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Bragg Gaming Group Reports Insider Purchases Amid Positive 2025 Projections
TORONTO – Bragg Gaming Group Inc. (NASDAQ: BRAG, TSX: BRAG), an established player in the iGaming sector, has seen notable insider share acquisitions from its management team, indicating considerable confidence in the company’s future performance. The stock is currently priced at $3.28, with a market capitalization of approximately $81.7 million. However, the stock has faced notable fluctuations, with a drop of over 40% in the past year, according to recent data from InvestingPro.
In conjunction with these developments, Bragg has reiterated its optimistic projections for 2025, anticipating double-digit revenue growth, enhanced profit margins, and increased operational efficiency. Formal guidance outlining these expectations is expected to be released in early 2025.
CEO Matevž Mazij highlighted that the increase in insider buying reflects a strong belief among the management team in Bragg’s short-term prospects and a commitment to boosting shareholder value. An analysis from InvestingPro reveals that the stock may currently be undervalued, holding a “Fair” financial health score of 2.47 out of 5. The company is actively seeking to improve liquidity through strategic initiatives, even as its recent review process has concluded, providing valuable insights aimed at refining its financial metrics and bolstering ambition toward its 2025 goals.
Bragg’s positive outlook is fortified by a substantial pipeline of opportunities, which the company believes will sustain momentum into the upcoming year. These forecasts are considered forward-looking statements, subject to various risks and uncertainties that may affect actual performance.
The assumptions and factors influencing Bragg’s forward-looking statements encompass a range of elements, including regulatory environments, operational capabilities, product offerings, customer acquisition, and market expansion activities.
This global gaming entity operates across multiple regulated markets, delivering exclusive content and technology solutions to both online and land-based gaming operators. In the last fiscal year, Bragg reported revenues of $109.3 million, alongside a robust gross profit margin of 51.2%. With a diverse portfolio that includes proprietary brands like Wild Streak Gaming, Atomic Slot Lab, and Indigo Magic, as well as a distribution platform known as the Bragg Hub, the company is well-positioned in the iGaming landscape.
Bragg’s latest communications also indicate a solid performance during Q3, showcasing a year-over-year revenue increase of 16% and an 18% rise in gross profit to EUR 14 million. Additionally, the company noted a significant 40% rise in proprietary content revenue in the U.S. market. Following the conclusion of a strategic review, financial analysis firm Benchmark revised its stock price target for Bragg Gaming from $8.00 to $4.00, while maintaining a Speculative Buy rating. This change came as the consideration for acquisition premiums was eliminated from the valuation.
Looking ahead, Bragg Gaming Group is focused on substantial growth opportunities, especially in the U.S. and Brazil. CEO Matevz Mazij underscored that the company’s strategic direction remains the optimal path for enhancing shareholder value. Furthermore, Bragg has upheld its full-year guidance, projecting significant growth within the U.S. and plans for forays into new markets.
The firm’s revenue projections set expectations between EUR 102 million and EUR 109 million, with adjusted EBITDA predicted to fall between EUR 15.2 million and EUR 18.5 million. Recent efforts are indicative of Bragg Gaming Group’s commitment to prioritizing key markets in the U.S., Canada, Latin America, and Europe, alongside ventures into emerging markets.
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