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.”
Second Quarter 2020 Conference Call Information
Adam Arviv, Bragg’s Interim Chief Executive Officer will host the conference call along with Yaniv Spielberg, Bragg’s Chief Strategy Officer and Ronen Kannor, Bragg’s Chief Financial Officer. The conference call is scheduled to take place on September 1, 2020, at 8:30 a.m. Eastern Time.
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 replay 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 3386968.
About Bragg Gaming Group
Bragg Gaming Group Inc. (TSXV:BRAG, OTC:BRGGF) is an innovative B2B online gaming solution provider. Leveraging their industry-leading technology, it offers a turnkey solution, including an omni-channel retail, online and mobile iGaming platform, as well as advanced casino content aggregator, sportsbook, lottery, marketing and operational services. Renowned for its rapid and seamless integration, its content aggregator combines casino, slots, live dealer, lottery, virtual sports and instant-win game content from top tier gaming content providers, along with proprietary content, and is fully compliant with major regulated jurisdictions.
Capitalizing on its current portfolio and through targeted acquisitions, Bragg is focused on becoming a leader within the evolving global gaming industry. Learn more at https://www.bragg.games.
For Bragg Gaming Group, contact:
Yaniv Spielberg, CSO, Bragg Gaming Group Inc.
For media enquiries or interviews, please contact:
Lina Sennevall, Square in the Air
For investor inquiries, please contact:
Tim Dawson, Bragg Gaming Group Inc.
For US investor inquiries, please contact:
Laine Yonker, Edison Group
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements or “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking statements”). Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
All forward-looking statements reflect the Company’s beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company’s forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the impact of COVID-19 on the business of Bragg; the countercyclical growth of the business of Bragg; the regulatory regime governing the business of Bragg; the operations of the Company; the products and services of the Company; Bragg’s customers; acquisition opportunities; the growth of Bragg’s business, which may not be achieved or realized within the time frames stated or at all; and the anticipated size and/or revenue associated with the gaming market globally.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the following: risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the inability to access sufficient capital from internal and external sources; the inability to access sufficient capital on favorable terms; realization of growth estimates, income tax and regulatory matters; the ability of Bragg to implement its business strategies; competition; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices; the estimated size of the gaming market globally; changes in customer demand; disruptions to our technology network including computer systems and software; natural events such as severe weather, fires, floods and earthquakes; and risks related to health pandemics and the outbreak of communicable diseases, such as the current outbreak of COVID-19.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Any forward-looking statement made by the Company in this news release or the earnings call is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Company nor any of its management or directors undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Non-IFRS Financial Measures
Statements in this news release make reference to “Adjusted EBITDA”, which is a non-IFRS (as defined herein) financial measure that the Company believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company’s past financial performance and prospects for the future. The Company believes that “Adjusted EBITDA” provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of the Company’s core operating results. “Adjusted EBITDA” is a financial measure that does not have a standardized meaning under International Financial Reporting Standards (“IFRS“). As there is no standardized method of calculating “Adjusted EBITDA”, it may not be directly comparable with similarly titled measures used by other companies. The Company considers “Adjusted EBITDA” to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. “Adjusted EBITDA” is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
* Adjusted EBITDA – excludes income or expenses that relate to exceptional items and non-cash share-based charges
† For ease of reference, we present the financial results in CAD at today’s exchange rate of €1 = C$1.56