to see, but very optimistic about that, yes.

Matevz Mazij: I gaming.

Matevz Mazij: And in the future and we're very positive about our ability to deliver we have always been on the forefront of.

Matevz Mazij: They join an executive team with their own growth success stories. Peter Lavage or CTO joined Orange Gaming back in 2012 and is the chief architect behind what is today the award-winning suite of Bragg eye gaming technology and products. With the acquisition of Wall Street Gaming in 2021, we welcome the founder of that company, now our group director of content, Doug Fallon to the team. He is behind our huge growth in content development and production, developing and executing a strategy which balances high-value proprietary content with diverse and localized games from our valued studio partners.

Matevz Mazij: Of that process and one.

Matevz Mazij: One of the first companies that have.

Matevz Mazij: Entered these markets I mean, very good example of that is Holland, where we.

Matevz Mazij: Launched pretty much.

Matevz Mazij: Day one.

Matevz Mazij: And have seen major success coming from that end.

Matevz Mazij: We're gearing up for.

Matevz Mazij: These changes in these jurisdictions in and expect to be seeing similar.

Matevz Mazij: Similar success in some of these jurisdictions, whether it's going to be pan with turnkey or just aggregation of content yet to see but.

Matevz Mazij: We're optimistic about that yes.

Matevz Mazij: I believe that this combination of extensive industry experience combined with continuity and deep expertise in Bragg's products, technology, content and vision, all with a track record of delivering growth is what sets us apart and positions us for success.

Jack van der Aarde: Your next question comes from the line of Jack Van Der Aarde of Maxim Group. Your line is open.

Speaker Change: Your next question comes from the line of Jack <unk> vendor Rd of Maxim Group. Your line is open.

Jack van der Aarde: Okay, great. Good morning.

Matevz Mazij: Thank you for taking my questions. So, Mets, maybe a question on just circling back on the U.S. You know, U.S. revenue has been around 1, 1.5, 1 to 1.1 million, it looks like, in the first quarter and the second quarter. Maybe just a little more color.

Jack van der Aarde: Thank you for taking my questions. So, Matt, maybe a question on just circling back on the U.S. You know, U.S. revenue has been around 1, 1.5, 1 to 1.1 million, it looks like, in the first quarter and the second quarter. Maybe just a little more color, do you expect this quarterly run rate of like a million to start picking up significantly then as your U.S. coverage kind of ramps up to towards that 90% as you exit the year? Just trying to get a sense of what you, what are you expecting in terms of revenue actual uptick? It has been in that one million range. Thanks. Yeah,

Speaker Change: Okay, great. Good morning, Thank you for taking my questions.

Jack van der Aarde: So Matt maybe a question on just circling back on the U S.

Matevz Mazij: And with that, I want to revisit our core strategy to deliver growth for the company and to unlock value for our shareholders. We aim to drive this value generation through increased revenues and increased profitability. We will do this by continuing to scale up our content business of both proprietary games from our in-house studios and games from our partner studios which enrich and complete our exclusive eye-gaming content offering in multiple jurisdictions worldwide.

Speaker Change: U S revenue has been around 115.

Speaker Change: One to $1 $1 billion it looks like in the first quarter in the second quarter maybe.

Jack van der Aarde: Maybe just a little more color do you expect this quarterly run rate of like $1 million to start picking up significantly then.

Matevz Mazij: Do you expect this quarterly run rate of like a million to start picking up significantly then as your U.S. coverage kind of ramps up towards that 90% as you exit the year? Just trying to get a sense of what you expect from a revenue actual uptick. It has been that one million range.

Speaker Change: As your U S coverage and our ramps up to towards that 90% as you exit the year, just trying to get a sense of.

Speaker Change: What do you expect like a revenue actual uptick.

Jack van der Aarde: Because he has been at $1 million range. Thanks.

Matevz Mazij: So, as mentioned in my presentation, we are expected to see our wagering double this year and we're not only focused on distribution and network, we're also very aggressively increasing our wallet share within individual operators with our activities related to placement and promotions with custom games, with exclusive games, and with closer partnerships with those operators. We're trying to deliver what these operators want, trying to understand what their content strategies are moving forward, and we want to be a part of that conversation and deliver the content that is going to be adopted by their audiences and allow them to use the tools that are going to increase the conversion rates, the retention rates, and at the end of the day, allow them to control the player journey, which will eventually allow us to understand the market better and deliver better content and yet again, increase the wallet share and potentially not only double the wagering amount but see higher multipliers in the next few quarters.

