Bragg Gaming Group Inc. · TSX:BRAG
Bragg Gaming — Q2 2023 Earnings Presentation
17 slides from Bragg Gaming's earnings presentation, Aug 10, 2023
Slide 1: Second Quarter 2023 Results Presentation
Second Quarter 2023 Results Presentation August 2023 NASDAQ: BRAG | TSX: BRAG
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") which are based upon Bragg Gaming Group Inc.'s (the "Bragg") current internal expectations, estimates, projections, assumptions an
Slide 3: Table of Contents
Table of Contents • Operational Highlights • Financials 2Q23 • Business & Operational Commentary • Outlook & Summary 3
Slide 4: Operational Highlights
Operational Highlights Key developments since April 1, 2023 Top Tier Global Content U.S. Partnerships Distribution Traction Rollout 888 / William Hill Sweden Content cadence increasing New RGS & content live in PA New global agreement B2B license obtained Land-based to online focus Rush Street Inter
Slide 5: Financials
Financials 5
Slide 6: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results 2Q23 Financial Highlights Historical Financial Overview Revenue (EUR,m) Wagering (EUR,b) • Revenue increased by 18.9% to EUR 24.7m 5.5 • Wagering1 generated by Bragg’s customers up by 31.2% 23.7 24.7 5.1 5.1 22.9 4.6 to EUR 5.5b. 20.8 20.9 4.1 19.4 3.8 • Gross p
Slide 7: Second Quarter 2023 Product Mix
Second Quarter 2023 Product Mix 2Q23 Gross Profit Margins Product Mix Continues to Evolve +18.9% Revenue 2Q22 v 2Q23 • Gross profit growth trajectory since 3Q21 as a result of changes in Bragg’s product mix 12.9m 15.8m 19.4m 20.8m 20.9m 23.7m 22.9m 24.7m • Gross profit increased by 18.9% to EUR 13.8
Slide 8: Second Quarter 2023 Adjusted EBITDA Reconciliation
Second Quarter 2023 Adjusted EBITDA Reconciliation Reconciliation Operating Income to Adj. EBITDA Three Months Ended June 30, EUR 000 2023 2022 (1) Depreciation and amortization: the increase in intangibles Operating income 1,271 791 amortization is part of the Spin Games acquisition in June 2022, (
Slide 9: Working Capital and Balance Sheet
Working Capital and Balance Sheet Balance Sheet and Net Working Capital Cash Flow and Financial Resources As at June 30, As at December 31, Six Months Ended June 30, EUR 000 2023 2022 EUR 000 2023 2022 Cash and cash equivalents 10,742 11,287 Operating activities 5,158 7,587 Trade and other receivabl
Slide 10: Financial Focus Areas
Financial Focus Areas A clear plan to further improve financial performance by increasing Gross Profit and AEBITDA margins, to enhance net working capital Revenue Margin Net Working Capital • Diversifying revenue mix, focusing on distribution of • Improving Gross Profit margin by optimizing product
Slide 11: Business & Operational Commentary
Business & Operational Commentary 11
Slide 12: New Tier 1 Commercial Agreements Increase Distribution Reach
New Tier 1 Commercial Agreements Increase Distribution Reach Global distribution agreements with Flutter’s Pokerstars and Adjarabet, and with 888 Holdings, unlock new launches for Bragg content • Leveraging Bragg’s agile tech stack and compatible products resulting in fast time-to-market - • One com
Slide 13: Bragg Studios Content Performance
Bragg Studios Content Performance Expanding Gross Profit through proprietary Bragg Studios and diversified regulated jurisdictions • Streamlined development and deployment of Bragg Studios Bragg RGS Content Gross Profit content, new customers and market expansion is driving Gross Profit increase • P
Slide 14: U.S. Content Strategy: Taking Land-Based Online
U.S. Content Strategy: Taking Land-Based Online Bragg brings popular land-based titles to the online market; demonstrating early traction and potential • Bragg has proven experience in building successful land-based casino games • Bragg develops and deploys proprietary online adaptations of its land
Slide 15: Market Roll-out Strategy
Market Roll-out Strategy Growing Bragg’s distribution by rolling out with key operators, market by market The Netherlands: 88% distribution Switzerland: 99% distribution Michigan: 91% distribution New Jersey: 75% distribution Pennsylvania: 71% distribution Connecticut: 100% distribution Distribution
Slide 16: Outlook & Summary
Outlook & Summary 1 Record first half revenue and AEBITDA for Bragg, including positive net income 2 Utilizing free cash flow to repay convertible security 3 Content-led strategy showing early signs of success 4 Ongoing key commercial negotiations, aiming to extend and expand partnerships 5 Strong c
Slide 17: Thank you
Thank you @ BRAGG