Bragg Gaming Group expects revenue to reach the higher end of expectations in 2019, as the company posts a financial outlook for the coming year in which it praises a’ potential breakthrough in German regulations.’
By publishing a business update, including preliminary financial results for 2019 and a financial outlook for 2020, Bragg expects 2019 revenue to reach approximately € 26 million for 2019, representing pro forma growth of over 37% compared to 2018, if Oryx had been a member of the group over the period. For the first time, the € 1.4 m EBITDA of the group will be positive.
Management of Bragg Gaming Group attributes growth to:
- The core casino aggregator platform performing “extremely well” in sales processes.
- Successful notable new client wins, including Unibet, Betsson, Leo Vegas, BetClic and Mr Green.
- Stabilisation and growth of key German revenues following renewal of licenses in the middle of the year.
- Growth of regulated revenues, including in Columbia through its agreement with FullReto.co, as well as Romania, Sweden and Croatia.
In addition, the organisation anticipates sales ranging from € 35 million to € 38 million, a rise of 48%, with EBITDA expected to reach € 5.5 million, a greater increase attributable to continued improvements in cost efficiency as the business continues to grow.
Bragg also lauds recent news from the German market, which accounts for 40% of total revenue in the region, with “a positive outlook” being praised. This follows from all 16 autonomous states agreeing in principle to allow provisions on federal casinos and poker.
Ultimately, the company, which includes the GiveMeSport and GiveMeBet holdings, also offers an update to the strategic review of its online media division.
The third-party driven analysis concluded last month, in line with the original timetable plans, with Bragg announcing that it is currently in a phase of exclusivity with a chosen business selling partner. The company is planning to finalise this deal and close it by the end of the first quarter of 2020.
“I am very pleased with the immense progress we’ve made throughout 2019 and with our position looking into 2020,” Dominic Mansour, CEO of Bragg stated. ”We are keen to capitalise 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.”