Matevz Mazij: Thanks. Yeah. So, as mentioned in my presentation, we are expected to see our wagering double this year, and we're not only focused on distribution and network. We're also very aggressively increasing our wallet share within individual operators with our activities related to placement and promotions with custom games, with exclusive games, and with closer partnerships with those operators. We're trying to deliver what these operators want, trying to understand what their content strategies are moving forward, and we want to be a part of that conversation and deliver the content that is going to be adopted by their audiences and allow them to use the tools that are going to increase the conversion rates, the retention rates, and, at the end of the day, allow them to control the player journey, which will eventually allow us to understand the market better and deliver better content, and, Thank you. That's very helpful. And then, just maybe, just one more for me.

Speaker Change: So as mentioned in my presentation, we are expected to see our wagering double.

Matevz Mazij: We are growing our regulated market distribution by launching with new customers, upgrading existing relationships and obtaining the necessary licenses and certifications to support our customers in all of the most important regulated and regulating eye-gaming markets globally. Our content and product delivery offering is differentiated and value added through our proprietary two-player engagement solution which works across online casino, online sports betting and online lottery products. I will show you how our full product suite coupled with our technical agility allows us to rapidly deploy custom eye-gaming products, technology, content and services solution in diverse regulated markets and we are seeing increased demand in these customer solutions. And lastly, we are always laser focused on judicial cost and control and operational efficiencies in order to maximize recurring profitability and to deliver long-term value.

Matevz Mazij: This year and we're not only.

Matevz Mazij: Focused on distribution and network, we're also very aggressively.

Matevz Mazij: Increasing our wallet share within individual operators with.

Matevz Mazij:

Jack van der Aarde: Okay, got it. Thank you. That's helpful. And then, maybe, just one more for me.

Matevz Mazij: Our activities related to placement and promotions with custom games with exclusive games.

Jack van der Aarde: And with.

Jack van der Aarde: Closer partnerships with those operators were trying to deliver.

Speaker Change: What these operators are one.

Jack van der Aarde: So I'm trying to understand what the what our content strategies are moving forward and we want to be.

Jack van der Aarde: A part of that conversation and deliver.

Jack van der Aarde: The content that is going to be adopted by their audiences and allow them to use the tools that are going to increase the.

Jack van der Aarde: The conversion rates the retention rates and at the end of the day allows them to control the player journey, which will.

Jack van der Aarde: Eventually allow us to understand the market better and and deliver better content and yet again to increase the wallet share and potentially not only double.

Matevz Mazij: So our ambition is to deliver shareholder value by focusing on these core strategic pillars in order to become a premier global eye-gaming content and technology provider.

Jack van der Aarde: <unk> doubled the wagering amount, but see higher multipliers in.

Matevz Mazij: I want to take a look at annualized growth rates for brag over the past five years. As this slide illustrates, Bragg has a proven track record of positive financial growth across both our revenue and adjusted epitom metrics going back to the first full year of operations for the company in 2019. As we have constantly pushed to win new business to obtain supplier licenses for new regulatory restrictions and to continue to develop our award-winning eye-gaming technology, an extensive exclusive content portfolio and earning trust of our customers growth has followed.

Jack van der Aarde: The next few quarters.

Matevz Mazij: I just wondered, given the Olympics season here, just has this been impacting your customers at all? Is it a distraction? Is it just, you know, more stuff for players to be betting on? Is it an overall benefit?

Jack van der Aarde: I'm just curious, given the Olympics season here, has this been impacting your customers at all? Is it a distraction? Is it just more stuff for players to be betting on? Is it an overall benefit? Just what are your thoughts on how the Olympics are kind of impacting the current seasonality? Thanks.

Speaker Change: Okay got it. Thank you that's helpful.

Jack van der Aarde: Just maybe just one more from me I'd just be curious given given the Olympics.

Speaker Change: Season here just as it has been as has been impacting your customers at all.

Jack van der Aarde: Isn't the distraction and just more stuff to offer for players to be betting on is it in overall benefit just what are your thoughts on how the Olympics is kind of impacting.

Jack van der Aarde: The current seasonality thanks.

