TORONTO–(BUSINESS WIRE)–Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) (“Bragg” or the “Company”), a world B2B gaming know-how and content material supplier, in the present day reported document monetary outcomes for the fourth quarter and full 12 months ended December 31, 2021. The Company additionally offered an replace on its strategic development initiatives and reiterated its full 12 months 2022 income and Adjusted EBITDA steering.
Summary of This autumn-21 and FY-21 Financial and Operational Highlights
Euros (thousands and thousands)
This autumn-21
This autumn-20
Change
Revenue
€15.8
€13.8
14.4%
Gross revenue
€8.0
€6.0
33.3%
Gross revenue margin
51.0%
43.8%
720bps
Adjusted EBITDA
€1.5
€1.3
22.2%
Adjusted EBITDA margin
9.8%
9.1%
70bps
Wagering income
€3.1B
€3.4B
-8.4%
Euros
FY-21
FY-20
Change
Revenue
€ 58.3
€ 46.4
25.6%
Adjusted EBITDA
€7.2
€5.5
29.8%
Wagering income
€14.3B
€11.8B
21.1%
Management Commentary
“The 2021 fourth quarter concluded an energetic and productive 12 months for Bragg as continued execution on our key strategic initiatives drove important operational accomplishments and robust monetary outcomes,” stated Yaniv Spielberg, Chief Strategy Officer for Bragg Gaming. “In the fourth quarter we went reside with our iGaming providing within the newly regulated Netherlands market and likewise went reside within the U.Okay, the world’s largest iGaming market. Since the start of 2021, we now have launched player-popular content material in six regulated European markets, rising our complete addressable market (“TAM”) by greater than $10 billion to roughly USD$13.5 billion. We have additionally made important progress in direction of our entry into extra new markets and anticipate to go reside with our video games within the U.S. and Canada later this 12 months. Furthermore, we now have additionally made substantial progress on our initiative to supply extra new high-performing propriety and unique third-party on-line content material by means of our June 2021 acquisition of Wild Streak, the latest introduction of our first new internally developed video games and new unique content material licensing agreements with main sport builders. Bragg’s continued progress with its new market and content material monetization initiatives, mixed with 42% development in new prospects in 2021, drove our sturdy fourth quarter and full 12 months monetary outcomes.
“Fourth quarter income of EUR €15.8 million (USD $17.5 million) and Adjusted EBITDA of EUR €1.5 million (USD $1.7 million) surpassed the preliminary outcomes we offered final month and had been each fourth quarter data. As a consequence, 2021 full 12 months income and Adjusted EBITDA rose 26% and 30%, respectively to data of EUR €58.3 million (USD $64.7 million) and EUR €7.2 million (USD $8.0 million). In addition, the rising combine of upper gross margin in-house content material and platform income contributed to a document quarterly gross revenue margin of 51% within the fourth quarter, reflecting a 720 foundation level year-over-year enchancment. Our sturdy margin efficiency within the quarter highlights the numerous progress we’ve made towards our aim to develop gross revenue margin to roughly 60% by 2024.
“Our working momentum has continued within the early months of 2022. We additionally proceed to make progress on closing our acquisition of Spin Games as Bragg has accomplished all of its regulatory necessities. We at the moment are awaiting remaining evaluate by the only real remaining regulatory physique which is anticipated to be full within the subsequent few months. Importantly, we now have made substantial progress on the mixing of the Spin Games know-how platform with our ORYX platform and have already submitted the integrations for certification by numerous accredited U.S. gaming laboratories. As such, as soon as we obtain the remaining required regulatory approval to finish this acquisition, we anticipate to have the ability to introduce our iGaming content material to gamers in a lot of U.S. states in a short time. Importantly, the tempo of U.S. deployments will profit from Spin Games’ current relationships with greater than 30 U.S. iGaming operators.”
