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Bragg Gaming Group’s 3Q shows strong sequential revenue growth of 13%

The company is getting a boost from its lucrative US gaming market partnership with Kambi Group and Seneca Gaming

Bragg Gaming Group - Bragg Gaming Group’s 3Q shows strong sequential revenue growth of 13% to C$10M
For the third quarter ended September 30, the gaming group clocked up substantial revenue of C$10 million

Bragg Gaming Group (CVE:BRAG) (OTCMKTS:BRGGF) has reported third quarter numbers showing strong sequential revenue growth of 13% over the second quarter.

In a statement accompanying the gaming company’s latest numbers, CEO Dominic Mansour said: “We’ve made significant progress this quarter, with our focus on B2B with ORYX driving 30% revenue growth compared to the third quarter in 2018.”

He added: “This resulted in a significant improvement in ORYX’s gross profit and in-turn drove ORYX EBITDA (earnings before interest, tax, depreciation and amortization) to grow by over 300% to C$1.2 million.”

READ: Bragg Gaming jumps into the US gambling market with three-casinos deal in New York

The Bragg Gaming boss said he was pleased with the company’s progress during the 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,” said Mansour. He noted that new operator launches in the first half of the year continued in the third quarter with 10 new operators.

At the end of July, ORYX Gaming announced that it had launched a record 21 new operators onto the platform in the first half of 2019, bringing the total number of operators to over 65. It also said several operators are scheduled to complete integrations on ORYX Hub in the latter half of the year, including GiG, Aposta.la and a number of tier 1 operators in the Spanish and Romanian markets.

“We expect this momentum to further accelerate throughout the fourth quarter with more than 14 launches in the pipeline,” said Mansour.

For the third quarter ended September 30, the gaming group clocked up substantial revenue of C$10 million.

The company also posted a gross profit of C$4.3 million, underlying earnings (EBITDA) of C$0.2 million and a C$0.2 million loss from operations.

The company said the results culminated in a strong performance for the first nine months of 2019, with revenue of C$28 million, gross profit of C$12.6 million, EBITDA of C$0.6 million and a loss of C$7.6 million from continuing operations.

Breaking into US gambling market 

Bragg Gaming has jumped into the US gambling market with a deal, done in partnership with sports betting provider Kambi Group, which will provide services to three New York casinos.

The Bragg-Kambi partnership will provide Seneca Gaming Corporation’s facilities with ORYX’s online gaming platform, including a player account management (PAM) system, a gaming portal for both desktop and mobile and casino services, all integrated with Kambi’s portfolio of on-property sports wagering products.

“Our partnership with Kambi and the initial deal with Seneca are both huge stepping stones for Bragg as we commence operations in the US and continue to expand our global reach,” said Mansour.

“Our strategic focus in the US 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,” he added.

New blood

Meanwhile, the company also revealed that its CFO Akshay Kumar will step down due to personal reasons on November 13. Steven Prowse will step into the finance role, and Kumar will assist Prowse to ensure a seamless transition.

Prowse is an industry veteran with over a decade’s experience in the betting and gaming sector. He was the group finance director for PartyGaming PLC, which was listed on the London Stock Exchange. He worked on the M&A, and acquisition of Foxy Bingo and Party Gaming's €2.1bn merger with bwin in 2011.

“I would like to thank Akshay for his hard work and contributions to Bragg. Our team wishes him all the best for the future,” said Mansour. “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.”

Prowse said he was delighted to join Bragg at such an “early and exciting point” in its growth trajectory. 

Bragg  Gaming has three core businesses: ORYX, an online casino technology group; GiveMeSport, a sports-focused media company and Facebook’s largest sports publisher; as well as GiveMeBet, a UK-focused online sports betting brand and casino site that aims to draw viewers from GiveMeSport.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

Quick facts: Bragg Gaming Group

Price: 0.98 CAD

Market: TSX-V
Market Cap: $111.46 m

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