Canada's Bragg Gaming Q2 revenue falls on Netherlands contract rolloff
Canada's Bragg Gaming Q2 revenue falls on Netherlands contract rolloff
Overview
Canada igaming technology provider's Q2 revenue fell 12% yr/yr, missing analyst expectations
Adjusted EBITDA was flat yr/yr, with margin rising due to cost reductions
Company withdrew 2026 financial guidance after Drayton International acquisition
Outlook
Company withdraws previously issued 2026 revenue and Adjusted EBITDA guidance after Drayton acquisition
Bragg says it lacks a reasonable basis to forecast the combined business for the remainder of 2026
Company's focus is on integrating Drayton and establishing a new operating model and cost base
Result Drivers
NETHERLANDS CONTRACT ROLLOFF - Co said Netherlands revenue fell 14% yr/yr due to expected end of legacy platform contracts after customer migrations
NORTH AMERICA CONTENT GROWTH - Revenue from proprietary content in Canada and the U.S. rose 44% yr/yr and 25% from Q1
COST REDUCTIONS - Adjusted EBITDA margin expanded due to compensation savings from headcount reductions and a favorable change in bad debt provisions
Company press release: ID:nBw2Sy5W5a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | EUR 22.90 mln | EUR 24.07 mln (4 Analysts) |
Q2 Loss Per Share |
| EUR 0.11 |
|
Q2 Net Loss |
| EUR 2.90 mln |
|
Q2 Adjusted EBITDA |
| EUR 3.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Bragg Gaming Group Inc is C$6.80, about 174.2% above its August 12 closing price of C$2.48
Reuters Recommended Reads
Aug 13 - Entain H1 net gaming revenue rises as World Cup boosted volumes
Aug 12 - UK's Evoke H1 adjusted EBITDA down on higher gaming duties
Aug 11 - South Korea's DoubleDown Q2 revenue beats estimates, helped by WHOW Games contribution
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Bragg Gaming
See all newsBrief: Bragg Gaming Group Appoints Morten Tonnesen As Interim CEO
Canada's Bragg Gaming Q2 revenue falls on Netherlands contract rolloff
Brief: Bragg Gaming Announces 19% Global Workforce Reduction
Brief: Bragg Gaming Group Announces Closing Of Private Placement With Participation From Insiders And Drayton International's Matt Davey
Canada's Bragg Gaming Q1 revenue edges up, beats estimates