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 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.”
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Bragg Gaming Group
Bragg Gaming is Live in Brazil’s Regulated iGaming Market
Bragg’s proprietary and exclusive content and aggregation businesses are well-positioned to fuel double digit top- and bottom-line growth in 2025, targeting Brazil’s USD 1.4 billion iCasino market, which is expected to reach USD 3.7 billion by 2029.
Bragg Gaming Group a provider of iGaming content and platform technology solutions to the iGaming industry is proud to confirm that it is live as a supplier to licensed operators in the Brazilian market, following the introduction of regulated online casino operations in the territory on January 1, 2025.
The newly regulated Brazilian online casino market is projected to be worth USD 1.4 billion in 2025, and is expected to reach USD 3.7 billion by 2029 according to H2 Gambling Capital.
As a specialist regulated iGaming market supplier, Bragg believes it is well positioned to capitalize on the launch and projected growth of the Brazilian market and that revenue from the Brazilian market could represent up to 10% of the Company’s total revenue in 2025.
Bragg is currently live with approximately one-third of licensed iCasino operators in Brazil, with prominent partners including Superbet, KTO, Betano, Novibet, Sportingbet and Betboo. The Company expects integrations to reach over half of licensed operators in Brazil by the end of Q2 2025.
Bragg’s current content offerings include key proprietary content titles such as Egyptian Magic by Atomic Slot Lab and Crazy Diamonds by Indigo Magic. Accelerating proprietary content growth is a strategic priority for the Company, as fully-owned IP typically delivers higher gross profit margins, driving bottom-line growth and supporting a balanced, margin-accretive product mix.
Complementing its proprietary content offering, the Company has also introduced exclusive online casino games in the jurisdiction from its carefully selected “Powered by Bragg” partners including Bluberi, Sega Sammy Creation and King Show Games. Additionally, the Company intends to develop strategic relationships with local studio partners which will enhance Bragg’s ability to deliver content tailored to Brazilian players.
Bragg’s content strategy in Brazil, key to its top-line growth plans, also includes online casino content aggregation through its Bragg HUB delivery platform. Bragg HUB provides a comprehensive iGaming content service, offering over 10,000 online casino game titles including from leading content providers in Brazil. This offering is enhanced by the Fuze player engagement platform, featuring tools for acquisition, cross-selling, conversion, and retention, including bonuses, free rounds, jackpots, and an AI-powered game recommendation engine.
The Company serves Brazilian operators from its Bragg São Paulo office, led by LatAm Regional Director Sara Mosallaee and Senior Account Manager Amanda Alexandrini, providing fully localized support.
Matevz Mazij, Chief Executive Officer at Bragg Gaming Group commented: “We’re delighted to expand into the newly regulated market in Brazil, and to be there for our customers on the first day of launch with our in-demand content portfolio and player engagement platform.
“At Bragg we have extensive experience of delivering highly localized iGaming content and technology solutions in regulated markets, and we now expect the Brazilian market to become a key territory for us and a significant driver of our growth in the wider LatAm region.
“This latest regulated market launch sets us on a strong trajectory for 2025, helping us deliver our strategic objectives of increased revenue through proprietary, exclusive and aggregated online casino content, while at the same time adding geographical diversity to our revenue streams, promoting stable, long-term growth for the Company.”
Neill Whyte, Chief Commercial Officer at Bragg Gaming Group added: “We’ve been working hard to make sure we have the right content, the right people and the right structures in place to support our Brazilian operator partners from day 1 of market launch, and I’m proud to say we are now live in this exciting market which offers so much potential.
“We’re already partnered or are in talks with approximately half of the Brazilian iGaming operator market, and that leaves plenty of room for growth. We will be busy in the coming months showcasing our games and technology solutions with both existing customers and potential new partners as we continue to grow our presence in Brazil and across the LatAm region.”
The post Bragg Gaming is Live in Brazil’s Regulated iGaming Market appeared first on Gaming and Gambling Industry in the Americas.
Bragg
Bragg Gaming Group Announces Record Third Quarter 2024 Revenue of Eur 26.2 Million (USD 29.3 Million)
Bragg Gaming Group, a global B2B content-driven iGaming technology provider, reported record revenue for the third quarter of 2024.
Summary of 3Q24 Financial and Operational Highlights
Euros (millions)(1) | 3Q24 | 3Q23 | Change |
Revenue | € 26.2 | € 22.6 | 15.9 % |
Gross profit | € 14.0 | € 11.9 | 18.1 % |
Gross profit margin | 53.5 % | 52.5 % | 99 bps |
Adjusted EBITDA(2) | € 4.1 | € 3.8 | 7.1 % |
Adjusted EBITDA margin | 15.6 % | 16.9 % | (129) bps |
Operating Income (Loss) | € (0.4) | € (2.1) | (81.0) % |
(1) Bragg’s reporting currency is Euros. The exchange rate provided is EUR 1.00 = USD 1.12. Due to fluctuating currency exchange rates, this reference rate is provided for convenience only.
(2) “Adjusted EBITDA” is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.
