Bragg Gaming Group has not experienced a negative performance impact from the global health crises the firm states after reporting strong growth for 2019 which saw a reduction in net losses.
Delivering the majority of revenue from online casino operations, the firm stipulated that the minimal effects felt is due to increased igaming traffic and minimal exposure to sports betting and its COVID-19 impacts.
Set against a comparative period that did not include the group’s Oryx Gaming entity, revenue for the year soared from €767,000 to €26.59m, gross profit came in at €12m and EBITDA finished up the period at €1.2m.
On a pro forma basis, if Oryx was owned by Bragg for the entirety of 2018, revenue growth of 41 per cent year-on-year would have been felt by the company. Net loss dropped to €11.9m (2018: €13.8m).
“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,” explained Dominic Mansour, CEO of Bragg. “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 series of global developments concerning Oryx Gaming, continued geographic expansion and diversification is praised as reducing a previous dependence on the company’s top five clients.
Providing an update on its future forecasts, Bragg anticipates revenue to be in the range of €35m to €38m, an increase of up to 43 per cent.
EBITDA of €5.5m would represent a larger increase due to continuing improvements in cost efficiency as the company continues to scale. The company’s revenue and EBITDA are currently ahead of its forecast with current trading over the last 30 days being double the same period last year.
The financial update comes after Bragg announced the completion of a strategic review of its online media division as well as entering an agreement regarding the sale of GiveMeSport.
Commencing a definitive share purchase agreement with SN&CK Media Limited, completion of the transaction is subject to the satisfaction of customary conditions of closing and is expected to be completed in early May, 2020.
Pursuant to the agreement, Bragg will receive a total consideration of up to £400,000 for the sale of its online media division. The price for the media division consists of an upfront cash payment of £50,000 upon completion, in addition to 10 per cent of the gross revenues from the media division for a period of 21 months following the completion.
“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,” noted Mansour. “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.”