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Bragg
Bragg Gaming Group 2021 Third Quarter Revenue Rises 9.9%
New Proprietary Online Content, Market Expansion and Customer Additions
Driving Continued Quarterly Growth and Increased Forward Outlook
Raises Full Year 2021 Revenue Guidance to EUR €55-56 million (USD $65-66 Million[1])
and Adjusted EBITDA to EUR €6.6-€6.8 million (USD $7.8-8.0 million); Increases Full Year 2022 Revenue Guidance by 9% to €59-61 million (USD $70-72 Million)
Bragg Gaming Group, a global B2B gaming technology and content provider, today reported financial results for the third quarter ended September 30, 2021, provided an update on its strategic growth initiatives and raised its full year 2021 revenue and Adjusted EBITDA and full year 2022 revenue guidance.
Summary of Q3-21 Financial and Operational Highlights
Euros (Thousands) | Q3-21 | Q3-20 | % Change |
Revenue | € 12,874 | € 11,714 | 9.9% |
Adjusted EBITDA | € 1,418 | € 1,834 | -22.7% |
Adjusted EBITDA margin | 11.0% | 15.7% | -4.7% |
Operational | Q3-21 | Q3-20 | % Change |
Wagering revenue (Euros) | € 3.2B | € 3.0B | 4.8% |
Unique players[2] | 2.1M | 1.9M | 14.4% |
Revenue / top 10 customers | 54.3% | 55.6% | -1.3% |
Select Recent Strategic Development Progress
- On August 27, Bragg’s common shares began trading on the Nasdaq Global Select Market.
- Bragg continues to diversify its European market penetration, including earlier activations in Spain and Denmark followed by Greece in the third quarter.
- In October, the Company entered the newly regulated market in the Netherlands with operators including state-owned Holland Casino, the state-owned Lottery (Nederlandse Loterij) and BetCity.nl.
- In October, the Company entered into an integration agreement with Playtech that will see the full range of ORYX Hub games become available to operators utilizing the Playtech Games Marketplace
platform in markets such as Spain, Italy, Switzerland, the Netherlands, the UK, Mexico and Latin America. The Company believes the integration with Playtech offers material medium and long-term growth opportunities for its existing third-party content and for its future in-house developed proprietary content. In addition, the agreement with Playtech will further drive Bragg’s strategic shift into new regulated markets and focus on supplying larger Tier 1 iGaming operators. - During the third quarter the Company launched nine new customers.
- The Company continues to actively pursue and prepare for entry into new online gaming markets, including Europe’s two largest iGaming markets, the UK and Italy. Contributions from these two markets are expected to begin in 2022. The Company has applied for licenses in New Jersey, Pennsylvania and Michigan, and is in the process of applying for a license in Ontario.
- During the third quarter, the Company launched 13 new exclusive games via its ORYX Hub in partnership with third-party studios, and two new proprietary games from its in-house studio.
- As of September 30, 2021 the Company’s Wild Streak game development studio had nine online casino games live in key iGaming markets such as New Jersey, Michigan, the UK and other regulated European jurisdictions. Wild Streak also recently expanded its relationship with Sega Sammy Creation Inc., whereby Sega Sammy will develop two additional Wild Streak games that are popular in social and online casinos — Dragon PowerTM and Egyptian MagicTM — for land-based casinos.
- The Company expects to complete its acquisition of Spin Games LLC (“Spin Games”) in the current quarter, pending final regulatory approvals from various U.S. states’ gaming commissions. Upon completion of the transaction, Bragg will gain access to key strategic operator relationships in the U.S. where Spin Games has over 30 customers, including leading iGaming operators. The Company has completed the technical integration between Spin Games and its ORYX Hub distribution platform.
CEO Comments
“Bragg’s strong 2021 third quarter financial performance and our increased guidance reflects the contributions from our comprehensive growth initiatives, including the consistent progress we have achieved with new market diversification and our ability to offer more new high-performing propriety and exclusive third-party online content,” said Richard Carter, CEO of Bragg Gaming Group.
“During the third quarter, our newest markets performed above our expectations and this momentum continues in the current quarter to-date. Besides the benefits from new market penetration, our recent proprietary games from our in-house development studios are also driving growth. Third quarter revenue rose 9.9% year over year to EUR €12.9 million (USD $15.2 million) while Adjusted EBITDA decreased by 22.7% to EUR €1.4 million (USD $1.7 million) primarily reflecting our ongoing investments in our development teams and infrastructure to support our growth initiatives.
