Bragg Gaming Group Inc (CVE:BRAG) (OTCMKTS:BRGGF) has posted full-year 2019 results that saw its revenue jump 41% year-over-year driven by its business-to-business (B2B) platform, Oryx Hub aggregator and significant new client wins.
The Toronto-based gaming group said that 2019 total revenue was €26.6 million (C$40.57 million) and gross profit €12.0 million (C$18.30 million). The numbers were stated on a pro forma basis as if Oryx was owned by Bragg for the entirety of the year.
In a statement accompanying the numbers, Bragg Gaming CEO Dominic Mansour said: “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, 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," he added.
Bragg continued its geographic expansion and diversification of Oryx's revenue in the year as the group’s dependence on its top five clients decreased with only 46% of total revenue derived from its top five clients as of December 2019, down from 73% as of December 2018.
In addition, Oryx partnered with operators across new territories, and entered lucrative regulated markets including Colombia in South America and the US.
It formed a strategic partnership with Kambi, a provider of premium sports betting services with an extensive client base in the US.
Along with Kambi's sports betting services, Bragg provides its casino services and unique player account management (PAM) system to operators worldwide. The first joint deal has been signed with New York's Seneca Gaming Corporation (SGC), which operates all the Seneca Nation's Class III gaming operations in western New York. The Bragg and Kambi teams will provide SGC with their services and products across SGC's three New York casinos, said the company.
Highlights in 2019 included:
- Bragg’s wholly-owned subsidiary Oryx Gaming saw accelerated growth and increased new operators being integrated, including Unibet, Betsson, Fullreto.co, Leo Vegas, Fav Bet and Bet Clic
- Completed several platform enhancements to Oryx's core platform, including Oryx Hub, a new data analytics platform, and a new player engagement platform.
- Completing a strategic review of the company's online media division, including GiveMeSport and GiveMeBet assets
- In May 2020, the company announced a definitive agreement for Sn&ck Media Limited to acquire GiveMeSport. After inking the definitive agreement, Bragg will receive up to €400,000 (C$609,066) for the media division assets
“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,” Mansour added.
“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% of our resources and energy on enhancing the Oryx platform. 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.”
The company forecasted revenue for 2020 to range between €35 million (C$53.38 million) to €38 million (C$57.95 million), which is a 43% jump in revenue from 2019.
Bragg Gaming said it had not experienced any negative impact from the coronavirus pandemic. “Online businesses such as casinos have seen increased traffic, as people choose to seek safe entertainment alternatives they can enjoy in their own homes,” said the company in a statement.
Bragg derives the majority of its revenue from online casino operators, and has minimal exposure to sports betting, which has been impacted by the lack of professional sport.
“With the future of the global economic markets still uncertain, Bragg has chosen not to revise its 2020 forecasts,” said the company.
Contact the author Uttara Choudhury at [email protected]
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