Matevz Mazij: Just what are your thoughts on how the Olympics are kind of impacting the current seasonality? Thanks. I don't think the Olympics have impacted the results of our operators. July, August, and, to a certain extent, September are always a sort of a low season.

Matevz Mazij: I don't think the Olympics have impacted the results of our operators. July, August, to a certain extent, September is always a sort of a low season. The Euro was much more important for our operators, and we have seen operators acquire and convert.

Speaker Change: I don't think the Olympics have impacted.

Matevz Mazij: The results of our operators July August to a certain extent September is always a sort of a low season.

Matevz Mazij: We're on track to quadruple our revenues in five years and taking our compound annual growth rates for 2019-2024 period and for 2024 estimates we're taking our guidance midpoints here. We are proud to be on track to deliver 32% keger over five years for revenue and 76% keger for adjusted epitom. And we aim to continue with our positive growth story into 2025 and beyond.

Matevz Mazij: The Euro was much more important for our operators, and we have seen operators acquire and convert larger amounts of end users. And that was very positive, obviously, for them and, essentially, for us. And we're going to see results from that event of Euros and possibly also the Olympics, but it's less impactful for the rest of the year.

Matevz Mazij: Euro was a much more important for for our operators.

Matevz Mazij: We have seen.

Matevz Mazij: Operators.

Speaker Change: Choir and convert.

Matevz Mazij: Hmm.

Speaker Change: Larger amounts of.

Speaker Change: Of end users and.

Speaker Change: That was very positive obviously for.

Matevz Mazij: For them and essentially for us and we're going to see results of those of that event of the of euros and possibly also Olympics, but it's less impactful.

Matevz Mazij: As Bragg has consistently grown, so has the global eye-gaming market as a whole, something that analysts project to continue into the future. According to data from H2 gambling capital, the global regulated online casino market in 2024 is estimated at 32 billion US dollars in growth-gaming revenue, and that is projected to almost double to 63 billion US dollars by 2029. With our broad distribution reach for content and our ability to rapidly adapt, certifying, deploy our iGaming technology for different regulatory regimes, we are extremely well positioned to capitalize on the overall trends towards iGaming regulation in more jurisdictions globally and crucially we aim to capture an increasing proportion of this growing global market.

Jack van der Aarde: What are your thoughts on the Te childhoodathon?

Jack van der Aarde: In the rest of the year.

Matevz Mazij: Okay, great. I appreciate the color. Thank you. With no further questions, this concludes today's conference call. You may now disconnect. [music]

Jack van der Aarde: Okay, great. I appreciate the color. Thank you.

Speaker Change: Okay, Great I appreciate the color. Thank you.

Operator: With no further questions, this concludes today's conference call. You may now disconnect.

Speaker Change: With no further questions. This concludes today's conference call you may now disconnect.

Operator: [music].

Operator: No.

Matevz Mazij: Between 2024 and 2029, the global Kager in iGaming is projected at 15% rising to a 20% when looking at the North American market below. These projections are based on the existing regulatory status quo. We're cautiously optimistic that the new states with significant populations such as Ohio may follow the trend of last few years and introduce a regulatory framework for the casino in the coming years, further expanding the size of the market in the United States.

Operator: [music].

Matevz Mazij: While online sports betting is regulated in far more US states, it is online casino, our specialty as a supplier, which offers the more stable margins. And pressures on sportslet operators as evidence by several brands leaving the United States markets in recent months add to our belief that demand for high quality online casino suppliers, which help the operators effectively manage the delivery of content, control the player journey, and which deliver profitable growth will only continue to grow in North America.

Matevz Mazij: Despite the size and scope of our content and turnkey solutions offering, Brad's business model is relatively straightforward in that operator partners utilizing our services, whether for iGaming content, technology, or our other services, typically pay us a share of the revenue derived from the usage of that content. As the example on the slide illustrates, for Brad to achieve 100 million US dollars in revenue share, our operator partners must generate approximately 1 billion US dollars in gross gambling revenue through our content, technology, and services, which in turn is typically generated from around 23 billion US dollars in player wagering.

Matevz Mazij: Our business model is scalable. As our customers grow, we grow. As we launch with new customers or enter new markets, expanding our distribution and reach, we grow. And we are not content to just grow with the market. We have a huge opportunity to grow our share of the market.

