Bragg Gaming Group
BRAGG GAMING GROUP 2021 REPORTS RECORD FOURTH QUARTER RESULTS AS REVENUE RISES 14.4%
Bragg Gaming Group, a global B2B gaming technology and content provider, today reported record financial results for the fourth quarter and full year ended December 31, 2021. The Company also provided an update on its strategic growth initiatives and reiterated its full year 2022 revenue and Adjusted EBITDA guidance.
Summary of Q4-21 and FY-21 Financial and Operational Highlights
|
Q4-21  |
Q4-20 |
Change |
|
|
Revenue |
€15.8 |
€13.8 |
14.4% |
|
Gross profit |
€8.0 |
€6.0 |
33.3% |
|
Gross profit margin |
51.0% |
43.8% |
720bps |
|
Adjusted EBITDA |
€1.5 |
€1.3 |
22.2% |
|
Adjusted EBITDA margin |
9.8% |
9.1% |
70bps |
|
Wagering revenue |
€3.1B |
€3.4B |
-8.4% |
|
Euros |
FY-21 |
FY-20 |
Change |
|
Revenue |
€ 58.3 |
€ 46.4 |
25.6% |
|
Adjusted EBITDA |
€7.2 |
€5.5 |
29.8% |
|
Wagering revenue |
€14.3B |
€11.8B |
21.1% |
Management Commentary
“The 2021 fourth quarter concluded an active and productive year for Bragg as continued execution on our key strategic initiatives drove significant operational accomplishments and strong financial results,” said Yaniv Spielberg, Chief Strategy Officer for Bragg Gaming. “In the fourth quarter we went live with our iGaming offering in the newly regulated Netherlands market and also went live in the U.K, the world’s largest iGaming market. Since the beginning of 2021, we have introduced player-popular content in six regulated European markets, increasing our total addressable market (“TAM”) by more than $10 billion to approximately USD$13.5 billion. We have also made significant progress towards our entry into additional new markets and expect to go live with our games in the U.S. and Canada later this year. Furthermore, we have also made substantial progress on our initiative to offer more new high-performing propriety and exclusive third-party online content through our June 2021 acquisition of Wild Streak, the recent introduction of our first new internally developed games and new exclusive content licensing agreements with leading game developers. Bragg’s continued progress with its new market and content monetization initiatives, combined with 42% growth in new customers in 2021, drove our strong fourth quarter and full year financial results.
“Fourth quarter revenue of EUR €15.8 million (USD $17.5 million) and Adjusted EBITDA of EUR €1.5 million (USD $1.7 million) surpassed the preliminary results we provided last month and were both fourth quarter records. As a result, 2021 full year revenue and Adjusted EBITDA rose 26% and 30%, respectively to records of EUR €58.3 million (USD $64.7 million) and EUR €7.2 million (USD $8.0 million). In addition, the growing mix of higher gross margin in-house content and platform revenue contributed to a record quarterly gross profit margin of 51% in the fourth quarter, reflecting a 720 basis point year-over-year improvement. Our strong margin performance in the quarter highlights the significant progress we’ve made against our goal to grow gross profit margin to approximately 60% by 2024.
“Our operating momentum has continued in the early months of 2022. We also continue to make progress on closing our acquisition of Spin Games as Bragg has completed all of its regulatory requirements. We are now awaiting final review by the sole remaining regulatory body which is expected to be complete in the next few months. Importantly, we have made substantial progress on the integration of the Spin Games technology platform with our ORYX platform and have already submitted the integrations for certification by various approved U.S. gaming laboratories. As such, once we receive the remaining required regulatory approval to complete this acquisition, we expect to be able to introduce our iGaming content to players in a number of U.S. states very quickly. Importantly, the pace of U.S. deployments will benefit from Spin Games’ existing relationships with more than 30 U.S. iGaming operators.”
Mr. Spielberg concluded, “Our planned entry into the U.S. and Canada as well as additional regulated European markets this year has Bragg on track to grow our year-end 2022 TAM to more than USD$21 billion. The strong performance we have achieved in a number of our recently entered markets as well as our existing markets in the early months of 2022, and the ongoing roll-out of our new proprietary games, amplifies our confidence for continued operating momentum. As a result, we are reiterating our outlook for 2022 full year revenue of EUR €68-72 million (USD $76-80 million) and Adjusted EBITDA of EUR €9.5-10.5 million (USD $10.5-11.7 million). The midpoints of these ranges represent growth of 20% and 39%, respectively, over reported full year 2021 revenue and Adjusted EBITDA. We believe the ongoing execution of our operating priorities favourably positions Bragg to both further accelerate this growth in 2023 and create new near- and long-term shareholder value.”
