Bragg Gaming Group Inc has announced its financial results for the three-months and year-ended December 31, 2019 today. The firm revealed revenue growth of 41% year-on-year in 2019 on a pro forma basis (if subsidiary Oryx was owned by Bragg for the entirety of 2018), with total revenue of $40.57m, gross profit of $18.30m, and clean EBITDA of $1.83m.
“2019 was Bragg’s first full year of operations, and we’ve taken significant strides to establish ourselves as one of the fastest growing B2B providers in the gaming space,” said CEO Dominic Mansour. “We experienced record revenue growth throughout 2019 and reached positive EBITDA in the fourth quarter.”
“The strong growth can be attributed to four key factors,” he added. “The seamlessness of our integration process allowing us to swiftly and nimbly grow our operator base; the unique and local content, advanced, market leading features and player engagement tools through the Oryx Hub aggregator platform; the number of notable new client wins establishing us as a key partner in the space; and the growth of regulated revenues combined to put us in a market-leading position.”
Focusing on 2019 operational highlights and business advancements, Bragg cited continuing geographic expansion and diversification of Oryx’s revenues. The company’s dependence on its top five clients steadily decreased throughout 2019, with only 46% of total revenues derived from its top five clients in December 2019, down from 73% in December 2018.
In addition, Oryx partnered with operators across new physical territories, and entered lucrative regulated markets including South America (Colombia) and the US.
The company also referred to the formation of its strategic partnership with sports betting service provider Kambi. Along with Kambi’s sports betting services, Bragg provides its casino services and unique player account management (PAM) system to operators worldwide. The first joint deal signed is 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.
“We have recovered a major portion of our missed 2019 EBITDA target, which was negatively affected by revenue recognition, in the first quarter of 2020,” noted Mansour. “We will recover the remainder by 2020 year-end. With the completion of the GMS sale, we are now cash-flow positive and able to focus 100 per cent of our resources and energy on enhancing the Oryx platform and expanding our presence worldwide.”