Matevz Mazij: Taking the US market alone, today our share of the online casino market as a content provider to US operators is less than 1%. We are already on track to double wagering in the US in 2024, compared to last year. And we are focused on continuing to aggressively grow our market share in this growing market.

Matevz Mazij: Focusing in on the United States, we take an Operator-centric approach, and in the first half of this year we have been reconnecting with our customers to understand exactly how our content can deliver for their strategies. I already mentioned that our US wagering is set to double in 2024 compared to last year. And as we continue to refine our content roadmap to deliver for our customers, simultaneously we are expanding our reach, giving our new content launches greater impact.

Matevz Mazij: Our second quarter operator launches with Fanzio and Ben MGM in Pennsylvania, and our recent launch with Golden Nugget in New Jersey. Take us to approximately 70% market reach in the US today for our newest gains and technology. That's up from around 50% at the end of the first quarter of this year. And the momentum is set to continue. We're on track to be live with our newest content with all of the key operators listed, as well as with other valued US operators partners, taking us to approximately 90% coverage of the US market by the end of the year.

Matevz Mazij: We're excited about the US because of the opportunity, but in all we're licensed, certified or otherwise compliant in over 30 eye gaming jurisdictions globally, including the largest regulated online casino markets in the world. Our extensive global network allows us to leverage not only our exclusive content portfolio, but our entire suite of eye gaming technology, products and services. For example, our brag hub aggregation coupled with huge player engagement is currently in high demand in Latin and is poised to player crucial role for operators looking to enter the market.

Matevz Mazij: By leveraging the platform operators gain immediately access to a comprehensive portfolio of content right from day one with the added benefit of being able to leverage all the great engagement tools we offer through a single integration. The combination of our content and technology, not only enhances growth opportunities, but also positions Latin America as a key region for us moving forward.

Matevz Mazij: Meanwhile, in highly regulated and established eye gaming markets in Europe, we are seeing continued success in our parameter in key solutions delivery. In providing these solutions, we're leveraging data and our agility strengths to optimize the online casino, sports book and lottery performance of an ever increasing number of customers as illustrated in the table show. We're specialists in developing custom builds and fully localized palm solutions for regulated eye gaming markets. And as proof of this, we've added two new palm customers and have powered the launch of three additional sports book products for our customers since the start of the second quarter.

Matevz Mazij: This extensive experience in product delivery along with our data driven approach to product development, gives us a competitive advantage, which we pass on to our pan and Turkey customer. It's an advantage which helps our customers control the player journey, providing the right content in the right place and importantly at the right time. Delivering the full gaming ecosystem also enables opportunities for us to optimize the delivery of our own exclusive content portfolio, adding extra value for Bragg and its shareholders.

Matevz Mazij: And we're not resting on our laurels. We're constantly innovating using our game recommendation engine and the latest in AI driven insights to revolutionize existing eye-gaming marketing strategies, creating more effective campaigns and maximizing profits for our customers. Maximizing profits for our customers obviously means maximizing profits for Bragg. We have invested significantly in our remote gaming server, which hosts and distributes proprietary and third-party exclusive game portfolios. The scalable platform facilitates future growth through existing infrastructure for new games and distribution.

Matevz Mazij: I am pleased with our continued growth in new titles over the quarter, with 17 exclusive games being released in the second quarter of 24. This included a record 12 from Bragg's own proprietary studio. As illustrated here, content from Bragg Studios is a high-margin product for Bragg, while our powered by Bragg partners provide crucial diversification for the business globally. We're building a critical mass of revenue generating content, even as we release new games, existing content continues to generate revenues in the long term.

Matevz Mazij: We will focus on delivering our roadmap of top performing games as we move into the second half of the year. And our latest game releases in the first half of the 2024 have been positively received by customers and will continue to monitor track and respond to trends and feedback from customers as we move into the third quarter and beyond. We also continue to invest in our fused platform developing deeper relationships with our partners to maximize player engagement and to provide exceptional player experience.

Matevz Mazij: With the introduction of casino and sportsbook engagement tools such as jackpots and recommendation engines we allow our operators to fully control the player journey and therefore maximize operator profits which in turn grows Bragg profits. Our product owners and analysts leverage the extensive data points we track to constantly optimize our algorithms and improve our engagement tools. We put the end user first, developing engaging content solutions and using data to enhance their experience.

