TORONTO, Aug. 27, 2020 (GLOBE NEWSWIRE) — Bragg Gaming Group Inc. (TSXV: BRAG, OTC: BRGGF) (“Bragg”, the “Group” or the “Company”) today released its financial results for the three months ended June 30, 2020. Bragg is pleased to announce that the Company continued its strong upward revenue and Adjusted EBITDA[*] growth trajectory over the quarter, achieving 107 per cent revenue growth year-over-year and generating Adjusted EBITDA of €1.8m (C$2.8m) in the quarter as compared to a €0.3m (C$0.5m) loss for the same period in the prior year.
“We’re extremely pleased with the substantial progress we’ve achieved so far in 2020,” said Paul Pathak, Chair of the Board of Directors at Bragg. “We’ve delivered strong revenue and EBITDA growth and have made great strides in diversifying our revenues and reaching new audiences.”
Bragg continues to focus on growing and diversifying its global footprint and winning customers in new jurisdictions, demonstrated by the signing of 11 new customers in the quarter including MaxEnt, SuperBet and Candlebets. The Company also strengthened its unique games portfolio with the launch of an additional 8 games, including games by Gamomat, Kalamba, and Golden Hero.
“As we expand globally, we’ve also continued to invest in our people, platforms and products,” continued Mr. Pathak. “Our entry earlier this year into the burgeoning U.S. gaming market has given us a foundation from which to build our presence, and we’re looking at a number of promising opportunities for growth. We’re also building our presence in new markets, including eastern Europe and Latin America.”
While acknowledging the widespread adverse impact of the COVID-19 pandemic on people and businesses globally, Bragg’s business has experienced a significant uptick in consumer engagement and revenue, as the online casino gaming sector continues to expand.
Second Quarter 2020 Highlights and Business Advancements
- Group revenue of €12.1m (C$18.9m[†]) vs €5.9m (C$9.2m) in Q2 of 2019 and €8.8m (C$13.7m) in Q1 of 2020, representing 107 per cent growth year on year and 38 per cent quarter on quarter, respectively
- Group Adjusted EBITDA of €1.8m (C$2.8m), representing significant growth from a loss of €0.3m (C$0.5m) in the prior year and gain of €0.7m (C$1.1m) in Q1 of 2020.
- Successful launch of multiple new operators including including MaxEnt, SuperBet and Candlebets
- Decreased dependence on German-facing operators with Schleswig-Holstein licenses; this revenue decreased to 28 per cent of total revenues vs 47 per cent in Q2 of 2019, demonstrating the underlying success of the Group’s diversification efforts and international growth initiatives.
- Successful receipt of the leading international ISO/IEC 27001 certification, underlining the supplier’s commitment to information security. The certification will enable ORYX Gaming to continue its global expansion into regulated markets and to provide its extensive content portfolio to even more operator partners.
Third Quarter 2020 trading update and full year 2020 Financial Guidance
The Group’s solid financial growth continued into the third quarter of 2020 with revenue expected to be in line with management expectation. As a result, the management is confident in its financial guidance for 2020 and updated its 2020 revenue forecast. Bragg forecasts revenue for 2020 to be in the range of €38m to €40m (C$59m to C$62m) (versus actual 2019 revenue of €26.6m (C$41.5m), an increase of up to 50 per cent versus 2019, with Adjusted EBITDA for 2020 in the range of €5.2m to €5.6m (C$ 8.1m – 8.7m) (versus actual 2019 Adjusted EBITDA of €1.0m (C$1.5 million)), which would represent a larger increase due to increased margins as the Company continues to scale, and exceptional performance in topline revenue resulting from a combination of existing customer growth and new customer contribution.
Board Appointment and Interim Changes
Bragg also announced today that, effective immediately, Adam Arviv has been appointed as a director of Bragg. Mr. Arviv will serve on the board of directors of the Company until the next annual meeting of shareholders. The Chief Executive Officer of the Company, Dominic Mansour, is taking a period of paid leave for personal reasons and Adam Arviv has been appointed as the Interim Chief Executive Officer of the Company.
“We’re pleased to welcome Adam to the Board and we thank him for taking on the role of Interim Chief Executive Officer,” said Mr. Pathak. “We’re confident his appointment to the Board will assist with the successful execution of Bragg’s existing strategic plan.”