Bragg Gaming Group Provides Business Update
TORONTO, Feb. 14, 2020 (GLOBE NEWSWIRE) — Bragg Gaming Group Inc. (TSXV: BRAG, OTC: BRGGF) (“Group”), the rapid growth B2B gaming technology platform, aggregator and services provider, today provided a business update, preliminary 2019 financial results, and a 2020 financial outlook.
Preliminary 2019 Financial Performance
The Group expects revenue to be approximately EUR 26m for 2019, coming in at the high end of market expectations and representing growth of over 37% as compared to 2018 on a pro forma basis, if Oryx had been a part of the Group for all of 2018. The Group’s Clean EBITDA1 of EUR 1.4m, will be positive for the first time.Management attributes the growth to:The core casino aggregator platform performing extremely well in sales processes facilitated by rapid integrations;Successful notable new client wins, including Unibet, Betsson, Leo Vegas, BetClic & Mr Green, among others;Stabilisation and growth of key German revenues following renewal of licenses in the middle of the year; andExceptional growth of regulated revenues, including Columbia through its agreement with FullReto.co, Romania, Sweden and Croatia. The Group will be changing its reporting currency to EUR, as opposed to CAD, effective 1 Jan 2020. EUR is the main revenue generator and cost base of the Group and thus a more representative indicator of its performance and current standing.
2020 Financial Outlook
The Group forecasts revenue for 2020 to be in the range of EUR 35-38m (2019: EUR 26m), an increase of up to 48% on 2019 with Clean EBITDA for 2020 of EUR 5.5m (2019: EUR 1.4m), a larger increase due to continuing improvements in cost efficiency as the Group continues to scale. Group revenue and EBITDA are ahead of forecast for January 2020.Recent news from the German market, which represents around 40% of Group revenue, shows a positive outlook for a potential breakthrough in German regulations. All 16 autonomous Länder (States) have agreed in principle to allow federal casino and poker provisions.The Group has not included any positive impact of these regulations into financial forecasts at this time whilst it awaits further developments. However, management believes the risk against German revenues to be materially reduced and hence a likely positive impact on overall business.Business AdvancementsContingent Consideration and Financing
As part of the 2018 Oryx acquisition by the Group, the Group is accountable for earn-out related, contingent consideration, due to Oryx’s vendor, KAVO Holdings. Management is engaged in amicable discussions with the vendor to restructure the original terms, potentially accelerating the entire earn out due or adapting the current payment terms with both sides committed to finding a long-term solution that will support and accelerate Oryx’s growth while sustaining shareholder value.To that end, the Group is working with a third-party investment bank and financial partners to support further evaluation of its options.Dominic Mansour, CEO of Bragg, stated, “We have fostered a great relationship with the Oryx team throughout 2019 and will continue to work together to ensure the Group continues along a path towards long-term growth. We are exceptionally well positioned in a lucrative industry and we believe that the current valuation does not reflect the potential of the Group and are together working on finding a solution.”GMS Strategic Review
In August 2019, the Group announced a strategic review of their Online Media Division, including their GiveMeSport and GiveMeBet assets. The Group concluded the third-party led review in January 2020, in line with their initial timeline, and is pleased to announce that it is currently in an exclusivity period with a preferred partner for the sale of the business. The Group aims to finalize and close this transaction by the end of 1Q20 and will provide further updates to the market when possible.“I am very pleased with the immense progress we’ve made throughout 2019 and with our position looking into 2020,” stated Dominic Mansour, CEO of Bragg. ”We are keen to capitalize on the strong growth in the gaming industry and are focused on continually improving our B2B operations by building new relationships with large operators across Europe, Latin America and the United States, as well as partnering with notable industry players who complement our offering.”“We have an exciting 1Q20 ahead with several important announcements in the pipeline, and I look forward to updating the investment community as we continue to execute on our strategy.”About Bragg Gaming Group
Bragg Gaming Group Inc. (TSXV:BRAG, OTC:BRGGF) is a next generation gaming group with cutting-edge technology, leading brands and world-class management expertise, developing into a global gaming force. Formed by a team of gaming industry experts, Bragg’s main portfolio is ORYX Gaming, an innovative B2B gaming technology platform and casino content aggregator.Through this brand and 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:
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