Bragg Gaming Group Reports Second Quarter 2019 Results and Announces Strategic Review of Online Media Division
Investments in Platform Enhancements and Geographic Expansion in order to Accelerate Growth
TORONTO, August 27, 2019. Bragg Gaming Group (TSXV: BRAG, OTC: BRGGF) (Bragg) released its results for the Q2-2019, achieving record revenue growth year-over-year. The Company 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 maximizing revenue and cash flow generation through B2B licensing deals, ORYX Hub and aggregated gaming content.
Second Quarter 2019 Results
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.
ORYX Gaming launched a record number of new operators in H1 2019, launching 22 operators and building 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. “ORYX had another strong quarter,” noted Mansour. “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, 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 optimized site navigation. “We have continued to execute on the new content-first strategy. With the new platform, we’ve improved the user experience significantly, and our GMS users have responded positively to the changes implemented over the past few months,” noted Mansour. 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.
“I am very pleased with Bragg’s progress this quarter,” stated Dominic Mansour, CEO of Bragg. “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,” said Mansour. “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.”
Dominic Mansour concluded, “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.”
About Bragg Gaming Group
Bragg Gaming Group (TSXV: BRAG, OTC: BRGGF) is a next generation gaming group with cutting-edge technology, leading brands and world-class management expertise, developing into a global gaming force. Formed by a team of gaming industry experts, Bragg’s portfolio includes ORYX Gaming, an innovative B2B gaming technology platform and casino content aggregator, and GiveMeSport, a top sports media outlet and with over 26M fans, the number one Facebook Sport Publisher. Through these brands, Bragg is focused on becoming a leader within the evolving global gaming industry. Learn more at https://www.bragg.games.
For Bragg Gaming Group, contact:
Dominic Mansour, CEO
Akshay Kumar, CFO
via Thirty Dash Communications
For media enquiries or interviews, please contact:
Wynn Theriault, Thirty Dash Communications
For investor inquiries, please contact:
Tim Dawson, Bragg Gaming Group
For US investor inquiries, please contact:
Joe Green/Laine Yonker, Edison Group
 All results presented are those from continuing operations except where explicitly stated. EBITDA is a company-specific non-GAAP non-IFRS financial measure. A reconciliation to Net loss is provided in the ‘Management Discussion and Analysis for the three-month and six-month period ended June 30, 2019.’