Bragg Gaming Group Inc.

Good morning, everyone. My name is Regina, and thank you for joining the fourth quarter and full year 2024 earnings conference call for Bragg Gaming Group. I'll shortly hand the call over to Bragg Gaming Group CEO, Mateo Schmazi, who will comment on Bragg's fourth quarter performance and its full year 2024 performance, and Bragg's CFO, Robbie Bressler, who will review and discuss the company's fourth quarter and full year 2024 financial results. I would like to remind you, If you have not already done so, then you can review BRAG's fourth quarter and full year 2024 results presentation on the company's investor website at investors.brag.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 BRAG's financial and operating results for the fourth quarter and full year of 2024. Following these prepared remarks, the conference call will be opened to a question and answer period. I would like to remind you that 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. If you have not already done so, please familiarize yourself with BRAG's full explanation of these risk factors, available on the second slide of BRAG's fourth quarter and full year 2024 earnings presentation, which is titled Forward-Looking Statements and which is published on the website at investors.brag.group. This information is also available in Brag's recently filed fourth quarter and full year press release and other publicly available disclosure. I'd like to turn the call now to Mateusz Mazzi, Chief Executive Officer of Brag.

Good morning, everyone. My name is Mateusz Mazzi. I'm the Chairman and the CEO of Brag. On this call today, I'll start with our fourth quarter and full year operational highlights including our key launches and latest news, and then I'll pass the line to Robbie, who will discuss our latest financial results. When Robbie has given his commentary on the numbers, I'll discuss more about our strategy and operations, as well as our outlook for 2025. And after that, Robbie and I will be more than happy to answer any questions you may have. To start, I want to give a little reminder of who we are. We create and deliver cutting-edge casino games from our in-house proprietary casino game studios as well as on behalf of carefully selected third-party studio partners. With our proprietary player account management software and full in-house developed iGaming technology stack, we empower operators to launch and scale their operations providing them with the tools required to seamlessly launch, run, scale, and optimize their casino, sports betting, and lottery websites for maximum success. And we're focused on enhancing the end user experience, leveraging the huge amounts of data we process using our advanced analytics and powerful AI technologies to enhance player engagement, maximize revenue potential, and drive smarter, more efficient iGaming operations. Now, let me tell you about our journey in the past year. Throughout 2024, we've taken decisive and meaningful steps to support growth across all of our key business areas, a strategy which has delivered a stronger and more resilient business going forward into the future. We've added experience industry experts to the bragg executive team supporting bragg's growth trajectory beginning with the addition of simon dudnik formerly of sports radar as our new chief human resources officer the recruitment of former dgc and micro gaming executive neil white as chief commercial officer to master the keo formerly of camby joined as chief legal and compliance officer and my colleague on this call, Robbie Bressler, a former senior Bally's executive as our chief financial officer. We've increased our market penetration in North America, a hugely important market for us. In October, we launched in Delaware, our fifth U.S. iGaming state, with Rush Street's interactive Pet Rivers online casino. We have continued to expand our North American distribution with notable launches with MGM in Pennsylvania last June, Caesars in Pennsylvania, and Ontario in August. Most recently, we launched our content with DraftKings in Pennsylvania last Friday, March 14th, and with Fanatics in Michigan on Monday this week. We now reach over 90% of the total addressable US iCasino market of over $8 billion, with our proprietary and exclusive online casino content, and our progress on this strategic goal is paying dividends. I can share that during the first quarter of 2025, we are comfortably on track to more than double wagering on our proprietary and exclusive games in North America, compared to what we saw in the first quarter of last year. Our most recent release, Dragon Power Triple Gold, from our in-house studio, Wild Street Gaming, was launched just 12 days ago, but is already looking like it will be the best performing game we have ever released. We're also proud to be forging strategic partnerships, such as our recently announced content development and technology leasing agreement with Caesars Entertainment, leveraging our slots development expertise and proprietary technology, while further strengthening ties with an important top tier US partner. Strengthening our already dominant position in the Netherlands, we supported our existing partners, betnation.nl, comeon.nl, and 7eleven.nl with launches of Sportsbook during 2024 using technology from our fantastic third-party Sportsbook partners. We also added our sixth-time customer in the Dutch market in July by launching hardrockcasino.nl, powered by the BRAC PAM and full iCasino tech stack. Sticking with our PAM, we added our second PAM partner in the Czech Republic, powering the launch of kingspet.cz in June. In the fourth quarter of 2024, we announced that significant insider share purchases have been made, demonstrating management belief and confidence in the business going forward. We have also introduced a new stock appreciation rights incentive plan. This plan aligns senior management with shareholders by rewarding long-term growth with the addition of accelerated vesting in the event of an earlier change of control. We doubled down on our commitment and execution of our strategic growth plans by launching our proprietary and exclusive iGaming content in Brazil on day one of the opening of the regulated market on January 1st, 2025, establishing a strong position in this emerging and important market for BRAC. Lastly, we were pleased to announce recently that we have grown our Canadian footprint into a second province, Quebec, agreeing a content-led partnership with Lotto-Québec, the local provincially licensed monopoly operator. Now I'm going to turn the line over to Robby to discuss our financial results.