Fourth Quarter 2021 Financial Results and other Key Metrics Highlights
- Revenue increased by 14.4% to EUR €15.8 million (USD $17.5 million) in Q4 2021 compared to EUR €13.8 million (USD $15.3 million) in Q4 2020.
- Wagering revenue generated by customers decreased 8.8% to EUR €3.1 billion (USD $3.4 billion) compared to EUR €3.4 billion (USD $3.8 billion) in Q4 2020 as a result of changes in the product mix, towards PAM, managed services and proprietary content which drove improved gross profit and Adjusted EBITDA.
- Gross profit increased by 33.3% to EUR €8.0 million (USD $8.9 million) from EUR €6.0 million (USD $6.7 million) in Q4 2020, reflecting higher revenue and a 720 basis point margin improvement to 51.0%.
- 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 €1.6 million (USD $1.8 million), a decline from a net loss of EUR €5.3 million (USD $5.9 million) in Q4 2020, primarily due to higher gross profit and a reduction in costs related to deferred consideration payable, partially offset by the incremental increase in employee costs and professional fees as a result of the Nasdaq listing.
- Adjusted EBITDA was EUR €1.5 million (USD $1.7 million), an increase of 22.2% compared to EUR €1.3 million (USD $1.4 million) in Q4 2020. Adjusted EBITDA margin increased by 70 basis points to 9.8%.
- Cash and cash equivalents as of December 31, 2021 was EUR €16.0 million (USD $17.8 million).
2021 Full Year Financial Results and other Key Metrics Highlights
- Revenue increased by 25.6% to EUR €58.3 million (USD $64.7 million) for 2021 compared to EUR €46.4 million (USD $51.5 million) in 2020.
- Wagering revenue generated by customers increased 21.1% to EUR €14.3 billion (USD $15.9 billion) compared to EUR €11.8billion (USD $13.1 billion) in 2020.
- The number of unique players using Bragg games via its Oryx Hub distribution platform and content increased by 11.2% to 6.5 million, from 5.9 million in 2020.
- Gross profit increased by 40.3% to EUR €28.3million (USD $31.4 million) from EUR €20.2million (USD $22.4 million) in 2020, reflecting a 510 basis point margin improvement to 48.6%.
- Net loss for the period was EUR €7.5 million (USD $8.3 million), an improvement from the net loss of EUR €14.6 million (USD $16.2 million) in 2020.
- Adjusted EBITDA was EUR €7.2 million (USD $8.0 million), an increase of 29.8% compared to EUR €5.5 million (USD $6.1 million) in 2020. Adjusted EBITDA margin increased by 40 basis points to 12.3%.
Full Year 2022 Revenue and Adjusted EBITDA Guidance
Bragg today reiterated its outlook for 2022 full year expected revenue of EUR €68-72 million (USD $76-80 million) and Adjusted EBITDA of EUR €9.5-10.5 million (USD $10.5-11.7 million). The midpoints of the 2022 revenue and Adjusted EBITDA guidance ranges represent growth of 20% and 39%, respectively, over the reported full year 2021 revenue and Adjusted EBITDA.
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Bragg Gaming Group
Bragg Gaming Announces Preliminary Unaudited Results for the Year Ended December 31, 2024 and 2025 Strategic Initiatives and Guidance
Bragg Gaming Group announced its preliminary unaudited results for the year ended December 31, 2024 based on information currently available to management and certain strategic initiatives and issued financial guidance for 2025, highlighting anticipated double-digit growth in Revenue and Adjusted EBITDA driven by a strategic focus on proprietary and exclusive content.
Anticipated Full Year 2024 Results Highlights
The Company expects the financial results for full year 2024 to include the following highlights: Revenue not less than EUR 102 million, an increase of 9% from EUR 93.5 million for 2023, Adjusted EBITDA of not less than EUR 15.4 million, an increase of 1% from EUR 15.2 million for 2023.
Anticipated Financial Highlights for 2025
Revenue Guidance: Revenue for the year ended December 31, 2025, is expected to reach between EUR 117.5 million and EUR 123.0 million, representing double digit growth compared to the Company’s anticipated 2024 revenue.
Adjusted EBITDA Guidance: Adjusted EBITDA is forecasted to range between EUR 19.0 million and EUR 21.5 million, supported by a shift toward higher-margin product offerings.
Strategic Business Drivers
The Company is expecting to realize its anticipated 2025 results in part, as a result of certain strategic initiatives, including:
• Shift in Revenue Concentration: The percentage of revenue from the Company’s proprietary and exclusive content business is expected to increase providing a more margin-accretive mix and improving profitability with reduced reliance on third party content revenue by year end.
• Growth in Key Markets: Content-focused products, including proprietary, exclusive and aggregated content are projected to drive significant revenue growth in North America and Brazil, which are expected to contribute up to 10% and 15% of revenue, respectively by year-end.
