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Bragg Achieves Exceptional 72 Per Cent Revenue Growth in Q3

TORONTO, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Bragg Gaming Group Inc. (TSXV: BRAG, OTC: BRGGF) (“Bragg”, the “Group” or the “Company”) today released its financial results for the three months ended September 30, 2020. Bragg continued its strong upward revenue1 and Adjusted EBITDA2 growth trajectory over the quarter, achieving 72 per cent revenue growth year-over-year and generating Adjusted EBITDA of €1.8m (C$2.8m3) in the quarter, as compared to a €0.2m (C$0.3m) for the same period in the prior year. Adjusted EBITDA margins significantly increased to 15.7 per cent, up from 2.6 per cent in Q3-2019, a result of improved cost control and higher scale.

“We’ve made extraordinary progress in 2020 and are very pleased with the substantial revenue and EBITDA growth that we’ve delivered,” said Adam Arviv, Interim Chief Executive Officer of Bragg. “We continue to expand globally, enhancing our content portfolio and technology offering, and securing new customers across key geographies.”

Bragg continues to focus on expanding its global footprint, demonstrated by the onboarding of 14 new customers in the quarter. The Company is also in advanced discussions with new customers across multiple licensed jurisdictions in Europe and Latin America. In addition, Oryx continued to strengthen their unique games portfolio with the launch of 11 new games.

“We’re particularly pleased with the confidence that investors have demonstrated in our 2021 strategy and enhanced leadership team,” continued Mr. Arviv. “Richard Carter and I have taken active leadership roles within Bragg to ensure the future success of the company. Our partnership represents alignment to move our global strategy forward and our extensive networks and personal reputations within the U.S. gaming market will add tremendous value for Bragg shareholders. With the completion of our capital raise last week, we are now extremely well-positioned to capitalize on the explosive growth in the online gaming sector. We continue to expand throughout Europe and Latin America and are focused on expanding our presence and establishing new partnerships in the North American market in 2021.”

Third Quarter 2020 Highlights and Business Advancements

  • Group revenue of €11.7m (C$18.1m) vs €6.8m (C$10.5m) in Q3-2019 representing 72 per cent growth year over year. The Group experienced a 3.3 per cent decrease over the previous quarter (€12.1m (C$18.8m) in Q2-2020), due to seasonality.

  • Group Adjusted EBITDA of €1.8m (C$2.8m), representing significant growth from €0.2m (C$0.3m) in the prior year. Adjusted EBITDA margins improved significantly, reaching 15.7 per cent in the quarter (Q3 2019: 2.6 per cent).

  • Significant increase in total bets for the period; up 95 per cent from the same period in 2019, totaling €3.3b (C$5.1b), as compared to €1.7b (C$2.6b) in Q3-2019. The number of unique players^ increased by 89 per cent to 1.8m (Q3-2019: 1.0m). The increase in bets and unique players are a result of significant additions to Bragg’s content offering and technical improvements to Bragg’s platform.

  • Successful launch of 14 new operators

  • Expanded geographic presence with entry into two new markets; Denmark and Latvia

  • Decreased dependence on our top ten customers, with revenue concentration from these customers for the nine months ended September 30, 2020 of 62 per cent, down significantly from 76 per cent for the nine months ended September 30, 2019. This decrease demonstrates the underlying success of the Group’s diversification efforts and international growth initiatives.

  • Enhanced leadership team with addition of Richard Carter, former CEO of SBTech. Richard successfully led SBTech though their merger with DraftKings.


1 Revenue - includes group share in game and content, platform fees and management and turnkey solutions
2 Adjusted EBITDA - excludes income or expenses that relate to exceptional items and non-cash share-based charges
^ Unique players - an individual who made a real money bet at least once during the period
3 For ease of reference, we present the financial results in CAD at today’s exchange rate of €1 = C$1.55

Full year 2020 Financial Guidance
The Group’s solid financial growth continued into the fourth quarter of 2020, with revenue expected to be in line with management expectations. Bragg forecasts revenue for 2020 to be circa €43m (C$67m) (versus actual 2019 revenue of €26.6m (C$41.2m), an increase of up to 62 per cent versus 2019, with Adjusted EBITDA for 2020 in the range of €5.2m to €5.6m (C$8.1m to C$8.7m) (versus actual 2019 Adjusted EBITDA of €1.0m (C$1.6m)).