“Bragg continues its transformation into a leading, content-focused, B2B iGaming provider with a scalable technology stack featuring unique player engagement tools that consistently drive strong game performance. Our technology advantages, combined with our ability to offer an increasing number of high-performing proprietary and third-party exclusive games, are expected to boost our ability to deliver strong financial results as we continue to expand our presence into new North American and European markets. This includes the further penetration of our more recently entered markets such as the Netherlands where we have quickly achieved an attractive double-digit market share. Overall, our market expansion initiatives are expected to increase our total addressable market (“TAM”) six-fold in 2022 to more than USD $18 billion. Our acquisition of Spin Games, which we expect to complete by year end, will also help accelerate our entry into North American iGaming markets driven first by high-performing European online content to be closely followed by proprietary content developed specifically to address the U.S. and Canadian markets.
“We also intend to increase the number of proprietary online games developed by our internal development studios, as well as the number of exclusive third-party games we offer, which will support our focus on growing Adjusted EBITDA margins. From zero in-house developed games in 2020, we have established a strong proprietary new game pipeline and expect that an increasing proportion of our exclusive titles launched next year will be internally developed. Given the significantly better economics associated with the distribution of our proprietary content, leveraging our leading player engagement tools with our proprietary games remains one of our highest priorities as it will lead to consistent top and bottom line growth.”
Mr. Carter concluded, “Our ability to simultaneously generate positive Adjusted EBITDA while investing to grow our scale and technology capabilities enables Bragg to more effectively help online casino operators connect with their players, resulting in consistent market expansion and market share improvement. As a result, we continue to deliver strong near-term financial performance while further establishing the foundation for sustainable Adjusted EBITDA growth, as reflected in our raised full year 2021 outlook as well as the increase in our outlook for 2022 revenue growth. Notably, our updated guidance highlights the underlying momentum we are achieving in our business that is being driven by our growth initiatives that are focused on entering new markets, adding new clients and developing and releasing more proprietary titles.”
Third Quarter 2021 Financial Results and other Key Metrics Highlights
- Revenue increased by 9.9% to EUR €12.9 million (USD $15.2 million) in Q3 2021 compared to EUR €11.7 million (USD $13.8 million) in Q3 2020, inclusive of a full quarter of contributions from Wild Streak.
- Wagering revenue generated by customers increased 4.8% to EUR €3.2 billion (USD $3.8 billion) compared to EUR €3.0 billion (USD $3.6 billion) in Q3 2020.
- The number of unique players using Bragg games via its Oryx Hub distribution platform and content increased by 14.4% to 2.1 million, from 1.9 million in Q3 2020.
- Gross profit increased by 30.1% to EUR €6.6 million (USD $7.8 million) from EUR €5.1 million (USD $6.0 million) in Q3 2020, reflecting higher revenue and an 8.0 basis point margin improvement to 51.4%. The margin expansion is primarily the result of the continued shift towards a higher proportion of revenues from iGaming and turnkey services, which have lower associated cost of sales when compared to games and content.
- Net loss for the period was EUR €2.5 million (USD $2.9 million), a decline in the net loss of EUR €0.7 million (USD $0.8 million) from Q3 2020, primarily due to the higher gross profit and a reduction in costs related to deferred consideration payable, partially offset by the incremental increase in employee costs and exceptional professional fees as a result of the Nasdaq listing.
- Adjusted EBITDA was EUR €1.4 million (USD $1.7 million), a decrease of 22.7% compared to EUR €1.8 million (USD $2.2million) in Q3 2020. Adjusted EBITDA margin decreased by 4.7 basis points to 11.0%, reflecting increased salary and subcontractor costs as part of the Company’s investment in the expansion of its software development, product and management functions.
- Cash and cash equivalents as of September 30, 2021 was EUR €20.3 million (USD $24.0 million)
Raises Full Year 2021 Revenue and Adjusted EBITDA Guidance and Full Year 2022 Revenue Guidance
Reflecting the Company’s operating momentum related to operations in newer markets and an increasing number of customers, Bragg today raised its outlook for 2021 full year expected revenue to EUR €55-56 million (USD $65-66 million) and Adjusted EBITDA to EUR €6.6-6.8 million (USD $7.8-8.0 million), compared to its previously provided revenue and Adjusted EBITDA full year outlook of EUR €49 million (USD $57.8 million) and EUR €5.4 million (USD $6.4 million), respectively. In addition, the Company raised its full year 2022 revenue guidance to a new range of EUR €59-61 million (USD $70-72 million), compared to the initial expected range of EUR €54 million to EUR €56 million (USD $63.7 million to USD $66.1 million) which was provided on August 11, 2021 and provided Adjusted EBITDA guidance of EUR €6-7 million (USD $7.1-8.3 million).
