Bragg Gaming Group Inc (CVE:BRAG) (OTC:BRGGF), an online gaming solutions provider, swung to a profit and saw its revenue double in the second quarter thanks to a growing base of customers, according to financial results released after the bell Thursday.
The company posted revenue of C$18.9 million in the three months ended June 30, more than double the C$9.2 million it made in the same period of 2019. Its adjusted EBITDA swung to a C$2.8 million gain from a loss of C$500,000 in the second quarter last year.
“We’re extremely pleased with the substantial progress we’ve achieved so far in 2020,” Chairman Paul Pathak said in a statement. “We’ve delivered strong revenue and EBITDA growth and have made great strides in diversifying our revenues and reaching new audiences.”
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Bragg signed up 11 new customers globally in the quarter, including MaxEnt, SuperBet and Candlebets. The company also strengthened its portfolio of games with the launch of an additional 8 games, including ones by Gamomat, Kalamba and Golden Hero.
“As we expand globally, we’ve also continued to invest in our people, platforms and products,” Pathak said. “Our entry earlier this year into the burgeoning US gaming market has given us a foundation from which to build our presence, and we’re looking at a number of promising opportunities for growth. We’re also building our presence in new markets, including eastern Europe and Latin America.”
Looking ahead, Bragg is maintaining its guidance for 2020 as a whole. The company forecasts revenue for the year to be between C$59 million and C$62 million, which would represent a roughly 50% increase over its 2019 revenue of C$26.6 million.
The company expects adjusted EBITDA between C$8.1 million and C$8.7 million, significantly higher than the C$1.5 million it earned last year.
Bragg will hold a conference call to discuss the results at 8:30 am ET on Tuesday, September 1.
Additionally, the company announced that Adam Arviv has been named interim chief executive officer until the company’s next annual meeting of shareholders. He is stepping in for Dominic Mansour, who is taking a period of paid leave for personal reasons, the company said. Arviv will also serve on the board of directors.
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