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Bragg Gaming Group

BRAGG GAMING GROUP 2021 REPORTS RECORD FOURTH QUARTER RESULTS AS REVENUE RISES 14.4%

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Bragg Gaming Group, a global B2B gaming technology and content provider, today reported record financial results for the fourth quarter and full year ended December 31, 2021. The Company also provided an update on its strategic growth initiatives and reiterated its full year 2022 revenue and Adjusted EBITDA guidance.

Summary of Q4-21 and FY-21 Financial and Operational Highlights

Euros (millions)

Q4-21

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Q4-20

Change

Revenue

€15.8

€13.8

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14.4%

Gross profit

€8.0

€6.0

33.3%

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Gross profit margin

51.0%

43.8%

720bps

Adjusted EBITDA

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€1.5

€1.3

22.2%

Adjusted EBITDA margin

9.8%

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9.1%

70bps

Wagering revenue

€3.1B

€3.4B

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-8.4%

Euros

FY-21

FY-20

Change

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Revenue

€ 58.3

€ 46.4

25.6%

Adjusted EBITDA

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€7.2

€5.5

29.8%

Wagering revenue

€14.3B

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€11.8B

21.1%

 

Management Commentary

“The 2021 fourth quarter concluded an active and productive year for Bragg as continued execution on our key strategic initiatives drove significant operational accomplishments and strong financial results,” said Yaniv Spielberg, Chief Strategy Officer for Bragg Gaming. “In the fourth quarter we went live with our iGaming offering in the newly regulated Netherlands market and also went live in the U.K, the world’s largest iGaming market. Since the beginning of 2021, we have introduced player-popular content in six regulated European markets, increasing our total addressable market (“TAM”) by more than $10 billion to approximately USD$13.5 billion. We have also made significant progress towards our entry into additional new markets and expect to go live with our games in the U.S. and Canada later this year. Furthermore, we have also made substantial progress on our initiative to offer more new high-performing propriety and exclusive third-party online content through our June 2021 acquisition of Wild Streak, the recent introduction of  our first new internally developed games and new exclusive content licensing agreements with leading game developers. Bragg’s continued progress with its new market and content monetization initiatives, combined with 42% growth in new customers in 2021, drove our strong fourth quarter and full year financial results.

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“Fourth quarter revenue of EUR €15.8 million (USD $17.5 million) and Adjusted EBITDA of EUR €1.5 million (USD $1.7 million) surpassed the preliminary results we provided last month and were both fourth quarter records. As a result, 2021 full year revenue and Adjusted EBITDA rose 26% and 30%, respectively to records of EUR €58.3 million (USD $64.7 million) and EUR €7.2 million (USD $8.0 million). In addition, the growing mix of higher gross margin in-house content and platform revenue contributed to a record quarterly gross profit margin of 51% in the fourth quarter, reflecting a 720 basis point year-over-year improvement. Our strong margin performance in the quarter highlights the significant progress we’ve made against our goal to grow gross profit margin to approximately 60% by 2024.

“Our operating momentum has continued in the early months of 2022.  We also continue to make progress on closing our acquisition of Spin Games as Bragg has completed all of its regulatory requirements. We are now awaiting final review by the sole remaining regulatory body which is expected to be complete in the next few months. Importantly, we have made substantial progress on the integration of the Spin Games technology platform with our ORYX platform and have already submitted the integrations for certification by various approved U.S. gaming laboratories. As such, once we receive the remaining required regulatory approval to complete this acquisition, we expect to be able to introduce our iGaming content to players in a number of U.S. states very quickly. Importantly, the pace of U.S. deployments will benefit from Spin Games’ existing relationships with more than 30 U.S. iGaming operators.”

Mr. Spielberg concluded, “Our planned entry into the U.S. and Canada as well as additional regulated European markets this year has Bragg on track to grow our year-end 2022 TAM to more than USD$21 billion. The strong performance we have achieved in a number of our recently entered markets as well as our existing markets in the early months of 2022, and the ongoing roll-out of our new proprietary games, amplifies our confidence for continued operating momentum. As a result, we are reiterating our outlook for 2022 full year revenue of EUR €68-72 million (USD $76-80 million) and Adjusted EBITDA of EUR €9.5-10.5 million (USD $10.5-11.7 million). The midpoints of these ranges  represent growth of 20% and 39%, respectively, over reported full year 2021 revenue and Adjusted EBITDA. We believe the ongoing execution of our operating priorities favourably positions Bragg to both further accelerate this growth in 2023 and create new near- and long-term shareholder value.”