Matevz Mazij: And because we know our own products best our teams work hand in hand with operators to unlock the value of our tools in order to reach their specific goals. Miles. Whether that be player sign-up, retention or VIP management, always with the goal of providing a differentiated engagement experience and enhancing the player experience in order to maximize profits. We have a lineup of operator promotions that we will be running on our key titles through our engagement platform.

Matevz Mazij: And so to conclude, Bragg's second quarter revenue grew by 0.5% compared to the same period of last year to 24.9 million euros, representing a record second quarter for the company. Our adjusted EBDA in the second quarter of 2024 dropped by 24% year-over-year to 3.6 million euros, while our gross profit decreased by 12% to 12.4 million euros over the same period. As Robbie has discussed, these expected decreases were due to changes in our product mix.

Matevz Mazij: However, we are pleased to report that revenue adjusted EBDA and gross profit were up on a sequential basis when compared to the first quarter of 2024, and we are expecting robust trading in the second half of the year. We've already increased our distribution coverage in the United States for our newest content to 70% of the total addressable market, and we're projecting to increase that to 90% coverage by the end of the year. As Robbie discussed earlier, remaining lens convertible depth has been settled in cash post quarter end.

Matevz Mazij: We're currently tracking to the lower end of our full-year revenue and adjusted EBDA guidance with ranges of 102 to 109 million euros for revenue, and 15.2 to 18.5 million euros for adjusted EBDA. Finally, we shared that the special committee continues to advance the strategic alternatives review process, and I want to reiterate that our board and management team are 100% focused on all opportunities for maximizing shareholder value.

Matevz Mazij: Thank you for listening.

Jail: I'd like to take this opportunity to pay tribute to the entire grant team for their continued on wavering hard work and commitment during this quarter, and now I will turn the line back to the operator and Robbie, and I will be happy to take any questions. Thank you.

Operator: The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again.

Operator: If you're called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset to ensure that your phone is not on mute when asking your question.

Gianluca Tucci: Your first question comes from the line of Gianluca Tutti of Haywood Securities. Your line is open. Hi, good morning, guys.

Matevz Mazij: Just on the outlook, if you look beyond this year, what do you expect the bulk of the growth to come from? You've done a good job growing outside of North America, but what's it going to take to see that similar type growth here in North America? Hi, network in North America launching new clients in United States and launching new jurisdictions, new eye game jurisdictions in the United States and hopefully launching new jurisdictions in both Latin America and potentially Canada, we will see growth coming from proprietary content and third party exclusive content and we will see growth coming from Pam and Managed Services, particularly in Latin America.

Matevz Mazij: We will also see growth in both proprietary and third party content and third party exclusive content distribution and improved positioning and improved usage of our content in Europe and we will hopefully see new regulations or new jurisdictions regulate in Europe where clients are going to use alternative solutions.

Matevz Mazij: Okay, thanks, Matt. And like, you know, just on the customer mix, Bragg had a couple new Pam customers announced lately. I'm just wondering, how does the pipeline, how does it look at this point in terms of the combination of potential Pam new customers and potential new content partners or new content customers, how does the pipeline split right now? So we have a very strong pipeline of turnkey solution clients. So these are clients that use our Pam or Managed Services, obviously use our product delivery platform hub where we deliver aggregated content and if that is the case, also third party managed sports book and all of these clients are automatically are proprietary content clients.

Matevz Mazij: So we have a number of those types of clients in the pipeline both in Latin and Europe, we'll call the rest of the world market. We also have a number of clients in the pipeline in both Europe and North America that are potentially taking our hub or aggregation platform and our proprietary third party content. And I would think that we're currently very focused on getting our content distributed primarily in North America. I think that the biggest growth is going to come from that market, but equally obviously trying extremely hard to win deals that are on our desks for Pam and Thanks for that, Matt.

Robert Bressler: And then just lastly, perhaps for Robbie, but in the past it was mentioned that the company expects to return to growth on gross margin in 25. Is that still the plan as of today, Robbie? Yeah, I believe so. So as Matt mentioned, as we increase the concentration of PAM and managed service customers and RGS exclusives and proprietary content, we should see our profit margins increase. And I believe we are on track to start seeing that.

Gianluca Tucci: Okay, thanks, guys.

Operator: Thank you.

