Toronto firm Bragg Gaming Group Inc has released its financial results for the three months ended June 30, 2020. Updating investors the firm noted continued strong upward revenue and adjusted EBITDA growth trajectory over the quarter. Revenue growth equaled 107% year-over-year while adjusted EBITDA of C$2.8m in the quarter as compared to a C$0.5m loss for the same period in the prior year.
Bragg said it continues to focus on growing and diversifying its global footprint and winning customers in new jurisdictions, demonstrated by the signing of 11 new customers in the quarter including MaxEnt, SuperBet and Candlebets.
“We’re extremely pleased with the substantial progress we’ve achieved so far in 2020,” said Paul Pathak, Chair of the Board of Directors. “We’ve delivered strong revenue and EBITDA growth and have made great strides in diversifying our revenues and reaching new audiences.”
He added: “As we expand globally, we’ve also continued to invest in our people, platforms and products. 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.”
While acknowledging the widespread adverse impact of the COVID-19 pandemic on people and businesses globally, Bragg said its business has experienced a significant uptick in consumer engagement and revenue, as the online casino gaming sector continues to expand.
Focusing on the headline figures, the report cited group revenue of C$18.9m vs C$9.2m in Q2 of 2019 and C$13.7m in Q1 of 2020, representing 107% growth year-on-year and 38% quarter-on-quarter, respectively. Group adjusted EBITDA of C$2.8m represented significant growth from a loss of C$0.5m in the prior year and a gain of C$1.1m in Q1 of 2020.
Turning to Q3 trading, Bragg advised that its solid financial growth has continued with revenue expected to be in line with management expectations. Consequently, management is confident in its financial guidance for 2020 and has updated its 2020 revenue forecast.
The group forecasts revenue for 2020 to be in the range of C$59m to C$62m versus actual 2019 revenue of C$41.5m, an increase of up to 50%. Adjusted EBITDA for 2020 is predicted to be in the range of C$ 8.1m to C$8.7m versus actual 2019 adjusted EBITDA of C$1.5m.
Bragg also used its financial update to confirm the appointment of Adam Arviv as a director, serving on the board of directors of the company until the next annual meeting of shareholders. CEO Dominic Mansour is taking a period of paid leave for personal reasons and Arviv has been appointed as the Interim CEO.
“We’re pleased to welcome Adam to the Board and we thank him for taking on the role of Interim Chief Executive Officer,” said Pathak. “We’re confident his appointment to the Board will assist with the successful execution of Bragg’s existing strategic plan.”
