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BRAGG GAMING GROUP 2021 REPORTS RECORD FOURTH QUARTER RESULTS AS REVENUE RISES 14.4%

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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

Euros (millions)

Q4-21

Q4-20

Change

Revenue

€15.8

€13.8

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14.4%

Gross profit

€8.0

€6.0

33.3%

Gross profit margin

51.0%

43.8%

720bps

Adjusted EBITDA

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€1.5

€1.3

22.2%

Adjusted EBITDA margin

9.8%

9.1%

70bps

Wagering revenue

€3.1B

€3.4B

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-8.4%

Euros

FY-21

FY-20

Change

Revenue

€ 58.3

€ 46.4

25.6%

Adjusted EBITDA

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€7.2

€5.5

29.8%

Wagering revenue

€14.3B

€11.8B

21.1%

 

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.

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“Fourth quarter revenue of EUR €15.8 million (USD $17.5 million) and Adjusted EBITDA of EUR €1.5 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 €58.3 million (USD $64.7 million) and EUR €7.2 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 €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 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 €15.8 million (USD $17.5 million) in Q4 2021 compared to EUR €13.8 million (USD $15.3 million) in Q4 2020. 
  • Wagering revenue generated by customers decreased 8.8% to EUR €3.1 billion (USD $3.4 billion) compared to EUR €3.4 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 €8.0 million (USD $8.9 million) from EUR €6.0 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 €1.6 million (USD $1.8 million), a decline from a net loss of EUR €5.3 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 €1.5 million (USD $1.7 million), an increase of 22.2% compared to EUR €1.3 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 €16.0 million (USD $17.8 million).

2021 Full Year Financial Results and other Key Metrics Highlights

  • Revenue increased by 25.6% to EUR €58.3 million (USD $64.7 million) for 2021 compared to EUR €46.4 million (USD $51.5 million) in 2020. 
  • Wagering revenue generated by customers increased 21.1% to EUR €14.3 billion (USD $15.9 billion) compared to EUR €11.8billion (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 €28.3million (USD $31.4 million) from EUR €20.2million (USD $22.4 million) in 2020, reflecting a 510 basis point margin improvement to 48.6%.
  • Net loss for the period was EUR €7.5 million (USD $8.3 million), an improvement from the net loss of EUR €14.6 million (USD $16.2 million) in 2020.
  • Adjusted EBITDA was EUR €7.2 million (USD $8.0 million), an increase of 29.8% compared to EUR €5.5 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 €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 revenue and Adjusted EBITDA guidance ranges represent growth of 20% and 39%, respectively, over the reported  full year 2021 revenue and Adjusted EBITDA.

Canada

BCLC Launches “What’s played here stays here” Campaign

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BCLC Launches “What’s played here stays here” Campaign

 

BCLC’s new “What’s played here stays here” campaign is issuing an important reminder to British Columbians who choose to gamble – specifically that all net profit its operations generate stays in B.C. to help fund critical services like education, health care and community programs.

The campaign also reinforces that all other gambling websites operating in B.C. are illegal and take away funds from critical community programs and services.

“Across B.C. and Canada, we’ve seen incredible groundswell around the importance of buying and supporting local, and that’s no different for British Columbians who choose gambling for their entertainment. We want our B.C. players to know they can find a world-class gambling experience in their own backyard, whether it’s at one of our 33 casinos, 3,400 lottery retailers, or online at PlayNow.com, and that the proceeds from their play with BCLC make a positive impact at home in their community,” Pat Davis, President and CEO of BCLC, said.

Along with illegal online gambling websites, BCLC also competes with Washington State and Las Vegas casinos, all of which aggressively market to B.C. residents.

“BCLC continues to raise awareness that these gambling options do not support B.C.’s economy and take away funds from vital provincial and community-based programs and services. In a time when British Columbians are standing united, we want to reinforce that playing together with BCLC helps make B.C. even better,” Pat Davis added.

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Online casino with a Nordic twist enters yet another market as it continues to deploy its ambitious international expansion plans

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Winlandia.com, the online casino brand with a distinctly Nordic feel, has made its debut in Canada as it continues to expand its reach into international markets.

Winlandia is celebrating ten years of Nordic excellence and is now available for Canadian players, with its website available in both English and French.

Canadian players will get a real sense of Finnish Sisu when they sign up to Winlandia for the first time with a generous welcome bonus that is up for grabs.

When it comes to depositing, Winlandia has a well-stocked cashier including Visa, Mastercard, MuchBetter, Paysafecard, Payz, AstroPay and of course, Interac.

Players can expect instant deposits and fast withdrawals, so they get their winnings without delay.

The cool Nordic vibes extend to the online casino lobby where players can explore a vast portfolio of more than 9,000 slot, table, instant win, bingo, Slingo, arcade and live dealer titles.

Just some of the providers available include Pragmatic Play, NetEnt, Microgaming, Red Tiger, Play’n GO, Blueprint Gaming, IGT, Scientific Games, Nolimit City and Evolution Gaming.

Winlandia players will be able to benefit from its Personalization Platform that was implemented at the beginning of last year. This means players will get individual game recommendations based on real-time data, a bit like Netflix but for casino games, not movies.

Canadian players can also enjoy some of the most generous promotions in the market, including Daily Picks which sees free spins and other bonuses added to their account each day.

They can also take part in thrilling slot tournaments and go head-to-head with other players and where if they place high on the leaderboard, there are big prizes to be won.

