After announcing strong growth for 2019, which saw a decrease in net losses, Bragg Gaming Group has not suffered a negative output effect from the company’s global health crises.
Delivering most revenue from online casino activities, the organisation has stipulated that the modest effects felt are attributed to increased igaming traffic and marginal exposure to sports betting and its COVID-19 impacts.
Compared to a comparable era that did not include the Oryx Gaming company of the business, sales for the year increased from €767,000 to €26.59 million, gross profit was €12 million and EBITDA was €1.2 million.
On a pro forma basis, if Bragg owned Oryx for the whole of 2018 , the company would have felt a revenue growth of 41 percent year-on-year. The net loss was down to EUR 11.9 million (2018: EUR 13.8 million).
Dominic Mansour, CEO of Bragg explained: “2019 was Bragg’s first full year of operations, and we’ve taken significant strides to establish ourselves as one of the fastest growing B2B providers in the gaming space. We experienced record revenue growth throughout 2019 and reached positive EBITDA in the fourth quarter.”
“The strong growth can be attributed to four key factors. The seamlessness of our integration process allowing us to swiftly and nimbly grow our operator base; the unique and local content, advanced, market leading features and player engagement tools through the Oryx Hub aggregator platform; the number of notable new client wins establishing us as a key partner in the space; and the growth of regulated revenues combined to put us in a market-leading position.”
Lauding a number of global innovations relating to Oryx Gaming, continued regional growth and diversification is celebrated as reducing a previous reliance on top five clients of the group.
Bragg anticipates revenues ranging from €35 m to €38 m, an increase of up to 43 percent, providing an update on its future forecasts.
The €5.5 m EBITDA will represent a bigger rise as the company continues to grow due to continued improvements in cost performance. The company’s revenue and EBITDA are currently ahead of its forecast with current trading doubling the same period last year over the last 30 days.
The financial update comes after Bragg has announced that it will complete a strategic review of its online media division and enter into a GiveMeSport sales agreement.
Beginning a binding share purchase agreement with SN&CK Media Limited, completion of the deal is subject to customary closing conditions being met and is expected to be completed by early May 2020.
Bragg will obtain a gross payment of up to £400,000 for selling its online media business according to that agreement. The price for the media division is an initial cash payment of £ 50,000 upon completion, in addition to 10 percent of the media division’s gross sales for a period of 21 months after completion.
Mansour noted: “We have recovered a major portion of our missed 2019 EBITDA target, which was negatively affected by revenue recognition, in the first quarter of 2020.
“We will recover the remainder by 2020 year-end. With the completion of the GMS sale, we are now cash-flow positive and able to focus 100 per cent of our resources and energy on enhancing the Oryx platform and expanding our presence worldwide.
“In 2020, our team is focused on leveraging existing relationships with complementary service providers, to offer enriched content and player account management system to operators and optimising the business to enter more regulated markets.”
Bragg Gaming Group Delivers 41 Per Cent Year-Over-Year Revenue Growth in 2019 https://t.co/WltWsmjA0Q
— Bragg Gaming (@Bragg_Gaming) May 14, 2020