Fourth Quarter 2021 Financial Results and other Key Metrics Highlights

  • Revenue increased by 14.4% to EUR €15.8 million (USD $17.5 million) in Q4 2021 compared to EUR €13.8 million (USD $15.3 million) in Q4 2020. 
  • Wagering revenue generated by customers decreased 8.8% to EUR €3.1 billion (USD $3.4 billion) compared to EUR €3.4 billion (USD $3.8 billion) in Q4 2020 as a result of changes in the product mix, towards PAM, managed services and proprietary content which drove improved gross profit and Adjusted EBITDA.
  • Gross profit increased by 33.3% to EUR €8.0 million (USD $8.9 million) from EUR €6.0 million (USD $6.7 million) in Q4 2020, reflecting higher revenue and a 720 basis point margin improvement to 51.0%.
    • The margin expansion is primarily the result of the continued shift towards a higher proportion of revenues from iGaming and turnkey services, which have lower associated cost of sales when compared to games and content.
  • Net loss for the period was EUR €1.6 million (USD $1.8 million), a decline from a net loss of EUR €5.3 million (USD $5.9 million) in Q4 2020, primarily due to higher gross profit and a reduction in costs related to deferred consideration payable, partially offset by the incremental increase in employee costs and professional fees as a result of the Nasdaq listing.
  • Adjusted EBITDA was EUR €1.5 million (USD $1.7 million), an increase of 22.2% compared to EUR €1.3 million (USD $1.4 million) in Q4 2020. Adjusted EBITDA margin increased by 70 basis points to 9.8%.
  • Cash and cash equivalents as of December 31, 2021 was EUR €16.0 million (USD $17.8 million).

2021 Full Year Financial Results and other Key Metrics Highlights

  • Revenue increased by 25.6% to EUR €58.3 million (USD $64.7 million) for 2021 compared to EUR €46.4 million (USD $51.5 million) in 2020. 
  • Wagering revenue generated by customers increased 21.1% to EUR €14.3 billion (USD $15.9 billion) compared to EUR €11.8billion (USD $13.1 billion) in 2020.
  • The number of unique players using Bragg games via its Oryx Hub distribution platform and content increased by 11.2% to 6.5 million, from 5.9 million in 2020.
  • Gross profit increased by 40.3% to EUR €28.3million (USD $31.4 million) from EUR €20.2million (USD $22.4 million) in 2020, reflecting a 510 basis point margin improvement to 48.6%.
  • Net loss for the period was EUR €7.5 million (USD $8.3 million), an improvement from the net loss of EUR €14.6 million (USD $16.2 million) in 2020.
  • Adjusted EBITDA was EUR €7.2 million (USD $8.0 million), an increase of 29.8% compared to EUR €5.5 million (USD $6.1 million) in 2020. Adjusted EBITDA margin increased by 40 basis points to 12.3%.

Full Year 2022 Revenue and Adjusted EBITDA Guidance

Bragg today reiterated its outlook for 2022 full year expected revenue of EUR €68-72 million (USD $76-80 million) and Adjusted EBITDA of EUR €9.5-10.5 million (USD $10.5-11.7 million).  The midpoints of the 2022 revenue and Adjusted EBITDA guidance ranges represent growth of 20% and 39%, respectively, over the reported  full year 2021 revenue and Adjusted EBITDA.

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Bragg Gaming Group

Bragg Gaming Group Secures B2B Licence to Provide Casino Game Aggregation in Peru

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Bragg Gaming Group is now registered as an approved service provider by the Peruvian Ministry of Foreign Trade and Tourism (MINCETUR), allowing for the distribution of online casino games, including Bragg’s proprietary and exclusive games portfolio, via the Bragg HUB aggregation platform to operators in the soon-to-be-launched Latin American iGaming market.

The award of a B2B license reinforces Bragg’s position as a leading supplier and content aggregator in the Latin American region which is known for passionate fans and customers alike.

Bragg’s constantly updated online casino aggregation product boasts over 9000 titles all delivered by the Bragg HUB content delivery platform, while the Bragg Remote Gaming Server (RGS) is licensed, certified, and approved to deliver casino games across more than 25 international regulated gaming markets.

In addition, the full-service Bragg Player Account Management (PAM) platform features a proprietary set of tools including player and payments management, automated KYC, compliance, CRM, and promotions, as well as fraud and risk management.

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All content delivered on the Bragg HUB aggregation platform comes with the company’s Fuze promotional tools as standard which offer player engagement features on games such as free rounds, free bets, tournaments, and quests. Fuze promotions work with both online casino and sports betting products delivered via the Bragg HUB.