Mr. Spielberg concluded, “Our deliberate entry into the U.S. and Canada as properly as extra regulated European markets this 12 months has Bragg on observe to develop our year-end 2022 TAM to greater than USD$21 billion. The sturdy efficiency we now have achieved in a lot of our lately entered markets as properly as our current markets within the early months of 2022, and the continuing roll-out of our new proprietary video games, amplifies our confidence for continued working momentum. As a consequence, we’re reiterating our outlook for 2022 full 12 months income 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 those ranges signify development of 20% and 39%, respectively, over reported full 12 months 2021 income and Adjusted EBITDA. We consider the continuing execution of our working priorities favourably positions Bragg to each additional speed up this development in 2023 and create new near- and long-term shareholder worth.”
Fourth Quarter 2021 Financial Results and different Key Metrics Highlights
Revenue elevated by 14.4% to EUR €15.8 million (USD $17.5 million) in This autumn 2021 in comparison with EUR €13.8 million (USD $15.3 million) in This autumn 2020.
Wagering income generated by prospects decreased 8.8% to EUR €3.1 billion (USD $3.4 billion) in comparison with EUR €3.4 billion (USD $3.8 billion) in This autumn 2020 as a results of modifications within the product combine, in direction of PAM, managed providers and proprietary content material which drove improved gross revenue and Adjusted EBITDA.
Gross revenue elevated by 33.3% to EUR €8.0 million (USD $8.9 million) from EUR €6.0 million (USD $6.7 million) in This autumn 2020, reflecting increased income and a 720 foundation level margin enchancment to 51.0%.
The margin growth is primarily the results of the continued shift in direction of the next proportion of revenues from iGaming and turnkey providers, which have decrease related value of gross sales when in comparison with video games and content material.
Net loss for the interval was EUR €1.6 million (USD $1.8 million), a decline from a web lack of EUR €5.3 million (USD $5.9 million) in This autumn 2020, primarily resulting from increased gross revenue and a discount in prices associated to deferred consideration payable, partially offset by the incremental enhance in worker prices {and professional} charges as a results of the Nasdaq itemizing.
Adjusted EBITDA was EUR €1.5 million (USD $1.7 million), a rise of twenty-two.2% in comparison with EUR €1.3 million (USD $1.4 million) in This autumn 2020. Adjusted EBITDA margin elevated by 70 foundation factors to 9.8%.
Cash and money equivalents as of December 31, 2021 was EUR €16.0 million (USD $17.8 million).
2021 Full Year Financial Results and different Key Metrics Highlights
Revenue elevated by 25.6% to EUR €58.3 million (USD $64.7 million) for 2021 in comparison with EUR €46.4 million (USD $51.5 million) in 2020.
Wagering income generated by prospects elevated 21.1% to EUR €14.3 billion (USD $15.9 billion) in comparison with EUR €11.8billion (USD $13.1 billion) in 2020.
The variety of distinctive gamers utilizing Bragg video games through its Oryx Hub distribution platform and content material elevated by 11.2% to six.5 million, from 5.9 million in 2020.
Gross revenue elevated by 40.3% to EUR €28.3million (USD $31.4 million) from EUR €20.2million (USD $22.4 million) in 2020, reflecting a 510 foundation level margin enchancment to 48.6%.
Net loss for the interval was EUR €7.5 million (USD $8.3 million), an enchancment from the online lack of EUR €14.6 million (USD $16.2 million) in 2020.
Adjusted EBITDA was EUR €7.2 million (USD $8.0 million), a rise of 29.8% in comparison with EUR €5.5 million (USD $6.1 million) in 2020. Adjusted EBITDA margin elevated by 40 foundation factors to 12.3%.
Full Year 2022 Revenue and Adjusted EBITDA Guidance
Bragg in the present day reiterated its outlook for 2022 full 12 months anticipated income 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 income and Adjusted EBITDA steering ranges signify development of 20% and 39%, respectively, over the reported full 12 months 2021 income and Adjusted EBITDA.