Bragg
Bragg Gaming Group to Attend the Peru Gaming Show 2024
![bragg-gaming-group-to-attend-the-peru-gaming-show-2024](https://igamingradio.com/wp-content/uploads/2024/06/131912-bragg-gaming-group-to-attend-the-peru-gaming-show-2024.png)
Bragg is going to attend the Peru Gaming Show taking place at Limas’s Jockey Exhibition Center on the 12-13 of June, 2024.
Recently registered as an approved service provider by the Peruvian Ministry of Foreign Trade and Tourism (MINCETUR), Bragg Gaming Group is now authorized to distribute online casino games, including Bragg’s proprietary and exclusive games portfolio, via the Bragg HUB aggregation platform to operators in the Latin American iGaming market.
“Join us in Lima to discuss future business opportunities with Bragg Gaming Group. Our team will be available to show how our innovative technology, premium content, and comprehensive managed services solutions can elevate your business,” the company said.
As a fully compliant service provider in Peru, Bragg Gaming Group offers local operators tailored solutions to efficiently manage their entire product suite. Bragg’s offerings are designed to meet the unique needs of the Latin American market, ensuring compliance and optimal performance.
Bragg
Bragg Announces US$7 Million Secured Note Financing
![bragg-announces-us$7-million-secured-note-financing](https://igamingradio.com/wp-content/uploads/2024/04/130609-bragg-announces-us7-million-secured-note-financing.png)
Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced the issuance of a secured promissory note in the principal amount of US$7 million (the “Note”) to certain entities controlled by Doug Fallon, Managing Director of Group Content of the Company and the Founder of Nevada-based Wild Streak Gaming. The Note matures on April 25, 2025 and bears interest at an annual rate of 14%, payable quarterly.
“This financing provides the Company’s balance sheet with additional flexibility as we continue to review strategic alternatives for maximizing shareholder value and execute against our strategy,” said Matevž Mazij, Chief Executive Officer. “We would also like to thank The Lind Partners for their cooperation in providing a waiver consenting to the Note funding”.
“After reporting another consecutive full year of strong revenue, gross profit and Adjusted EBITDA growth in 2023, we are exceptionally well placed to capitalize on our in-demand content, product and technology verticals in major iGaming markets in North America, Europe and LatAm. From our market-leading player account management (“PAM”) platform and turnkey solutions to our unique casino content aggregation offering with Fuze promotional functionality and player journey management, as well as our ever-growing exclusive content portfolio, our product strategies are refined for each market we operate in.”
The Toronto Stock Exchange (the “TSX”) has conditionally approved the issuance of the Note. The Company may use the net proceeds from the Note for general working capital purposes and strategic initiatives.
Bragg
Bragg to Attend the SBC Summit North America, 8-9 May, 2024
![bragg-to-attend-the-sbc-summit-north-america,-8-9-may,-2024](https://igamingradio.com/wp-content/uploads/2024/04/130467-bragg-to-attend-the-sbc-summit-north-america-8-9-may-2024.jpg)
Bragg is going to attend the SBC Summit North America taking place at the Meadowlands exposition center, New Jersey in May.
“See you in the Garden State to discuss how Bragg’s full-service suite of market leading iGaming content and technology solutions can be tailored to suit the demands of the U.S. market. Connect with members of the team to learn ways Bragg can accelerate your business with our technology, content and managed services solutions. Discover more about our award-winning Player Account Management (PAM), which is leading the way across the European market and in multiple regulated markets. Learn how our cutting-edge content aggregation RGS which already integrates a host of casino, sportsbook and lottery operators and is supported by our leading gamification product Fuze,” the Company said.
Participate in an insightful discussion
Join Bragg Group Director of Content Doug Fallon and fellow panelists at SBC Summit North America to discuss how game design can be leveraged to deliver profitable products in the iGaming industry.
Don’t miss this great panel discussion “Game Design 101: Launching a Profitable Product” taking place on iGaming Stage 3 at 16:00 on Wednesday, May 8.
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