The B2B license in Peru forms part of Bragg’s strategy to offer its services to more partners in the LatAm region, as more countries prepare to regulate both online casino and sports betting.

Bragg Gaming Group is fully compliant with Peruvian regulations and will allow local operator partners to manage their entire product suite. Bragg Gaming Group’s Peru B2B license is under its Oryx Gaming Limited subsidiary, registered by MINCETUR under license number PSV0079.

Ivica Jovanovski, Head of Aggregation at Bragg Gaming, said: “Bragg has a proven track-record of quickly adapting our cutting-edge platform technology and games to the regulatory requirements of new jurisdictions, and we are excited to be fully prepared and ready to offer our services immediately when the Peruvian online market opens.”

“Peru has great potential as a new market, and we look forward to assisting our operator partners through the process of launching competitive offerings online, including a portfolio of premium games which can be enjoyed by Peruvian players.”

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Bragg Gaming Launches Boardwalk Slots Bankers & Cash with Caesars Digital

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Bragg Gaming Group announced the launch of a custom slot game developed for Caesars Digital, Boardwalk Slots Bankers & Cash, now exclusively live on Caesars Palace Online Casino and Caesars Sportsbook & Casino in Michigan and New Jersey.

The bespoke release takes proven game features and artwork from Bragg’s popular slot title Bankers & Cash and combines it with the evocative Boardwalk Slots brand owned by Caesars Digital. The new title delivers a tailored slots experience with established mechanics invoking the thrills of Atlantic City, where fortune lies around every corner.

Every spin of the reels holds the thrill of the possible riches that lie in wait, as well as delivering personalized rewards and unforgettable experiences available through the industry-leading customer loyalty program, Caesars Rewards. The title represents the latest installment of exclusive entertainment IP delivered by Caesars Digital to offer a unique customer experience only found on its iGaming Platforms.

With a classic-feeling three-reel slot in the base game, the Boardwalk Slots Bankers & Cash Piggy Banker guards the vault and pays out regular multiplier wins. During free games, 3 Vault scatter symbols on a single line expand the reels to a 5×3 format to offer the chance of unlocking the vaults to release mega cash prizes.

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Kunal Mishra, Chief Operating Officer, Americas for Bragg Gaming Group, said: “We are excited to be releasing Boardwalk Slots Bankers & Cash, our second bespoke game release with Caesars Digital, bringing even more quality, exclusive content to players on Caesars iGaming platforms.

“As a key supplier to Caesars Digital and following the success of Lady Luck Casino Egyptian Magic launched last year, we are confident that their players are going to have a lot of fun spinning the reels of this classic-feeling game and aiming to get the Piggy Banker to open those vaults.”

Matt Sunderland, Senior Vice President and Chief iGaming Officer at Caesars Digital, said: “Boardwalk Slots Bankers & Cash is the latest addition to the growing bespoke game portfolio of exclusive slots available only to players on our online casino platforms. Bragg has a great track record of delivering player-favorites and I’m sure this title will provide exceptional entertainment to our online casino players in Michigan and New Jersey.”

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Bragg Gaming Continues U.S. Expansion with Golden Nugget in Michigan

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Bragg Gaming Group proudly announces that it has gone live with its newest games and Remote Game Server (RGS) technology at Golden Nugget in Michigan. This milestone marks a significant step in Bragg’s ongoing commitment to delivering innovative and engaging content to players across North America.

Games now available to Golden Nugget’s players in Michigan include popular titles such as “Cai Fu Emperor Ways” and “Egyptian Magic” from Bragg’s Atomic Slot Lab, along with the thrilling “Devil’s Lock” from Bluberi.

All online casino games delivered on Bragg’s new RGS technology come with the Company’s Fuze promotional tools as standard which offer player engagement features on games such as free rounds, tournaments and quests.

H2 Gambling Capital projects an impressive Gross Win of over USD $2 billion for the regulated online casino market in Michigan in 2024, highlighting the tremendous growth potential in the region.

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Kunal Mishra, Chief Operating Officer – Americas, at Bragg Gaming Group, said: “We continue to strengthen our relationships with key iGaming operators in North America, and the expansion with Golden Nugget in Michigan is a testament to our successful strategy. By offering our high-quality, engaging content, we aim to contribute to the long-term growth of our partners and provide an exceptional gaming experience for players.

“This achievement builds on Bragg’s existing collaboration with Golden Nugget, aligning with the company’s vision to deliver cutting-edge gaming solutions to players in the rapidly growing U.S. iGaming market.”

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