Investor Conference Call
The Company will host a convention name in the present day, March 10, 2022, at 8:00 a.m. Eastern Time, to debate its fourth quarter 2021 outcomes. During the decision, administration will evaluate a presentation that might be made obtainable to obtain or observe as a webcast at http://www.bragg.games/investors.
To be part of the decision, please use the beneath dial-in data:
Participant Toll-Free Dial-In Number (US/CANADA): (888) 210-4227
Participant Toll Dial-In Number (INTERNATIONAL): (646) 960-0341
United Kingdom: Toll-Free: +44 800 358 0970
Conference ID: 2522980
Or be part of the webcast at http://www.bragg.games/investors beneath the Media part.
A replay of the decision might be obtainable till March 21, 2022 following the conclusion of the reside name. In order to entry the replay, dial (647) 362-9199 or (800) 770-2030 (toll-free) and use the passcode 2522980.
Cautionary Statement Regarding Forward-Looking Information
This information launch could include forward-looking statements or “forward-looking data” throughout the that means of relevant Canadian securities legal guidelines (“forward-looking statements”), together with, with out limitation, statements with respect to the next: the Company’s strategic development initiatives and company imaginative and prescient and technique; monetary steering for 2021 and 2022, anticipated efficiency of the Company’s enterprise; growth into new markets; the affect of the brand new German regulatory regime, anticipated future development and growth alternatives; anticipated advantages of transactions, together with the acquisition of Wild Streak and Spin; anticipated future actions and selections of regulators and the timing and affect thereof. Forward-looking statements are offered for the aim of presenting details about administration’s present expectations and plans referring to the longer term and permitting readers to get a greater understanding of the Company’s anticipated monetary place, outcomes of operations, and working atmosphere. Often, however not all the time, forward-looking statements could be recognized by way of phrases such as “plans”, “expects” or “doesn’t anticipate”, “is anticipated”, “funds”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “doesn’t anticipate”, or “believes”, or describes a “aim”, or variation of such phrases and phrases or state that sure actions, occasions or outcomes “could”, “may”, “would”, “would possibly” or “will” be taken, happen or be achieved.
All forward-looking statements replicate the Company’s beliefs and assumptions primarily based on data obtainable on the time the statements had been made. Actual outcomes or occasions could differ from these predicted in these forward-looking statements. All of the Company’s forward-looking statements are certified by the assumptions which are acknowledged or inherent in such forward-looking statements, together with the assumptions listed beneath. Although the Company believes that these assumptions are affordable, this record will not be exhaustive of things that will have an effect on any of the forward-looking statements. The key assumptions which have been made in reference to the forward-looking statements embrace the next: the affect of COVID-19 on the enterprise of the Company; the closing of the acquisition of Spin; the mixing of Wild Streak; the regulatory regime governing the enterprise of the Company; the operations of the Company; the services of the Company; the Company’s prospects; the expansion of Company’s enterprise, the assembly minimal itemizing necessities of Nasdaq; which might not be achieved or realized throughout the time frames acknowledged or in any respect; the mixing of know-how; and the anticipated measurement and/or income related to the gaming market globally.
