TORONTO, June 30, 2020 – Bragg Gaming Group Inc. (TSXV: BRAG, OTC: BRGGF) released its financial results for the three-months ended March 31, 2020. Bragg is pleased to announce that the company continued its strong upward revenue and adjusted EBITDA growth trajectory over the quarter, achieving 44 per cent revenue growth year-over-year and 100 per cent Adjusted EBITDA growth year-over-year.
Continued focus on revenue diversification contributed to Bragg’s robust results, including the signing of new agreements with nine leading industry companies, including Gamesys Group, SkillOnNet, Leon, CasinoSecret and Hub88. The company is also in advanced discussions with an additional 20 potential new customers in licensed jurisdictions in Europe and Latin America.
“We’re very pleased that we’ve been able to build on the strong trajectory that we achieved in 2019,” said Dominic Mansour, CEO of Bragg. “We’ve continued to emphasize revenue diversification and have delivered strong growth across our operators, with the introduction of new features and functionality on our platforms. We have continually improved our content pipeline and have signed multiple new customers globally.”
While acknowledging the widespread adverse impact of the global COVID-19 pandemic on people and businesses globally, Bragg’s business has experienced a significant increase in revenue, as people chose to seek safe entertainment alternatives they can enjoy in their own homes.
“We’ve also focused on expanding our presence in the burgeoning U.S. gaming market,” Mr. Mansour noted. “We established a foothold there last year with our Kambi and Seneca partnership and are now evaluating opportunities to expand further.”
First Quarter 2020 Highlights and Business Advancements
- Group revenue of €8.8m (C$13.6 million†) vs €6.1m (C$9.4 million) in Q1 of 2019, representing 44 per cent growth year on year.
- Group Adjusted EBITDA of €0.8m (C$1.2 million), representing 100 per cent growth over Q1 of 2019.
- Successful launch of multiple new operators including Croatian-based Admiral Group, Betcris, SkillOnNet, and LottoLand.
- Decreased dependence on revenue from German-facing operators with Schleswig-Holstein licenses; this revenue decreased to 30 per cent of total revenues vs 46 per cent in Q1 of 2019, demonstrating the underlying success of the Group’s diversification efforts and international growth initiatives.
Second Quarter 2020 trading update and full year 2020 Financial Guidance
The Group’s financial outperformance continued into the second quarter of 2020 with revenue expected to be up by circa 30 per cent from the previous quarter. As a result, the management is confident with its financial guidance for 2020 which remains unchanged. Bragg forecasts revenue for 2020 to be in the range of €35m (C$53.9 million) to €38m (C$58.5 million) (versus actual 2019 revenue of €26.6 million (C$41.0 million)), an increase of up to 43 per cent versus 2019, with Adjusted EBITDA for 2020 in the range of €5.2m to €5.6m (C$ 8.0 million – 8.6 million) (versus actual 2019 Adjusted EBITDA of €1.2m (C$1.8 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.