Canada
Bragg Gaming Group Announces Record Fourth Quarter and Full Year 2020 Results
Full year revenue up 74.6% year over year; a 58.4% CAGR since FY 2018
Fourth quarter revenue up 75.7% from the comparable period in the previous year
B2B gaming platform technology provider Bragg Gaming Group today released its annual financial results for the three months and year ended Dec 31, 2020.
“We’ve made extraordinary progress in 2020 and are very pleased with the substantial revenue and EBITDA growth that we’ve delivered,” said Adam Arviv, Interim Chief Executive Officer of Bragg. “We continue to expand globally, enhancing our content portfolio and technology offering, and securing new customers across key geographies.”
“We’re particularly pleased with the overall performance of Bragg during 2020 and believe we have built strong foundations to support future market share gains and new market entry,” said Richard Carter, Chair of the Board at Bragg. “Adam and I have taken active leadership roles within Bragg to ensure the future success of the Company. We’re aligned in our strategy to grow the group’s underling operating profit margin and to expand rapidly into new markets, particularly the burgeoning U.S. market. Our extensive experience and wide-ranging industry networks within this constantly expanding market will add significant value for Bragg shareholders. We are now extremely well-positioned to capitalise on the strong growth in the online gaming sector globally.”
FY 2020 financial highlights
- Revenue[1] increased by 74.6% in 2020, up to €46.4M (C$68.7M[2]), as compared to €26.6M (C$39.3M) for full year 2019, representing a yearly 58.4% CAGR since FY 2018
- Wagering revenue generated by customers increased by 73.5% to €11.8B (C$17.5B) as compared to €6.8B (C$10.1B) during full year 2019.
- Adjusted EBITDA[3] increased by 432.8%, up to €5.5M (C$8.2M) from €1.0M (C$1.5M) the previous year, with margins increasing significantly from 3.9% to 11.9%, achieved by reaching higher scale and practising firm cost control.
- Net loss for the period was €14.6M (C$21.6M) compared to a net loss of €11.9M (C$17.7M) in the comparable period, due primarily to the re-measurement of deferred and contingent consideration and the accretion of liabilities for the ORYX earn-out.
- Cash and cash equivalents as of December 31, 2020 amounted to €26.1M (C$38.6M) compared to €0.7M (C$1.0M) on December 31, 2019.
Q4 2020 financial highlights
- Revenue increased by 75.7% to €13.8M (C$20.4M), compared to €7.8M (C$11.6M) for the fourth quarter of 2019, representing a quarterly growth of 12.4% CAGR since Q1 2019
- Quarter over quarter revenue increase of 18%, from €11.7M (C$17.3M) in the third quarter to €13.8M (C$20.4M) in the fourth quarter.
- Wagering revenue generated by customers up by 50.1% to €3.2B (C$4.7B) compared to €2.1B (C$3.2B) in the fourth quarter of 2019.
- Increase of 70.1% in unique players[4] using Bragg games and content, up to 2.50M from 1.47M during the comparable quarter in 2019.
- Adjusted EBITDA was €1.3M (C$1.9M), up 70.8% compared to €0.7M (C$1.1M), with a decrease in margins from 9.4% to 9.1%, primarily as a result of professional fees and corporate costs incurred through up-listing from the TSX-Venture Exchange to the Toronto Stock Exchange.
- Net loss for the period was €5.3M (C$7.9M), in line with Q4 2019 results of €5.3M(C$7.9M).
