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||%|
|Adjusted EBITDA margin||9.1%||9.4%||-0.3%||11.9%||3.9%||205.2%|
|Operational||Q4-20||Q4-19||%||FY 2020||FY 2019||%|
|Revenue/ top 10 customers||66%||67%||-1.6%||58%||72%||-18.8%|
- 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
- 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
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:BRAG, OTC: 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.