Chief Executive Officer Commentary
Matevž Mazij, Chief Executive Officer for Bragg, commented, “The third quarter marked another period of strong growth and record results for Bragg. Revenue grew 16% year-over-year, gross profit increased 18%, and Adjusted EBITDA rose 7%. In the U.S., strong third quarter revenue gains from content distribution helped drive a 40% global increase in proprietary online content revenue year-over-year.
“Additionally, we announced today that the Board of Directors has unanimously decided to conclude its review of strategic alternatives for Bragg. After extensive evaluation and deliberation, the Board determined that the ongoing execution of the Company’s strategic plan is the best way to maximize value for shareholders at this time.
“Since stepping in as Chairman 16 months ago and then as CEO 14 months ago, we’ve transformed our executive team, restructured commercial operations, and sharpened our sales strategy with a targeted, jurisdictional approach. These decisive actions position us to drive growth and capture market opportunities with greater precision and impact. Under new leadership, we’ve built a strong pipeline of tier 1 opportunities across key markets and key products, positioning Bragg for accelerated top- and bottom-line growth.
“With the strategic review process now complete, Bragg is now fully focused on commercialization and unlocking profitable growth, without the need for significant new investment in product development. Our decade-long investments in technology and talent, combined with a robust leadership team, have built a scalable platform that uniquely positions us for aggressive growth in 2025 and beyond. With significant operating leverage now within reach, we’re poised for an exciting, high-growth, and profitable future.”
Third Quarter 2024 and Recent Business Highlights
- Launched its newest games and Remote Gaming Server (RGS) technology with Caesars Digital in Pennsylvania and Ontario. The launch marked the expansion of Bragg’s existing partnership with Caesars Digital, following earlier launches in New Jersey and Michigan respectively, doubling the number of states/provinces in which Bragg content is offered on Caesars Palace Online Casino and Caesars Sportsbook & Casino.
- Launched its newest games and RGS technology with FanDuel in New Jersey, adding to its existing distribution with the leading North American operator in Michigan, Pennsylvania, Connecticut and Ontario
- Post-quarter end, the Company additionally launched its newest games and RGS technology with bet365 in New Jersey, following on from its second quarter launch in Pennsylvania, and an earlier launch in Ontario with the major global iGaming operator
- Launched HardRockCasino.nl in the Dutch market, supplying its cutting-edge player account management (PAM) software to the brand. The agreement is Bragg’s 6th PAM customer in the Netherlands, reinforcing Bragg’s status as the leading technology and content supplier in the Dutch market
- Launched the Kambi sportsbook on 711.nl, adding an additional revenue-generating product stream to a key PAM customer in the Netherlands
- Management is pleased to announce the appointment of Robbie Bressler to CFO of Bragg, effective immediately. Robbie had been serving as Bragg’s interim CFO since July 1, 2024.
Additional September 30, 2024 Key Financial Metrics
- For the nine-month period ended September 30, 2024, Cash flow generated from operations was EUR 8.4 million (USD 9.4 million), compared to EUR 6.2 million (USD 6.9 million) for the nine-month period ended September 30, 2023.
- Cash and cash equivalents as of September 30, 2024 was EUR 11.6 million (USD 13.0 million) and net working capital, excluding deferred consideration, loans payable, and convertible debt, was EUR 11.3 million (USD 12.7 million)
Strategic Alternatives Process Concluded
The Bragg Board announced the strategic alternatives process in March 2024 with the formation of a Special Committee, comprised solely of independent members of the Board. The Committee, together with its advisors Oakvale Capital LLP and Blake, Cassels & Graydon LLP, evaluated a wide range of strategic alternatives for maximizing shareholder value including a potential sale or merger of the Company. Bragg solicited interest from a significant number of potential counterparties and received multiple non-binding proposals.
After careful consideration, the Board, on recommendation from the special committee, unanimously determined that none of the proposals received reflect the Company’s intrinsic value or current and projected financial performance, and therefore elected to conclude its review and disband the Special Committee.
Don Robertson, independent Board member and Chair of the Special Committee, said, “After a comprehensive and exhaustive process, the Committee recommended, and the Board unanimously agreed, that continuing to execute Bragg’s strategic plan as an independent public company is the best approach for maximizing shareholder value. Although the process has now concluded, Bragg’s Board will continue to be open to and consider all opportunities for enhancing shareholder value.”
“Over the past year, our financial performance, cashflow generation and revenue outlook have significantly improved. We remain extremely confident about our business plan, operating strategy, and financial prospects” said Matevž Mazij, Chairman and CEO of Bragg.
Reiterates Full Year 2024 Guidance and 2025 Outlook
Bragg reiterates its 2024 full year revenue guidance range of EUR 102.0-109.0 million (USD 114.2-122.1 million) and its full year Adjusted EBITDA range of EUR 15.2-18.5 million (USD 17.0-20.7 million), noting that the Company is currently tracking to the lower end of guidance.
Bragg is actively advancing a robust pipeline of opportunities that is anticipated to drive strong momentum as we enter 2025. The outlook for 2025 remains positive, with expectations of sustained double-digit top line growth, expanding bottom line margins, and increased operational leverage, further strengthening Bragg’s position in the market. The preceding guidance and outlook constitute forward-looking information within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks.
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