2021 Financial Guidance
Bragg forecasts 2021 to be in the range of €47m to €51m (C$73m to C$79m), and Adjusted EBITDA for 2021 to be in the range of €6.3m to €6.7m (C$9.8m – 10.4m).

Third Quarter 2020 Conference Call Information
Adam Arviv, Bragg’s Interim Chief Executive Officer, will host the conference call along with Chief Strategy Officer Yaniv Spielberg and Chief Financial Officer Ronen Kannor. The conference call is scheduled to take place on November 23rd, 2020 at 8:30 a.m. Eastern Time.

To join the call, please use the below dial-in information:
US/Canada: +1 270 215 9892
US/Canada (toll-free): +1 866 997 6681
UK: 0 2031070289 or 0 8000288438
Passcode: 1239305

A replay of the call will be available for seven days following the conclusion of the live call. In order to access the replay, dial +1 404 537 3406 or +1 855 859 2056 (toll-free) and use the passcode 1239305.

About Bragg Gaming Group
Bragg Gaming Group Inc. (TSXV:BRAG, OTC:BRGGF) is an innovative B2B online gaming solution provider. Leveraging their industry-leading technology, it offers a turnkey solution, including an omni-channel retail, online and mobile iGaming platform, as well as advanced casino content aggregator, sportsbook, lottery, marketing and operational services. Renowned for its rapid and seamless integration, its content aggregator combines casino, slots, live dealer, lottery, virtual sports and instant-win game content from top tier gaming content providers, along with proprietary content, and is fully compliant with major regulated jurisdictions.

Capitalizing on its current portfolio and through targeted acquisitions, Bragg is focused on becoming a leader within the evolving global gaming industry. Learn more at

For Bragg Gaming Group, contact:
Yaniv Spielberg, CSO, Bragg Gaming Group Inc.

For media enquiries or interviews, please contact:
Lina Sennevall, Square in the Air

For US investor inquiries, please contact:
Laine Yonker, Edison Group

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the impact of COVID-19 on the business of Bragg; the countercyclical growth of the business of Bragg; the regulatory regime governing the business of Bragg; the operations of the Company; the products and services of the Company; Bragg's customers; acquisition opportunities; the growth of Bragg's business, which may not be achieved or realized within the time frames stated or at all; and the anticipated size and/or revenue associated with the gaming market globally.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the following: risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the inability to access sufficient capital from internal and external sources; the inability to access sufficient capital on favorable terms; realization of growth estimates, income tax and regulatory matters; the ability of Bragg to implement its business strategies; competition; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices; the estimated size of the gaming market globally; changes in customer demand; disruptions to our technology network including computer systems and software; natural events such as severe weather, fires, floods and earthquakes; and risks related to health pandemics and the outbreak of communicable diseases, such as the current outbreak of COVID-19.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Any forward-looking statement made by the Company in this news release or the earnings call is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Company nor any of its management or directors undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Non-IFRS Financial Measures

Statements in this news release make reference to "Adjusted EBITDA", which is a non-IFRS (as defined herein) financial measure that the Company believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company's past financial performance and prospects for the future. The Company believes that "Adjusted EBITDA" provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of the Company's core operating results. "Adjusted EBITDA" is a financial measure that does not have a standardized meaning under International Financial Reporting Standards ("IFRS"). As there is no standardized method of calculating "Adjusted EBITDA", it may not be directly comparable with similarly titled measures used by other companies. The Company considers "Adjusted EBITDA" to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. "Adjusted EBITDA" is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.