Breaking News: Bragg Gaming Group Announces Record Fourth Quarter and Full Year 2020 Results | Breaking News: Bragg Gaming Group Announces Record Fourth Quarter and Full Year 2020 ResultsFinancial Buzz

Breaking News: Bragg Gaming Group Announces Record Fourth Quarter and Full Year 2020 Results

B2B gaming platform technology provider Bragg Gaming Group (OTCQX: BRGGF) (TSX: BRAG) (“Bragg” or the “Company“) today released its annual financial results for the three months and year ended Dec 31, 2020.

“We’ve made extraordinary progress in 2020 and are very pleased with the substantial revenue and EBITDA growth that we’ve delivered,” said Adam Arviv, Interim Chief Executive Officer of Bragg. “We continue to expand globally, enhancing our content portfolio and technology offering, and securing new customers across key geographies.”

“We’re particularly pleased with the overall performance of Bragg during 2020 and believe we have built strong foundations to support future market share gains and new market entry,” said Richard Carter, Chair of the Board at Bragg. “Adam and I have taken active leadership roles within Bragg to ensure the future success of the Company. We’re aligned in our strategy to grow the group’s underling operating profit margin and to expand rapidly into new markets, particularly the burgeoning U.S. market. Our extensive experience and wide-ranging industry networks within this constantly expanding market will add significant value for Bragg shareholders. We are now extremely well-positioned to capitalize on the strong growth in the online gaming sector globally.”

FY 2020 financial highlights

  • Revenue1 increased by 74.6% in 2020, up to €46.4M (C$68.7M2), as compared to €26.6M (C$39.3M) for full year 2019, representing a yearly 58.4% CAGR since FY 2018
  • Wagering revenue generated by customers increased by 73.5% to €11.8B (C$17.5B) as compared to €6.8B (C$10.1B) during full year 2019.
  • Adjusted EBITDA3 increased by 432.8%, up to €5.5M (C$8.2M) from €1.0M (C$1.5M) the previous year, with margins increasing significantly from 3.9% to 11.9%, achieved by reaching higher scale and practising firm cost control.
  • Net loss for the period was €14.6M (C$21.6M) compared to a net loss of €11.9M (C$17.7M) in the comparable period, due primarily to the re-measurement of deferred and contingent consideration and the accretion of liabilities for the ORYX earn-out.
  • Cash and cash equivalents as of December 31, 2020 amounted to €26.1M (C$38.6M) compared to €0.7M (C$1.0M) on December 31, 2019.

Q4 2020 financial highlights

  • Revenue increased by 75.7% to €13.8M (C$20.4M), compared to €7.8M (C$11.6M) for the fourth quarter of 2019, representing a quarterly growth of 12.4% CAGR since Q1 2019
  • Quarter over quarter revenue increase of 18%, from €11.7M (C$17.3M) in the third quarter to €13.8M (C$20.4M) in the fourth quarter.
  • Wagering revenue generated by customers up by 50.1% to €3.2B (C$4.7B) compared to €2.1B (C$3.2B) in the fourth quarter of 2019.
  • Increase of 70.1% in unique players4 using Bragg games and content, up to 2.50M from 1.47M during the comparable quarter in 2019.
  • Adjusted EBITDA was €1.3M (C$1.9M), up 70.8% compared to €0.7M (C$1.1M), with a decrease in margins from 9.4% to 9.1%, primarily as a result of professional fees and corporate costs incurred through up-listing from the TSX-Venture Exchange to the Toronto Stock Exchange.
  • Net loss for the period was €5.3M (C$7.9M), in line with Q4 2019 results of €5.3M(C$7.9M).

