Good morning, everyone. My name is Jayel and thank you for joining the Second Quarter of 2024 Earnings Conference Call for Bragg Gaming Group. Shortly, I will hand the call over to Bragg Gaming Group CEO, Matevz 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. If you have not already done so, you can follow this 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 open 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. 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 market 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 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 Bragg Gaming Group’s recently filed press release and other publicly available disclosure.

Good morning, everyone. Good morning, everyone. My name is Matevz Mazij. I’m Chairman and CEO of Bragg. On this call, I’m going to make some additional 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 area 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. 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. 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. 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 placed 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. Robbie has a wealth of experience across the iGaming and financial services industries, including from his time at Valid Corporation and Ernst & Young. In May, we announced that Neill Whyte, formerly of…

Thank you, Matevz, 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 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. As expected, gross profit and EBITDA were down compared to second quarter of last year. Q2 2024 gross profit decreased by 10% to €12.4 million, with gross profit margin 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%. 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 million to €109 million and €15.2 million to €18.5 million, respectively, noting that we are currently tracking to the lower end of the guidance ranges provided. 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…

Thank you, Robbie. Now in 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. We’re an internationally focused business with offices around the globe, and we have more than 450 employees spread across these offices. 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. 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, service technology and through our content aggregation solution delivered by our Bragg Hub product delivery platform. In tandem, we’re providing cutting-edge turnkey technology solutions such as the Bragg player account management platform and our innovative Fuze marketing, promotional and engagement tool set. We are 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 iGaming plants. 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 of and…

[Operator Instructions] Your first question comes from the line of Gianluca Tucci of Haywood Securities. Your line is open.

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 have done a good job growing outside of North America, but like, what’s it going to take to see that similar type growth here in North America?

Hi Gianluca, this is Matevz speaking. As we expand our distribution network in North America, launching new clients in 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 to exclusive content, distribution and improved positioning and improved usage of our content in Europe, and we will hope to see new regulations or new jurisdictions regulated in Europe where clients are going to use our turnkey solutions.

Okay. Thanks Matevz. And like just on the customer mix, Bragg has had a couple of new PAM customers announced. I am 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 is the pipeline split right now?

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. So, we have a number of those types of clients in the pipeline, both in LatAm 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. And I would think that we are 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 Matevz. 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?

Yes, I believe so. So, as Matevz mentioned, as we increase the concentration of PAM and managed service customers and RGS exclusive and proprietary content, we should see our profit margins increase. And I believe we are on track to start seeing that.

Okay. Thanks 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 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 from 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 a 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 will 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 in our balance sheet to be able to potentially pursue something like that.

Great. And just a follow-up, you guys have been speaking on the past few quarters from 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.

Yes. So, we have recently entered the market, the newly regulated market in Peru. We obtained the approvals and are obviously allowed to distribute content in that market. We are 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 timeline is going to be. And we are 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. And we are 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 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 are 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 PAM or turnkey or just aggregation of content yet to see, but we are optimistic about that, yes.

Your next question comes from the line of Jack Vander Aarde of Maxim Group. Your line is open.

Okay. Great. Good morning. Thank you for taking my questions. Hey Matevz, maybe a question on just circling back on the U.S. U.S. revenue has been around 1, 1.5 – €1 million 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 €1 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 in like a revenue actual uptick – it has been that €1 million range. Thanks.

Yes. So, as mentioned in my presentation, we are expected to see our wagering double this year. And we are not only focused on distribution and network. We are 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 are trying to deliver what these operators want, I am 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 and helpful. And then just maybe just one more for me, I am just curious, given the Olympics season here. Just has this been impacting your customers at all? Is it a distraction, just more stuff for players to be betting on? Is it an overall benefit? Just what are your thoughts on how the Olympics is kind of 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 sort of a low season. 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 are going to see results of those – of that event of euros and possibly also Olympics, but it’s less impactful in the rest of the year.

Okay. Great. I appreciate the color. Thank you.

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