• Brazil’s Growth Potential: The Company believes that its proprietary and exclusive content and aggregation businesses are strategically positioned to capture a significant share of Brazil’s $1.5 billion iGaming market, projected to more than double to over $3.3 billion by 2029, according to H2 Gambling Capital.
• US Market Penetration: The Company believes that it is strategically positioned for significant growth in the US market by leveraging its proprietary and exclusive content portfolio. Through integration with top-tier operators such as DraftKings, FanDuel, Rush Street, Caesars and BetMGM, and licenses in all key iGaming states, the Company’s content is accessible to over 90% of the US iGaming market, valued at over $9.5 billion, according to H2 Gambling Capital. Under the leadership of Neill Whyte, Chief Commercial Officer, and Garrick Morris, SVP (Commercial, US & Canada), veterans of the iGaming industry with multi-decade successful market penetration experience under their belt, the Company has strong leadership to garner enhanced market share. It is expected that proprietary and exclusive content growth in the US will be further driven by the recently announced technology and content partnership with Caesars Entertainment Inc. This partnership, which leverages the Company’s cutting-edge technology and innovative development strengthens the Company’s profile in a competitive and dynamic market.
• Stronger Penetration in Major European Markets: Bragg aims to expand content distribution in key Western European markets, including Italy, UK, Spain, and Sweden, by leveraging existing integrations with top operators and implementing targeted sales strategies.
• Expand Exclusive Partnerships: The Company plans to increase its roster of partner studios to enhance the release cadence of titles in North America. Additionally, Bragg aims to grow exclusive content distribution in Central European markets, including the Czech Republic and Germany, through strategic partnerships with studios such as Gamomat and King Show Games.
• Stability in PAM Business: The Company’s PAM business is expected to remain flat year-over-year, an overall positive, despite the anticipated contraction of the Netherlands market in 2025 due to regulatory changes made in the fourth quarter of 2024.
• Enhanced Technology Profile: The Company continues to innovate with technologies such as FUZE, which provides bonuses, free rounds, tournaments, jackpots, recommendation engine and other engagement and promotional tools seamlessly across all iGaming, Sportbetting and iLottery products, requiring no additional integration. These advanced features enhance player experience and contribute to the growth of the Company’s product portfolio revenue.
• Data and AI Enhancements: By leveraging extensive gaming data, the Company generates actionable insights and employs AI-driven optimizations to elevate player experiences and enhance operator profitability, thereby accelerating profitable growth in proprietary and exclusive content verticals. Opportunities to leverage AI to reduce costs and enhance product margins are also being actively explored.
• Pipeline Opportunities: A robust pipeline of opportunities is under development, which, if realized, could further enhance 2025 performance but are not yet reflected in the current guidance.
• Stock Appreciation Rights Plan: Bragg has also introduced a new Stock Appreciation Rights (SAR) plan for its executive management team, further aligning management interests with those of shareholders. The SAR plan has been implemented under the Company’s Amended and Restated Omnibus Equity Incentive Plan and pays out only if the Company’s share price increases over a three-year period, with a full payout contingent on achieving a four-fold increase from a base price of $5 CAD. This structure ensures that executive compensation is firmly tied to delivering significant shareholder value. Additionally, the plan includes accelerated vesting provisions in the event of a change of control, preserving alignment with shareholder interests in all value-creation scenarios. SAR award payouts may be settled through the payment of cash, the issuance of shares, or through a combination of both, subject to the discretion of the Company’s Board and availability of shares under the Company’s equity incentive plan at the time.
“I am pleased with where we believe 2024 results will land and very excited about the strong growth trajectory outlined in our 2025 guidance. Our strategic investments in proprietary and exclusive content as well as various Data, Player journey and AI enhanced engagement features, are expected to drive our growth in 2025. By focusing on margin-accretive products, we are well-positioned to boost both revenue and profitability while pursuing opportunities in key markets such as Brazil and the United States. Our PAM product remains a top-tier performer, and while our 2025 growth will largely come from the content side of the business, we have exciting prospects to expand our PAM offering. Additionally, I’m particularly proud of the strong executive team that we have assembled at Bragg this past year. The recently announced Caesars deal highlights their impressive capabilities,” said Matevž Mazij, CEO of Bragg.
The post Bragg Gaming Announces Preliminary Unaudited Results for the Year Ended December 31, 2024 and 2025 Strategic Initiatives and Guidance appeared first on Gaming and Gambling Industry in the Americas.
Reflex Gaming, a leading supplier of omnichannel gambling games, has announced a deal with Bragg Gaming Group to distribute its products globally via the technology and solutions provider’s remote gaming server (RGS).
