Canada
BRAGG GAMING GROUP 2021 REPORTS RECORD FOURTH QUARTER RESULTS AS REVENUE RISES 14.4%
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
|
Q4-21 |
Q4-20 |
Change |
|
|
Revenue |
âŹ15.8 |
âŹ13.8  |
14.4% |
|
Gross profit |
âŹ8.0 |
âŹ6.0 |
33.3% |
|
Gross profit margin |
51.0% |
43.8% |
720bps |
|
Adjusted EBITDA |
âŹ1.5 |
âŹ1.3 |
22.2% |
|
Adjusted EBITDA margin |
9.8% |
9.1% |
70bps |
|
Wagering revenue |
âŹ3.1B |
âŹ3.4B |
-8.4% |
|
Euros |
FY-21 |
FY-20 |
Change |
|
Revenue |
⏠58.3 |
⏠46.4 |
25.6% |
|
Adjusted EBITDA |
âŹ7.2 |
âŹ5.5 |
29.8% |
|
Wagering revenue |
âŹ14.3B |
âŹ11.8B |
21.1% |
Â
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.
“Fourth quarter revenue of EUR âŹ15.8 million (USD $17.5 million) and Adjusted EBITDA of EUR âŹ1.5 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 âŹ58.3 million (USD $64.7 million) and EUR âŹ7.2 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 âŹ68-72 million (USD $76-80 million) and Adjusted EBITDA of EUR âŹ9.5-10.5 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 âŹ15.8 million (USD $17.5 million) in Q4 2021 compared to EUR âŹ13.8 million (USD $15.3 million) in Q4 2020.Â
- Wagering revenue generated by customers decreased 8.8% to EUR âŹ3.1 billion (USD $3.4 billion) compared to EUR âŹ3.4 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 âŹ8.0 million (USD $8.9 million) from EUR âŹ6.0 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 âŹ1.6 million (USD $1.8 million), a decline from a net loss of EUR âŹ5.3 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 âŹ1.5 million (USD $1.7 million), an increase of 22.2% compared to EUR âŹ1.3 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 âŹ16.0 million (USD $17.8 million).
2021 Full Year Financial Results and other Key Metrics Highlights
- Revenue increased by 25.6% to EUR âŹ58.3 million (USD $64.7 million) for 2021 compared to EUR âŹ46.4 million (USD $51.5 million) in 2020.Â
- Wagering revenue generated by customers increased 21.1% to EUR âŹ14.3 billion (USD $15.9 billion) compared to EUR âŹ11.8billion (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 âŹ28.3million (USD $31.4 million) from EUR âŹ20.2million (USD $22.4 million) in 2020, reflecting a 510 basis point margin improvement to 48.6%.
- Net loss for the period was EUR âŹ7.5 million (USD $8.3 million), an improvement from the net loss of EUR âŹ14.6 million (USD $16.2 million) in 2020.
- Adjusted EBITDA was EUR âŹ7.2 million (USD $8.0 million), an increase of 29.8% compared to EUR âŹ5.5 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 âŹ68-72 million (USD $76-80 million) and Adjusted EBITDA of EUR âŹ9.5-10.5 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.
ToonieBet, Soft2Betâs flagship online casino and sportsbook for Ontario, has officially launched its sportsbook on the Apple App Store and Google Play Store. The platform is tailored specifically for local players, offering a dynamic betting experience with a broad range of sports events and competitive odds. The platform also features personalised promotions and loyalty rewards designed to match the preferences of Ontarioâs diverse betting community.
The sportsbook uses official data feeds, ensuring players have access to the most accurate and up-to-date information on top local and international sports events. Additionally, the platform offers live broadcasting with real-time match analytics, allowing users to make informed betting decisions as events unfold. Integrated with MEGA and advanced player account management features, the operator is committed to delivering a seamless and responsible gaming environment that enhances the overall player experience while supporting local sports initiatives.
As part of this launch, the platform has also introduced a Sportsbook section on its official website, expanding its portfolio and bringing more choice to its growing customer base. With access to over 85,000 live events each month and more than 70,000 pre-match events across a wide range of sports, players now have even more ways to bet on what they love. Soft2Betâs Canadian brand invites all players to explore its standout online casino and the full spectrum of sports betting, all delivered through a fast, secure, and fully localised platform.
âSince its debut at the end of 2024, ToonieBet has offered a fast, fair, and secure online casino and sportsbook experience, fully localised for Ontarioâs vibrant gaming market. The Apple App and Google Play additions further enhance accessibility, bringing ToonieBetâs premium entertainment to players on the go.
Additionally, this milestone complements the operator’s recent partnership with the NHLâs Ottawa Senators, which made ToonieBet the Official Online Casino Partner of the team. The partnership includes in-arena branding, digital promotions, and fan engagement initiatives like social contests, allowing ToonieBet to connect with Ontario sports fans in exciting ways and offering chances to win team merchandise and tickets.