Robby? Thank you, Matt, and good morning to everybody. I will now cover our financial results for the fourth quarter and full year of 2024. Total revenue for the fourth quarter was 27.2 million euro, another record high, up 16% compared to the fourth quarter of 2023. Q4 2024 gross profits grew by 31% to 15.8 million euro, with gross profit margins rising by 650 basis points to 58%. Adjusted EBITDA during Q4 also grew by 68% to 4.7 million euro, our fourth consecutive sequential quarter of growth. Our adjusted EBITDA margin was 17%, 530 basis points higher than the 12% we reported in the same period last year. Our performance in Q4 2024 was fueled by the continued expansion of our proprietary content, primarily in North America, allowing total proprietary content across the whole company to reach a record 13.3% of our total revenue in Q4. Growing our proprietary content remains a top strategic priority as it enhances margins and strengthens our competitive position. In addition, revenue from our PAM and turnkey solutions continue to gain momentum, rising to 24% of total Q4 revenue. The combined growth of proprietary content and PAM and turnkey solutions is driving a favorable shift in our revenue mix, reducing dependency on lower margin aggregated third party content revenue. In Q4 2024, aggregated third-party content revenue accounted for just 45% of total revenue, the lowest level in the past eight quarters. Total revenue for the year-end 2024 was €102 million, up 9% compared to 2023. Additionally, 2024 gross profits grew by 8% to €54 million, with gross margin decreasing slightly by 40 basis points to 53%. Adjusted EBITDA for the full year 2024 grew by 4% to €15.8 million, with an adjusted EBITDA margin of 15.5%, reflecting an 80 basis points decline from the prior year. However, as previously noted, our margin performance has improved through 2024, as evident in our Q4 2024 adjusted EBITDA margin, driven by continued shift towards higher margin products. Turning to the balance sheet, as of December 31st, 2024, we had 10.5 million euros in cash and cash equivalents. During the year, we fully settled the remaining balance of the LHIN convertible debt, further strengthening our balance sheet. Our only remaining debt facility is the 7 million USD secured promissory note maturing in April 2025. We are actively working to refinance this facility upon maturity with a more flexible structure, ideally transitioning to a revolving credit facility that provides enhanced liquidity while securing lower borrowing costs. Networking capital, excluding deferred consideration and promissory note, at the end of December 31, 2024, amounted to 11.9 million euros. Looking ahead to 2025, I reiterate the guidance provided in January 2025, where revenue is projected to reach between 117.5 million and 123 million euro, and adjusted EBITDA is expected to rise to between 19 million euro to 21.5 million euro. At the midpoint of our guidance, Revenue is forecasted to grow by 18%, while adjusted EBITDA is expected to rise by 28%, with adjusted EBITDA margins improving by 140 basis points. Finally, we continue to develop a robust pipeline of opportunities that, if realized, could further enhance our 2025 performance beyond the assumptions included in our current guidance. I will now hand the call back over to Matt. Thank you, Robbie.