The agreement will see a collection of Reflex Gaming titles made available to Bragg’s extensive operator network in regulated markets worldwide, bolstering the content developer’s position in key European jurisdictions such as the Netherlands and UK, as well as in the US.
The multi-game deal will also include the distribution of Reflex Gaming’s future suite of exclusive titles tailored to align with consumer preferences in specific markets, enabling Bragg to deliver bespoke, player-centric gaming experiences to its partners.
With over 20 years of experience in land-based gambling, Reflex Gaming announced its entry into the iGaming sector in 2020. It has since reinforced its reputation as a prominent game provider with a portfolio of compelling products that leverage numerous player engagement tools to drive acquisition, retention, and revenue on behalf of operators.
The partnership highlights Reflex Gaming’s commitment to extending its content provision across the globe and emphasises the targeted strategic expansion of its iGaming offering.
Mat Ingram, Chief Product Officer at Reflex Gaming, said: “Bragg services more than 30 regulated jurisdictions worldwide, with this agreement facilitating our expansion in key markets on our home continent and in target regions such as the US.
“Reflex Gaming’s product team continues to push boundaries when it comes to game development, and we have no doubt our diverse portfolio will elevate the offering of Bragg’s operator network.”
Niklas Mravlje, Director of Product Marketing at Bragg Gaming Group, said: “Reflex Gaming has a strong existing presence across major European markets thanks to its land-based heritage and more recent iGaming venture.
“Bragg’s industry expertise will help fuel the supplier’s expansion and open the doors to the highly desired USA market for their games, as well as solidifying our own position as a leading distributor of best-in-class proprietary content.”
The post Reflex Gaming Announces Content Distribution Partnership with Bragg Gaming Group appeared first on Gaming and Gambling Industry in the Americas.
Bragg Gaming Group
Bragg Gaming Announces Content and Technology Partnership with Caesars Entertainment
Bragg Gaming Group has announced a technology platform and exclusive games development partnership with Caesars Entertainment for the US and Canada markets.
The new partnership elevates Bragg’s relationship with Caesars from a content supplier to a technology partner, showcasing the value of Bragg’s advanced iGaming technology and content development expertise.
This partnership is projected to help drive double-digit growth in both Bragg’s revenue and profitability in 2025, particularly in North America—a key strategic focus for Bragg’s expansion efforts in 2025. Additionally, the agreement will accelerate growth in Bragg’s exclusive content revenue, enhancing a balanced and margin-accretive product mix.
The enhanced partnership includes a strategic technology licensing framework for Caesars to lease Bragg’s Remote Gaming Server (RGS), as well as further options to license the Bragg HUB product delivery and casino game aggregation platform, and Bragg’s Fuze player engagement platform, offering experience-enhancing features such as bonuses, free rounds, jackpots and AI-powered game recommendation engines.
Bragg, in collaboration with Caesars’ newly formed in-house games studio team, will initially develop a number of online casino games for Caesars’ digital platforms. The partnership will also create a delivery platform for Caesars’ in-house games studio to build and deploy its own proprietary, custom game titles that incorporate its unique intellectual property, catering to player preferences across Caesars Palace Online Casino, Horseshoe Online Casino, and Caesars Sportsbook & Casino.
As a longstanding partner of Caesars, Bragg has previously developed two highly successful exclusive titles – Lady Luck Casino Egyptian Magic and Boardwalk Slots Bankers & Cash – for Caesars Palace Online Casino and regularly supplies new online slots and casino games to Caesars’ digital platforms in New Jersey, Michigan, and Pennsylvania in the US, as well as in Ontario in Canada.
Neill Whyte, Chief Commercial Officer at Bragg Gaming Group, said: “We’re thrilled to be kicking off this exciting new content and technology project with Caesars for its online casino platforms. We have decades of expertise and know-how, as well as the full technology suite to build, launch and operate the highest quality online casino games, and we look forward to expanding our strategic partnership with the Caesars team to enhance the player experience through innovative and exclusive gaming content creation. Bragg and Caesars already have a strong history together, and this expanded partnership is a testament to our commitment to continue building and further strengthening this successful relationship.”
Matt Sunderland, Senior Vice President & Chief iGaming Officer at Caesars Digital, said: “Bragg’s technological expertise has consistently exceeded our expectations throughout our partnership. This expansion marks an important step in our strategic growth plan to develop our own proprietary digital slots and table games content and to offer something truly exclusive for our players. We’re excited about the potential that this moment provides us, and we have our sights set on building exclusive online casino games through our newly formed in-house game studios team that will set us apart in the industry.”
The post Bragg Gaming Announces Content and Technology Partnership with Caesars Entertainment appeared first on Gaming and Gambling Industry in the Americas.
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