Yoel Zuckerberg, Soft2Betâs Chief Product Officer, said: âAs Soft2Bet continues our rapid growth, we are excited to provide Ontario players with access to ToonieBetâs sportsbook which is now available on the Apple App and Google Play Store, offering seamless access to a customised experience tailored for the provinceâs passionate gaming community.â
Stats Perform, the global leader in sports AI, data and technology, has announced an official data partnership with the Northern Super League (NSL). The partnership will allow world-leading Opta data to be collected live from every NSL league game for the next three years.
Beginning this month, the Northern Super League (NSL) establishes a new era in Canadian sport as the countryâs first professional domestic womenâs soccer league â an ambitious and transformative initiative co-founded by former Canadian international and Olympic medallist Diana Matheson. Its inaugural season kicks off on April 16 and will feature six teams who have assembled multinational player rosters with extensive club and international experience, including 100-cap Canadian internationals Desiree Scott and Quinn.
Once the action begins, detailed data from every on-ball event, including advanced AI-powered Opta Analytics metrics such as Expected Goals (xG) and Expected Assists (xA), will be captured and distributed via feeds and Stats Perform products, including OptaAI Studio. This will enable various broadcasters, publishers and rights holders to generate stories and insights throughout the NSL season and provide them straight to the leagueâs fans in real time.
As part of the agreement, the NSLâs League Office and every NSL club will also have access to Opta Search, part of OptaAI Studio. This will allow their content creators to leverage all Opta data collected during the NSL season in the creation of data-led stories on the stand-out performers, and will help them generate key talking points for publication on official league and club platforms. Opta Search will also empower the NSLâs media team to create a range of data visualizations, including player shot maps and touch maps, to visually illustrate the impact of different playersâ on-field performances.
Christina Litz, NSL President, said: âWe are thrilled to have Stats Perform on board as our official data partner. When we talk about detailed performance data in soccer, Opta is the gold standard, so we are delighted to have it powering each of our official digital channels. As the season progresses, we want to put the spotlight on all the on-field heroes who emerge and having access to world-class data will help us tell their stories and inspire a new generation of Canadian soccer fans.â
Steve Xeller, Chief Revenue Officer at Stats Perform, said: âStats Perform has been a huge supporter of expansion leagues around the world, so we are very pleased to be partnering with NSL in the lead-up to their first domestic campaign. Seeing a fully professional womenâs soccer league launch in Canada is an incredibly exciting development for the sport in North America and we see considerable potential in working proactively with the Leagueâs Head Office to help the competition grow, using the power of AI and data-led storytelling to build fan communities across the continent.â
With the Ottawa Senators securing a playoff spot in the NHL, ToonieBet will be there every step of the way, engaging fans with exclusive giveaways, premium entertainment, and a casino experience that mirrors the teamâs energy and excitement.
The Ottawa Senators and Tooniebet, an online casino for players across Ontario, announced a partnership that will make Tooniebet the NHL teamâs Official Online Casino Partner.
Tooniebet, which launched in 2024 is part of Soft2Bet – one of the worldâs fastest growing iGaming turnkey solutions providers with iGaming brands around the world with a portfolio of 19 global licenses, including Ontario.
Additional highlights of the Ottawa Senators and TonnieBet partnership will include:
- In-Arena & Broadcast Branding: Digitally enhanced dashboards for home and away games
- In-rink board signage for home games
- Virtual slot signage for various games
- Digital inventory throughout the Ottawa Senators site on NHL.com
- Direct Fan Engagement: Social contests and promotions hosted on Senatorsâ digital platforms
- Television Broadcast Branding: Digitally enhanced rink boards for home and away games
- In-arena rink board signage for home games
Martin Ballard, VP Corporate Partnerships, Ottawa Senators stated:Â âWe are thrilled to welcome ToonieBet as an official partner of the Ottawa Senators. Cooperating with a brand that shares our commitment to providing fans with an exceptional and trusted experience is incredibly exciting. Together, we look forward to delivering memorable moments and engaging our passionate fanbase in new and innovative ways.â
Oksana Tsyhankova, Chief Marketing Officer at Soft2Bet, commented:Â “Partnering Soft2Betâs ToonieBet brand with the Ottawa Senators is a significant milestone that reinforces our strong brand presence in Ontario. In a short period, we have achieved impressive performance and retention results, with a primary focus on localised, engaging experiences for Canadian players, which makes ToonieBet truly set itself apart.”
By tapping into the Senatorsâ digital platforms and in-arena presence, ToonieBet will stay close to the action and connect with fans in real, engaging ways while continuing to offer a top-quality online casino experience.
ToonieBet offers a fast, localised online casino experience for players in Ottawa and across Ontario. Through this partnership, fans will have the chance to win Senators merchandise and tickets while ToonieBet grows its presence in a competitive Ontario market. With in-arena branding, regional broadcast coverage, and digital promotions, ToonieBet will be highly visible to the teamâs loyal supporters.
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