Selected fourth quarter and full year key performance indicators

Euros (Thousands) Q4-20 Q4-19 % FY 2020 FY 2019 %
Revenue 13,778 7,841 75.7% 46,421 26,592 74.6%
Adjusted EBITDA 1,259 737 70.8% 5,546 1,041 432.8%
Adjusted EBITDA margin 9.1% 9.4% -0.3% 11.9% 3.9% 205.2%
Operational Q4-20 Q4-19 % FY 2020 FY 2019 %
Wagering revenue 3.2B 2.1B 50.1% 11.8B 6.8B 73.5%
Unique players 2.50M 1.47M 70.1% 5.87M 2.75M 113.6%
Revenue/ top 10 customers 66% 67% -1.6% 58% 72% -18.8%

Business highlights

  • Successful launch of 54 B2B operators5 during the period, across a number of global jurisdictions, including 21 operators during the fourth quarter
  • Improved Customers6 revenue diversification, with 58% of revenue derived from the top 10 customers, as compared to 72% in 2019
  • Launched new exclusive content and completed the integration of key leading studios such as Peter & Sons, CandleBets and Arcadem
  • Expanded its geographic presence, with entry into a number of new global markets, including Switzerland, Bulgaria, Portugal, Latvia, Czech Republic and Spain
  • In January 2021, secured a joint venture Agreement with JVH gaming & entertainment group, the largest land-based casino in the Netherlands (JVH group) for iGaming platform (PAM) and turnkey services
  • In January 2021, the Company completed a private placement for €1.9M (C$3.0M), which included participation from the board of directors and management
  • In January 2021, the Company’s common shares and outstanding warrants began trading on the Toronto Stock Exchange senior market
  • In February 2021, Bragg announced the acceleration of its investment in the US and Canadian markets
  • The Bragg board of directors was augmented with the addition of prominent business leader Paul Godfrey in January 2021 and high-profile gaming industry veteran Lara Falzon in March 2021

Ongoing strategy

  • Bragg recently announced the appointment of high-profile gaming industry executive Richard Carter to the role of CEO, effective May 1, 2021
  • Bragg is also in the process of signing on an experienced management team to work with Mr. Carter, extending the Company’s already sizeable competitive advantage in the global gaming industry
  • Bragg continues to focus on expanding its global footprint, particularly in the burgeoning U.S. gaming market, where the total addressable market (TAM) for iGaming is anticipated to be greater than 40B at 100 per cent legalization, the TAM for sports betting is expected to grow to more than $22B once gaming is legalized in all states
  • Bragg will also target Canada, where the TAM for both sports betting and iGaming is projected to be $5-8B upon full legalization
  • Bragg continues to invest in its technical infrastructure, in increasing operational efficiencies, and in deepening its data analytics, gamification and bonuses features
  • Bragg continues to explore strategic M&A opportunities in the U.S. and globally

Year-end 2020 conference call information

Bragg Gaming will host its FY 2020 earnings and business update call on Thursday, March 25, at 8:30am ET.  

Adam Arviv, Bragg’s Interim Chief Executive Officer, along with Ronen Kannor, Bragg’s Chief Financial Officer, and Yaniv Spielberg, Bragg’s Chief Strategy Officer, will host the call.

To join the call, please use the below dial-in information:

US/Canada: +1 270 215 9892
US/Canada (toll-free): + 1 866 997 6681
UK: 0 2031070289 or 0 8000288438
Passcode: 9537997

A reply of the call will be available for seven days following the conclusion of the live call. In order to access the replay, dial +1 404 537 3406 or +1 855 859 2056 (toll-free) and use the passcode 9537997.

About Bragg Gaming Group
Bragg Gaming Group (TSX:BRAGOTC: BRGGF) is a global B2B gaming technology platform provider. With operations across Europe and North America, Bragg is expanding into an international force within the burgeoning global online gaming market. Bragg’s main brand is ORYX Gaming, an innovative business-to-business iGaming platform, casino content aggregator, managed sportsbook and managed services provider, offering cutting-edge content from leading studios.

Sponsored Content Release. Click for Full Disclosure

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!

  • Sponsored Content Release

    FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

    Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the ‘Site’) is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. FinancialBuzz.com has not been compensated directly by any of the companies mentioned here in this editorial unless mentioned otherwise. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For bragg gaming group inc. video production, filming editing, news reporting, financial and corporate news dissemination, FinancialBuzz.com has been compensated five thousand dollars by marketjar media inc. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.financialbuzz.com