Selected fourth quarter and full year key performance indicators
| Euros (Thousands) | Q4-20 | Q4-19 | % | FY 2020 | FY 2019 | % |
| Revenue | 13,778 | 7,841 | 75.7% | 46,421 | 26,592 | 74.6% |
| Adjusted EBITDA | 1,259 | 737 | 70.8% | 5,546 | 1,041 | 432.8% |
| Adjusted EBITDA margin | 9.1% | 9.4% | -0.3% | 11.9% | 3.9% | 205.2% |
| Operational | Q4-20 | Q4-19 | % | FY 2020 | FY 2019 | % |
| Wagering revenue | 3.2B | 2.1B | 50.1% | 11.8B | 6.8B | 73.5% |
| Unique players | 2.50M | 1.47M | 70.1% | 5.87M | 2.75M | 113.6% |
| Revenue/ top 10 customers | 66% | 67% | -1.6% | 58% | 72% | -18.8% |
Business highlights
- Successful launch of 54 B2B operators[5] during the period, across a number of global jurisdictions, including 21 operators during the fourth quarter
- Improved Customers[6] revenue diversification, with 58% of revenue derived from the top 10 customers, as compared to 72% in 2019
- Launched new exclusive content and completed the integration of key leading studios such as Peter & Sons, CandleBets and Arcadem
- Expanded its geographic presence, with entry into a number of new global markets, including Switzerland, Bulgaria, Portugal, Latvia, Czech Republic and Spain
- In January 2021, secured a joint venture Agreement with JVH gaming & entertainment group, the largest land-based casino in the Netherlands (JVH group) for iGaming platform (PAM) and turnkey services
- In January 2021, the Company completed a private placement for €1.9M (C$3.0M), which included participation from the board of directors and management
- In January 2021, the Company’s common shares and outstanding warrants began trading on the Toronto Stock Exchange senior market
- In February 2021, Bragg announced the acceleration of its investment in the US and Canadian markets
- The Bragg board of directors was augmented with the addition of prominent business leader Paul Godfrey in January 2021and high-profile gaming industry veteran Lara Falzon in March 2021
Ongoing strategy
- Bragg recently announced the appointment of high-profile gaming industry executive Richard Carter to the role of CEO, effective May 1, 2021
- Bragg is also in the process of signing on an experienced management team to work with Mr. Carter, extending the Company’s already sizeable competitive advantage in the global gaming industry
- Bragg continues to focus on expanding its global footprint, particularly in the burgeoning U.S. gaming market, where the total addressable market (TAM) for iGaming is anticipated to be greater than 40B at 100 per cent legalisation, the TAM for sports betting is expected to grow to more than $22B once gaming is legalised in all states
- Bragg will also target Canada, where the TAM for both sports betting and iGaming is projected to be $5-8B upon full legalisation
- Bragg continues to invest in its technical infrastructure, in increasing operational efficiencies, and in deepening its data analytics, gamification and bonuses features
- Bragg continues to explore strategic M&A opportunities in the U.S. and globally
Canada
Suspected Digital Fraud Coming from Canada Up Nearly 11% Since H1 2023, Reveals New TransUnion Analysis
In the first half (H1) of 2024, Canada saw a significant increase in suspected Digital Fraud attempts, with nearly 5.74% of all attempted digital transactions where the consumer was located in Canada involving suspected Digital Fraud, revealed a new TransUnion® (NYSE: TRU) analysis. This is nearly an 11% year-over-year (YoY) rate increase from H1 2023, and TransUnion also documented an 11% increase in the volume of suspected Digital Fraud from Canada during this period, despite a less than a one percent (0.7%) YoY increase in the volume of transactions.
According to a recent TransUnion survey,1 more than half (54%) of Canadians said they were recently targeted by email, phone call or text message fraud attempts. Phishing was the most common scheme type (45%), followed by smishing (42%) and vishing (39%).
The increasing use of digital transactions, combined with rising suspected Digital Fraud attempts are also impacting businesses as they potentially face revenue losses and increased operational costs due to fraud. According to a TransUnion business survey for the H2 2024 Update to the State of Omnichannel Fraud report, 200 Canadian business leaders said their companies lost approximately 6% of equivalent revenue – representing $78 billion – over the past year due to fraud. The most prominent causes of fraud loss cited by them were:
- Scam/Authorized fraud (31%): Dishonest scheme intended to trick a person into giving up something of value (e.g., account access, money, information)
- Account takeover (19%): Unauthorized individuals taking over someone’s online account (e.g., bank, social media, email) without their permission
- Synthetic identity fraud (18%): Use of a combination of personal information to fabricate a person or entity to commit a dishonest act for financial or personal gain
TransUnion also found that suspected Digital Fraud attempts – where the consumer was transacting in Canada and targeted businesses globally – increased on average by 10.5% YoY in H1 2024 compared to H1 2023 and impacted all industries.
Top Three Industries Globally with Highest Rate of Suspected Digital Fraud Attempts Coming from Canada in H1 2024
- Gambling (online sports betting, poker, etc.) – 9.6%
- Retail – 9.2%
- Government – 7.7%
Top Three Industries Globally with Highest YoY Increase (H1 2024 vs H1 2023) in the Rate of Suspected Digital Fraud Attempts Coming from Canada
- Logistics – 172.9%
- Gambling – 79.3%
- Video gaming – 67.8%
“Protecting customers and their businesses from fraud is essential to enabling safe and tailored consumer experiences. These findings reveal that despite the good-faith efforts that are being undertaken by companies to identify and prevent fraud to date, fraudsters continue to evolve and it’s vital that fraud prevention methods keep up with the changing times,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.
“Businesses that aren’t already doing so should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” he added.
CPL first to benefit from CA$300,000 education fund commitment by IBIA’s regulated sports betting operators
Canadian Premier League (CPL) soccer teams have successfully completed a sports betting integrity player education program. Designed by the International Betting Integrity Association (IBIA) using its 3R’s training model, the program has utilised a combination of dedicated in-person training and online resources, with sessions delivered by the Professional Footballers’ Association Canada (PFA Canada) through its Protecting the Integrity of the Game workshops.
