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Bragg Gaming Group reports record revenue growth
Bragg Gaming Group has released its financial results for the second quarter of 2019, reporting record revenue growth year-over-year.
Bragg also announced that it is launching a review to evaluate strategic alternatives for its GiveMeSport and GiveMeBet assets, including a possible sale, as part of its effort to focus the business on maximising revenue and cash flow generation through B2B licensing deals, ORYX Hub and aggregated gaming content.
Q2-2019 was the second full quarter for Bragg, and the company demonstrated continued growth with CDN $8.8M in revenue, gross profit of CDN $3.8M, EBITDA loss of CDN $0.3M, and net loss from continuing operations of CDN $6.4M. These results culminated in performance in H1-2019 of revenue of CDN $18.0M, gross profit of CDN $8.2M, EBITDA of CDN $0.4M and net loss from continuing operations of CDN $9.4M.
In the first half of 2019, Bragg subsidiary ORYX Gaming launched a record 22 new operators and built a strong pipeline for H2 2019. The year-on-year strong revenue growth ORYX achieved in Q1 of this year extended into Q2, leading to an aggregate 48% revenue growth in the H1 of 2019 compared to H1 2018.
Dominic Mansour, chief executive of Bragg, said: “ORYX had another strong quarter. In addition to the record number of operators integrated in the first half, we signed agreements with Red Tiger, Stakelogic, Betsson, and Casumo whose extensive portfolio of games are now fully integrated into the ORYX Hub platform.
“We continue to engage with highly innovative and best-of-breed partners to supplement our broad content base and further improve our user-experience.”
Providing an update on current trading, Mansour added: “Performance since the end of June has been ahead of our expectations, with monthly operator GGR on the casino aggregator platform 6% ahead of the 3-month daily average, despite the typical slow-down during the summer months.”
GiveMeSport (GMS), Bragg’s sport media outlet, recently announced an exciting re-launch of its web platform, encompassing an entirely new digital strategy with enhanced content and optimised site navigation.
In H1 2019, GMS reached 232 million unique Facebook users, Facebook video views and video interactions increased 186% and 294% compared to H1 2018, respectively, and Instagram followers increased 53% compared to H1 2018. Total reach across all platforms has grown rapidly; In June 2019, GMS reached 160 million users, compared to 29 million in January 2019. In addition, GMS recently launched GiveMeSport Women, initiating in-depth coverage on women’s sports in response to growing demand in this area.
Mansour said: “I am very pleased with Bragg’s progress this quarter. During the six months since Bragg’s inception, we have acted on several strategic initiatives that have helped us transform into a global gaming company. This quarter, we focused on investing in the business in order to expand our footprint and accelerate future growth.
“We launched ORYX Hub, a new platform that is a one-stop-shop for quality casino content, sportsbook, and lottery products. The strategic rationale behind this and other investments demonstrates our dedication to market and platform expansion. I am confident that we are taking the right steps to diversify and grow our business and that our recent activities will strengthen our position in the rapidly growing gaming market.”
Bragg has made extensive progress implementing key changes to its Online Media Division, which were the legacy businesses of Breaking Data acquired as a part of the acquisition in December 2018. Having received expressions of interest from various parties, the Board has determined that its GiveMeSport (GMS) and GiveMeBet (GMB) assets are in a strong position for a strategic review. Bragg has enlisted Sequence Advisers LLP to provide guidance as the company undergoes the review process.
“This review of strategic alternatives for GMS and GMB is a prime example of how we are exploring all available options to position Bragg for long-term success. Demonstrated by the impressive user statistics, we’ve taken bold actions and made fundamental changes that have resulted in a far stronger, more capable GMS and GMB.
“Looking ahead, we are laser focused on growing our B2B gaming solutions and plan to extend ORYX’s reach both organically and through future acquisitions and strategic partnerships. We have been strategically investing in our platform and services and expect increased adoption in existing markets as well as penetration into new markets, particularly the US.”