Eric: Your next question comes from line of Jordan Bender of JMP Securities. Your line is open. Good morning, everybody. This is Eric on for Jordan. My first question for Robbie. I know it hasn't been long with the company, but is there anything you look to change within the business of a financial perspective? Correct. It hasn't been very long, but it has been a very busy July. I think from a financial perspective, having good strengths in our balance sheet and good optionality when it comes to opportunities we want to invest in is important.

Eric: So depending the outcome of the special committee, I think we'll look to see what can be done to have those sorts of options for us. I think having the loan that we received recently has helped just with flexibility, but more medium to long-term, assuming we are operating status quo, I think the market is right for interesting opportunities, potentially from a partnership or M&A perspective. And I, again, want to have the flexibility and our balance sheet to be able to potentially pursue something like that.

Matevz Mazij: Great. And just to follow up, you guys have been smoking out, speaking on the past few quarters or from entering new and regulated markets. Is that progressed? Interview expected normal ramp within those markets? And separately, New Zealand is looking to legalize online gaming in some fashion. Are there any opportunities to expand there? Thank you guys. Yes, so we have recently entered the market, directly, newly regulated market in Peru. We obtained the approvals and are obviously allowed to distribute content in that market where very, very active in the recently regulated Brazilian market, we are very, very excited about new jurisdictions, such as New Zealand, Finland, and some other markets in Europe that is obviously unclear as to what the time is going to be.

Matevz Mazij: And we're not only obviously closely monitoring, but actively participating in conversations with potential operators in those markets. There is hopefully going to be movement in the US as well, where we hope that there are going to be new jurisdictions that are going to allow eye gaming in the future. And we're very positive about our ability to deliver. We have always been on the forefront of that process. And one of the first companies that have entered these markets, I mean very good example of that, is Holland, where we launch pretty much.

Matevz Mazij: Day 1, and have seen major success coming from that, and we're gearing up for these changes in these jurisdictions and expect to be seeing similar success in some of these revisions, whether it's going to be paramount turnkey or just aggregation of content you have to see, but very optimistic about that, yes.

Jack Vender: Your next question comes from line of Jack Vender, R.D, of Maxim Group. Your one is open. Okay, great.

Matevz Mazij: Good morning. Thank you for taking my questions. To mess, maybe a question on just circle back on the US. You know, US revenue has been around 1.1 and 1.1 million. It looks like in the first quarter and the second quarter. Maybe just a little more color. Do you expect this quarterly run rate of like a million to start picking up significantly then, as your US coverage kind of ramps up towards that 90% as you exit the year?

Matevz Mazij: Just trying to get a sense of what you expect from like a revenue actual uptick, because it has been that 1.0 million range. Thanks. Yeah, so as mentioned in my presentation, we are expected to see our wagering double this year. And we're not only focused on distribution and network, we're also very aggressively increasing our wallet share within individual operators with our activities related to placement and promotions with custom games, with exclusive games, and with closer partnerships with those operators.

Matevz Mazij: We're trying to deliver what these operators want and trying to understand what their content strategies are moving forward. And we want to be a part of that conversation and deliver the content that is going to be adopted by their audiences and allow them to use the tools that are going to increase the conversion rates, the retention rates, and at the end of the day, allow them to control the player journey, which will eventually allow us to understand the market better and deliver better content. And yet again, increase the wallet share and potentially not only double the wagering amount, but see higher multipliers in the next few quarters. Okay, got it. Thank you. It's helpful.

Matevz Mazij: And then just maybe just one more for me. I'm just curious given given the Olympics season here. Has this been impacting your customers at all? Is it a distraction? Is it just more stuff for players to be betting on? Is it in overall benefit? Just what are your thoughts on how the Olympics is impacting the current seasonality? Thanks. I don't think the Olympics have impacted the results of our operators. July, August, to a certain extent, September is always a low season.

Matevz Mazij: Euro was much more important for our operators and we have seen operators acquire and convert, and larger amounts of end users, and that was very positive, obviously, for them, and essentially for us, and we're going to see results of that event of the Euro's, and possibly also Olympics, but it's less impactful in the rest of the year. Okay, great, I appreciate the color, thank you.

Operator: With no further questions, this concludes today's conference call, you may now disconnect.

Operator: [inaudible]

Q2 2024 Bragg Gaming Group Inc Earnings Call

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