Bragg Gaming Group sees 2Q revenue rise 28% as more users place higher bets on its platforms

Bragg Gaming Group Inc revealed that its 2Q revenue grew by 28% to 15.5 million euros thanks to a growing number of users placing higher bets on its platforms. The gaming company reported adjusted EBITDA of 1.9 million euros compared to 1.75 million euros in the same year-ago quarter, while its adjusted EBITDA margins fell by 2.1% to 12.3%. Bragg recently closed its acquisition of US and European-focused casino content studio Wild Streak LLC, which is expected to propel Bragg’s business model into an in-house proprietary online gaming content studio to drive higher gross profit margins. READ: Bragg Gaming Group says ORYX Gaming granted a license to supply its exclusive content via its proprietary remote games server to operators in Greece But it was wagering revenue and a growing user base that grew Bragg’s revenue in 2Q. Wagering revenue generated by customers increased 15.9% to 3.8 billion euros compared to 3.3 billion euros in the same quarter last year, while the number of unique players on its Oryx Hub distribution platform increased by 21% to 2.3 million, from 1.9 million over the same three-month period last year. Bragg said its gross profit increased by 37.5% to 7 million euros as its margin improved due to a shift towards a higher proportion of iGaming revenues and turnkey services, which have a lower cost of sales compared to games and content, according to the company. The company reported a net loss of 2.3 million euros, an increase of 1.9 million euros from the same quarter a year prior, which it attributed to an increase in employee costs and its Nasdaq listing efforts. “Bragg had strong 2021 second-quarter financial performance while also continuing to advance our in-house content development strategy and new market entry plans, including entry into the North American market, while also making progress on our Germany mitigation strategies,” Bragg Gaming CEO Richard Carter said in a statement. “Overall, our comprehensive growth initiatives are expected to contribute to revenue and Adjusted EBITDA growth over the balance of this year and more meaningfully in 2022,” he addd. Wild Streak acquisition leads to updated FY guidance Bragg Gaming also provided an updated FY2021 guidance to include contributions from the Wild Streak acquisition. The company said it expects to generate 49 million euros in revenue and adjusted EBITDA of 5.4 million euros, a lift from its pre-acquisition revenue guidance of 47 million euros and adjusted EBITDA of 4 million euros. Shareholders also got a peak into Bragg’s FY2022 guidance of 54-56 million euros in revenue. “As we continue to transition to the distribution of internally developed content, we remain focused on growing the number of markets we serve,” CEO Carter added. “We are moving forward with further expansion in the US and preparing for the introduction of our games in Ontario when that market opens, which is expected before year-end.” The company is diversifying away from the German market to focus more on North America and international iGaming markets like the UK and Italy, Carter said. “With our technology platform, growing proprietary premium content portfolio, value-added player engagement tools, and global distribution capabilities, we believe Bragg is well-positioned to capture a growing share of the large global iGaming market. “These factors, combined with our low capitalized expenditure requirements and predominantly fixed cost operating model, will enable Bragg to grow revenue and adjusted EBITDA margins that results in near and long-term adjusted EBITDA growth and creates value for our shareholders,” he concludexd. Bragg Gaming ended its 2Q with a cash balance of 21 million euros. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas