TORONTO, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Bragg Gaming Group BRAGBRGGF (Bragg) released its results for the third quarter ended September 30, 2019, achieving strong sequential revenue growth of 13 per cent over Q2 2019.
Third Quarter 2019 Results
In the third quarter, the Company delivered continued growth with revenue of CDN $10.0M, gross profit of CDN $4.3M, EBITDA of CDN $0.2M, and net loss from continuing operations of CDN $0.2M. These results culminated in strong performance for the first nine months of 2019 with revenue of CDN $28.0M, gross profit of CDN $12.6M, EBITDA of CDN $0.6M and net loss from continuing operations of CDN $7.6M.[*]
"We've made significant progress this quarter, with our focus on B2B with ORYX driving 30 per cent revenue growth compared to Q3 2018. This resulted in a significant improvement in ORYX's gross profit and in-turn drove ORYX EBITDA to grow by over 300 per cent to CDN $1.2M," stated Dominic Mansour, Bragg's CEO. "I am extremely pleased with the Company's progression over the past quarter. We've proven that, with our modern technology and seamless integration process, we are able to expand our operator base at a significantly faster rate than the competition. I am particularly pleased that the strong momentum of operator launches experienced in the first half of the year continued into Q3 with the successful launch of 10 new operators. We expect this momentum to further accelerate throughout Q4 with more than 14 launches in the pipeline."
US Market Entry
Bragg recently entered into a partnership with Kambi Group, a well-established provider of premium sports betting services with an extensive client base. Bragg will provide their casino services and unique player account management (PAM) along with Kambi's sports betting services to operators worldwide, with an initial focus on the burgeoning US market.
This newly created partnership recently signed a deal with New York's Seneca Gaming Corporation (SGC), which operates all of the Seneca Nation's Class III gaming operations in western New York. The Bragg and Kambi teams will collaborate to provide SGC with a combination of their services and products across SGC's three New York casinos.
"Our partnership with Kambi and the initial deal with Seneca are both huge stepping stones for Bragg as we commence operations in the U.S. and continue to expand our global reach," noted Mansour. "Our strategic focus in the U.S. is to partner with tier-1 casinos and operators. I believe that this Seneca deal will be the first of many in the coming years, particularly as the legal landscape continues to mature."
Strategic Review of Online Media Division
The strategic review of the online media divisions consisting of the GiveMeSport asset has continued through the second half of 2019, and the Board expects this to be completed in Q1 2020.
In the interim, Bragg continues to enhance the GMS platform in order to drive more volume. The relaunch of the GMS website was completed in July, and the site is now quicker, slicker, more intuitive, and has a lighter ad load. These improvements culminated in peak site traffic in October 2019, which were 46 per cent greater than October 2018, growing from 15.9M visitors to 23.3M organic visitors.
Directorate Changes
Bragg's CFO, Akshay Kumar, has announced his intent to step down as Chief Financial Officer of the Company for personal reasons. Effective November 13, 2019, Steven Prowse will assume the role of Chief Financial Officer. Mr. Kumar will assist Mr. Prowse, ensuring a seamless transition.
Prowse is an industry veteran with over 10 years' experience in the betting and gaming sector. He served as Group Finance Director for PartyGaming plc (later bwin.party), a gaming business listed on the London Stock Exchange, and was instrumental in M&A, including the acquisition of Foxy Bingo and the €2.1bn merger with bwin in 2011 where he continued as Group Finance Director.
Dominic Mansour said "I would like to thank Akshay for his hard work and contributions to Bragg. Our team wishes him all the best for the future. We also look forward to welcoming Steven to the Bragg team and believe his expertise with M&A in the sector will be extremely valuable during this pivotal time for the Company."
Steven Prowse said "I am delighted to join Bragg at such an early and exciting point in its growth trajectory. Bragg has market-leading technology, products and people. As such, I see enormous potential for this business and am very much looking forward to being a part of that growth."
Third Quarter 2019 Conference Call Information
Dominic Mansour will host the call along with Akshay Kumar, Bragg's Chief Financial Officer. The call is scheduled to take place on Tuesday, November 12th, at 8:30am EST.
To join the call, please use the below dial-in information:
US: +1 270 215 9892
US (toll-free): +1 866 997 6681
UK: 0800 917 4860
Passcode: 2572907
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 2572907.
About Bragg Gaming Group
Bragg Gaming Group BRAGBRGGF is a next generation gaming group with cutting-edge technology, leading brands and world-class management expertise, developing into a global gaming force. Formed by a team of gaming industry experts, Bragg's portfolio includes ORYX Gaming, an innovative B2B gaming technology platform and casino content aggregator, and GiveMeSport, a top sports media outlet and with over 26M fans, the number one Facebook Sport Publisher. Through these brands, Bragg is focused on becoming a leader within the evolving global gaming industry. Learn more at https://www.bragg.games.
For Bragg Gaming Group, contact:
Dominic Mansour, CEO
Akshay Kumar, CFO
via Thirty Dash Communications
+1-416-710-3370
wynn@thirtydash.ca
For media enquiries or interviews, please contact:
Wynn Theriault, Thirty Dash Communications
+1-416-710-3370
wynn@thirtydash.ca
For investor inquiries, please contact:
Tim Dawson, Bragg Gaming Group
+1-289-276-1167
tim@bragg.games
For US investor inquiries, please contact:
Joe Green/Laine Yonker, Edison Group
+1-646-653-7030/7035
jgreen@edisongroup.com/lyonker@edisongroup.com
[*] All results presented are those from continuing operations except where explicitly stated. EBITDA is a company-specific non-GAAP non-IFRS financial measure. A reconciliation to Net loss is provided in the ‘Management Discussion and Analysis for the three-month and nine-month period ended September 30, 2019.'
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