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Winlandia is powered by SkillOnNet and has quickly emerged as a top online casino brand in competitive markets such as Finland, Denmark and the UK.

The team behind the site is confident that Canadian players will be drawn to its comprehensive offering and unique Nordic flavour.

Winlandia has extended its collaboration with its premium affiliate partner, Gambling.com, as their exclusive launch partner for the Canadian market. Via their site assets like Gambling.com/ca, players will get an exclusive offer of 100% up to $5,000 + 150 Free spins on Big Bass Bonanza.

Christoffer GrönlundHead of Acquisitions & PR at Winlandia, said: “Players in Canada can now enjoy an authentic Nordic online casino experience that includes thousands of casino games from the biggest providers offered alongside generous bonuses and promotions. 

“Despite being an international brand, localisation is very important to us and that’s why we implemented the payment method Interac to our cashier and ensure we have the most popular game providers for the Canadian market in our game lobby. 

“Canada is a big market and one that we are incredibly excited to enter this market together with our Premium Affiliate Partner Gambling.com/ca. We truly believe that their high volume of quality traffic of players will enjoy what we have to offer at Winlandia.” 

Gary Connolly, Senior Key Account Manager at Gambling.com Group, added: “I’m excited to welcome Winlandia Casino  as they prepare for their Canadian launch. 

“With 10 years of Nordic excellence and trust, a standout design, and an impressive portfolio of over 9,000+ games, Winlandia is well-positioned for success in this market. Following strong results in the UK, I look forward to a successful partnership in Canada, where their fresh player base offers great conversion potential.”

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GiG Launches Fourth Partner into Ontario as PowerPlay Enhances Its Gaming Experience with GiG’s Formidable Combination of Proprietary Platform, Sportsbook and AI technology

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GiG Launches Fourth Partner into Ontario as PowerPlay Enhances Its Gaming Experience with GiG’s Formidable Combination of Proprietary Platform, Sportsbook and AI technology

 

Gaming Innovation Group (GiG Software Plc) has announced a major new partnership with PowerPlay Online Casino & Sportsbook,  with the brand now live having migrated to a premium technology supplier to propel growth in the regulated Canadian province of Ontario. The launch marks the fourth brand now active in the region powered by GiG’s cutting-edge iGaming technology, and further positioning GiG as a provider of choice for operators in regulated online markets in Canada, with Alberta next due in line once legislation passes.

GiG has established itself as one of the premier technology providers in Ontario, and PowerPlay will look to leverage a proven and powerful combination of GiG’s proprietary technology. The launch includes GiG’s award winning iGaming platform alongside a suite of next generation solutions, its feature packed Sportsbook, SportX, revolutionary rules based engine, LogicX and GiG’s innovative CMS.

PowerPlay has built a strong Canadian legacy, and its dedication to reliability and customer satisfaction has cemented its position as a trusted operator, ensuring players enjoy a world-class, secure, and seamless gaming experience.  Now, with the migration to GiG’s cutting-edge technology, PowerPlay is poised to enhance its offerings even further.

With a growing emphasis on cutting-edge artificial intelligence and automation, PowerPlay can also now call on the full power of dynamic AI tools DataX and LogicX, with the incorporation of advanced machine learning models into their toolkit, enhancing decision-making processes and rule building helping to deliver significant increases in player acquisition and customer retention. Innovative sportsbook SportX will boost PowerPlay’s offering by providing advanced bet-builder capabilities, dynamic odds, and a comprehensive suite of localised features, including horse racing and virtual sports betting.

The launch carries significance as further evidence of GiG’s accelerated delivery cadence, as the fourth publicly announced partner launch this year. GiG has implemented a suite of strategic improvements over the past year, and is set to further escalate launches throughout 2025, reinforcing its commitment to seamless execution and growth.

GiG’s has been one of the forerunners of regulated market expansion in iGaming for over 10 years, facilitating smooth market entries in complex regulated environments not only in North America, but across key markets in Europe, Latin America and now the Philippines in Asia, strengthening its position as a reliable and strategic technology partner for operators globally.

Having regulated in April 2022, online gaming in Ontario has enjoyed significant growth under the guidance of the AGCO (Alcohol & Gambling Commission). As of the second quarter of the 2024-25 fiscal year , Ontario’s online gambling market reached CA$738 million in Gross Gaming Revenue (GGR), reflecting a 1.7% quarter-over-quarter growth and a 35.4% year-over-year increase, according to data supplied by the regulator.

James Coxon, Chief Operating Officer at GiG, commented: “GiG’s expertise in delivering market-leading technology is once again proving instrumental in helping partners like PowerPlay navigate the complexities of regulated markets. The successful launch into Ontario highlights our ability to facilitate seamless market entry while ensuring stability and scalability for long-term growth. Our continued focus on delivering brilliant basics, from secure platform infrastructure to optimised user experiences, is key to enabling partners to maximise their potential. We’re proud to be playing a role in PowerPlay’s success and the ongoing evolution of both the Ontarian market and the wider future of iGaming in Canada, reinforcing our reputation as a trusted partner in the regulated space.”

Dean Serrao, Chief Executive Officer at PowerPlay, commented: “The successful migration to GiG’s technology platform is a milestone for PowerPlay as we continue to grow in Ontario. This partnership allows us to offer an enhanced and seamless experience for our players, while leveraging GiG’s flexible and scalable solutions to expand our presence in the market. We are excited for what’s ahead and confident this move will help us strengthen our position as a leading brand in the province.”

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