In total, nearly 200 players have been trained by the IBIA/PFA Canada partnership at all eight CPL teams through the program, which started in Ontario and finished in Alberta, also covering teams in Nova Scotia, Manitoba and British Colombia. It concludes the first part of a two-year player education agreement between IBIA and PFA Canada.
Marco Carducci, Cavalry FC & President of PFA Canada, said: “The IBIA sports betting integrity training, in partnership with PFA Canada, was an incredibly beneficial experience for our players. Effective and easy-to-understand, it made clear what professional athletes need to know about sports betting integrity and how to report attempted corruption. We are grateful for IBIA’s support to help safeguard the integrity of the game and to protect and educate our players.”
In addition to highlighting the potential threats from sports betting related match-fixing, the program educated players on rules and sanctions, the scale and accuracy of technology enabled sports integrity monitoring, and how to report criminals and corrupters using the red button app.
Khalid Ali, CEO of IBIA said: “We take our responsibility to protect regulated sports betting markets, sports and athletes seriously. Decades of experience has shown that a combination of efficient regulation, education and collaboration are essential to safeguarding the sports integrity ecosystem. We are delighted that the PFA Canada education program has been so successful and look forward to year two of the project.”
Dan Kruk, Executive Director, PFA Canada, said: “Through our work with IBIA, nearly 200 Canadian Premier League players attended PFA Canada’s Protecting the Integrity of the Game workshop this season. As a result, stakeholders can be confident our members know their obligations regarding gambling and match-fixing in their sport, how to recognize an approach to fix a match, and crucially, their duty to report any person attempting to manipulate a match.”
The program is the first to be delivered from a CA$300,000 three-year fund – invested by IBIA and its members bet365, Betway and FanDuel – from which Canadian sports and athletes can receive free face-to-face integrity education designed to protect Canadian sports from the potential threat of match manipulation and corruption.
CasinoCanada, the number one gambling guide for players in Canada, is thrilled to announce its new partnership with RoyalGame, a brand under the umbrella of Gloss Partners.
This collaboration marks an exciting step in CasinoCanada’s mission to provide its audience with the most comprehensive and up-to-date information on top gaming experiences.
The partnership agreement will grant RoyalGame premium visibility across high-traffic sections of CasinoCanada’s website, which has been a trusted source for Canadian players for over 20 years.
RoyalGame presents itself as a revolutionary vision of a modern online casino that perfectly matches casual gaming with a betting experience through the joyful king on his around-the-world adventure and visits legendary casinos and gambling palaces across the globe. This brand is full of a captivating narrative and gaming mechanics that add extra fun and increase engagement rate. Users play casino games and collect special in-game points that can be redeemed to unlock various locations and acquire bonuses, cash, and daily rewards.
GlossPartners offers competitive rates of up to 60% commission. Our plans provide various options, including Revenue Share, CPA, and hybrid deals.
As Gloss Partners claims, they aim for partnerships where each affiliate benefits and thrives, so they assign dedicated Affiliate Managers to our partners, guiding them through every step. Prioritization of transparency and detailed statistics to allow affiliates and players to monitor everything, high conversion and retention rates, flexible commission plans, and tailored offers are designed to meet the high-demanded audience and everyone`s specific needs.
“We are glad to meet our new partner RoyalGame, and looking forward to bringing the maximum of use and value to our community,” – said Aleksandra Drigo, Sales Director at CasinoCanada. “This partnership perfectly reflects our dedication to highlighting the best in the gaming industry while offering our audience valuable insights and chances to experience top-notch gaming. We hope for a productive and long-term partnership!”
“Partnering with CasinoCanada is an excellent opportunity for us. We are full of hopes this collaboration will enhance the visibility of our brand and offer Canadian players premium access to the best conditions in gambling,” – said Alex Simonov, Head of Affiliates a Gloss Partners.
The partnership is now live, featuring RoyalGame reviews and exclusive offers on the CasinoCanada website. This collaboration is set to deliver even more thrilling updates, exclusive content, and personalized promotions for the Canadian gambling community.
-
Interviews7 days agoAxel Antillon: Our Peru entry is a major milestone for WA.Technology
-
Compliance Updates6 days agoGiG grows regulated market footprint with new B2B supplier authorisation for Peru
-
Latest News5 days agoHarrah’s Cherokee Valley River’s New Hotel Tower Nears Completion
-
Latest News6 days agoPatrick Homm to Lead Scientific Games International Lottery Systems Technology
-
Latest News6 days agoLottery Courier Jackpot.com Launches Digital “Scratchers”
-
Latest News2 days agoLos Angeles Rams launch Next Gen Stats-powered, in-stadium highlights through new collaboration with Genius Sports
-
Latest News6 days agoDiffusionData Appoints Raphael Vergnaud as CRO
-
Press Releases6 days agoSpintec Introduces a Host of New Products at G2E