Forward-looking statements contain recognized and unknown dangers, future occasions, situations, uncertainties and different elements that will trigger precise outcomes, efficiency or achievements to be materially totally different from any future outcomes, prediction, projection, forecast, efficiency or achievements expressed or implied by the forward-looking statements. Such elements embrace, amongst others, the next: dangers associated to the Company’s enterprise and monetary place; that the Company could not have the ability to precisely predict its charge of development and profitability; the dangers related to the completion of the acquisition of Spin and talent to fulfill closing situations; dangers related to the mixing of Wild Streak; dangers related to common financial situations; adversarial trade occasions; future legislative and regulatory developments; the lack to entry ample capital from inside and exterior sources; the lack to entry ample capital on favorable phrases; realization of development estimates, earnings tax and regulatory issues; the elevated prices related to assembly the minimal itemizing necessities on Nasdaq; the power of the Company to implement its enterprise methods; competitors; financial and monetary situations, together with volatility in curiosity and alternate charges, commodity and fairness costs; modifications in buyer demand; disruptions to our know-how community together with laptop techniques and software program; pure occasions such as extreme climate, fires, floods and earthquakes; and dangers associated to well being pandemics and the outbreak of communicable ailments, such as the present outbreak of COVID-19. Although the Company has tried to determine necessary elements that would trigger precise actions, occasions or outcomes to vary materially from these described in forward-looking statements, there could also be different elements that trigger actions, occasions or outcomes to not be as anticipated, estimated or meant. There could be no assurance that forward-looking statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such statements. Accordingly, readers shouldn’t place undue reliance on forward-looking statements.
The Company disclaims any intention or obligation to replace or revise any forward-looking statements whether or not as a results of new data, future occasions, or in any other case, besides in accordance with relevant securities legal guidelines.
Non-IFRS Financial Measures
Statements on this information launch make reference to “Adjusted EBITDA”, which is a non-IFRS (as outlined herein) monetary measure that the Company believes is suitable to supply significant comparability with, and to reinforce an total understanding of, the Company’s previous monetary efficiency and prospects for the longer term. The Company believes that “Adjusted EBITDA” offers helpful data to each administration and buyers by excluding particular bills and objects that administration consider should not indicative of the Company’s core working outcomes. “Adjusted EBITDA” is a monetary measure that doesn’t have a standardized that means beneath International Financial Reporting Standards (“IFRS”). As there is no such thing as a standardized methodology of calculating “Adjusted EBITDA”, it might not be instantly comparable with equally titled measures utilized by different firms. The Company considers “Adjusted EBITDA” to be a related indicator for measuring tendencies in efficiency and its skill to generate funds to service its debt and to satisfy its future working capital and capital expenditure necessities. “Adjusted EBITDA” will not be a usually accepted earnings measure and shouldn’t be thought of in isolation or as an alternative choice to web earnings (loss), money flows or different measures of efficiency ready in accordance with IFRS. Adjusted EBITA is extra totally outlined and mentioned, and reconciliation to IFRS monetary measures is offered, in Company’s Management’s Discussion and Analysis (“MD&A”) for the three- and twelve-month durations ended December 31, 2021.
About Bragg Gaming Group
Bragg Gaming Group (NASDAQ: BRAG, TSX: BRAG) is a rising international gaming know-how and content material group and proprietor of main B2B firms within the iGaming trade. Since its inception in 2018, Bragg has grown to incorporate operations throughout Europe, North America and Latin America and is increasing into a world power throughout the international on-line gaming market.
Through its wholly-owned subsidiary ORYX Gaming, Bragg delivers proprietary, unique and aggregated on line casino content material through its in-house distant video games server (RGS) and ORYX Hub distribution platform. ORYX presents a full turnkey iGaming answer, together with its Player Account Management (PAM) platform, as properly as managed operational and advertising providers.
Nevada-based Wild Streak Gaming is Bragg’s wholly owned premium US gaming content material studio. Wild Streak has a well-liked portfolio of on line casino video games which are provided throughout land-based, on-line and social on line casino operators in international markets together with the U.S. and U.Okay.
In May 2021, Bragg introduced its deliberate acquisition of Nevada-based Spin Games, B2B gaming know-how and content material supplier at present servicing the U.S. market. Spin holds licenses in key iGaming-regulated U.S. states and provides Tier 1 operators within the area. Find out extra.
Financial tables observe
BRAGG GAMING GROUP INC.
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(In 1000’s, besides per share quantities)
Three Months Ended December 31,
Year Ended December 31,
EUR 000
2021
2020
2021
2020
Revenue
15,758
13,778
58,319
46,421
Cost of income
(7,722
)
(7,748
)
(29,998
)
(26,232
)
Gross Profit
8,036
6,030
28,321
20,189
Selling, common and administrative bills
(9,899
)
(10,416
)
(34,832
)
(22,828
)
Gain on remeasurement of consideration receivable
50
37
98
19
Loss on remeasurement of deferred and contingent consideration
–
(947
)
–
(9,276
)
Loss on disposal of intangible belongings
(89
)
–
(89
)
–
Operating Loss
(1,902
)
(5,296
)
(6,502
)
(11,896
)
Net curiosity expense and different financing expenses
(52
)
(109
)
(184
)
(1,384
)
Loss Before Income Taxes
(1,954
)
(5,405
)
(6,686
)
(13,280
)
Income taxes
324
89
(826
)
(1,196
)
Net Loss from Continuing Operations
(1,630
)
(5,316
)
(7,512
)
(14,476
)
Net loss from discontinued operations after tax
–
(2
)
–
(90
)
Net Loss
(1,630
)
(5,318
)
(7,512
)
(14,566
)
Items to be reclassified to web loss:
Cumulative translation adjustment – persevering with operations
677
(129
)
2,590
157
Cumulative translation adjustment – discontinued operations
–
(80
)
–
(95
)
Items that won’t be reclassified to web loss:
Remeasurement of worker obligations
44
–
44
–
Net Comprehensive Loss
(909
)
(5,527
)
(4,878
)
(14,504
)
Basic and Diluted Loss Per Share
Continuing operations
(0.08
)
(0.52
)
(0.39
)
(1.69
)
Discontinued operations
0.00
(0.00
)
0.00
(0.01
)
(0.08
)
(0.52
)
(0.39
)
(1.70
)
Millions
Millions
Millions
Millions
Weighted common variety of shares – primary and diluted
20.0
10.3
19.5
8.6
BRAGG GAMING GROUP INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in 1000’s)
As at
As at
December 31,
December 31,
EUR 000
2021
2020
Cash and money equivalents
16,006
26,102
Trade and different receivables
8,454
10,297
Prepaid bills and different belongings
2,442
263
Consideration receivable
56
148
Total Current Assets
26,958
36,810
Property and tools
252
272
Right-of-use belongings
579
708
Consideration receivable
–
44
Intangible belongings
30,845
14,279
Goodwill
24,728
19,938
Other belongings
28
43
Total Assets
83,390
72,094
Trade payables and different liabilities
14,357
16,968
Deferred income
27
102
Income taxes payable
784
1,318
Lease obligations on proper of use belongings – present
149
133
Deferred and contingent consideration
–
11,521
Total Current Liabilities
15,317
30,042
Deferred earnings tax liabilities
1,243
1,415
Non-current lease obligations on proper of use belongings
451
593
Other non-current liabilities
184
147
Total Liabilities
17,195
32,197
Share capital
100,285
62,304
Warrants
–
1,642
Broker warrants
38
399
Shares to be issued
13,746
22,608
Contributed surplus
18,385
14,325
Deficit
(68,743
)
(61,231
)
Accumulated different complete earnings (loss)
2,484
(150
)
Total Equity
66,195
39,897
Total Liabilities and Equity
83,390
72,094
BRAGG GAMING GROUP INC.
UNAUDITED SELECTED FINANCIAL GAAP AND NON-GAAP MEASURES
(in 1000’s)
Three Months Ended December 31,
Year Ended December 31,
EUR 000
2021
2020
2021
2020
Revenue
15,758
13,778
58,319
46,421
Operating loss
(1,902
)
(5,296
)
(6,502
)
(11,896
)
EBITDA
(325
)
(4,623
)
(1,705
)
(9,023
)
Adjusted EBITDA
1,538
1,259
7,198
5,546
https://www.businesswire.com/news/home/20220310005132/en/Bragg-Gaming-Group-2021-Reports-Record-Fourth-Quarter-Results-as-Revenue-Rises-14.4
