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Bragg Gaming Announces Q1 2021 Results

First quarter revenue increases 62 per cent and Adjusted EBITDA increases by 234 per cent

2021 revenue guidance maintained at €47M

Accelerating rollout of proprietary in-house developed slot content

B2B gaming technology and content provider Bragg Gaming Group (TSX:BRAG, OTC:BRGGD) ("Bragg" or the "Company") today released its financial results for the three months ended March 31, 2021.

“We’ve continued to build on the strong momentum of 2020 with an excellent first quarter,” said Richard Carter, CEO of Bragg Gaming. “Revenue is up by 62 per cent year-over-year and Adjusted EBITDA increased by 234 per cent. We’ve also seen a 54 per cent increase in the number of unique players using Bragg content, have launched nine new operators and our customer pipeline for the remainder of 2021 is expected to continue to grow and expand globally, underpinning future company growth in 2021.

“We continue to invest in our employees, our technology and our product offering, and this has allowed us to commercialize our in-house casino content studio, with our first game recently launched across our network,” continued Mr. Carter. “With further in-house casino games and player engagement tools scheduled for upcoming release, and our acquisition of Spin Games LLC laying the foundation for our strategy of building a tier one vertically integrated iGaming business in the U.S., Bragg Gaming has never been better positioned for long-term success.”

Q1 2021 financial highlights

  • Revenue increased by 62 per cent to €14.2M (C$20.9M1) in the first quarter of 2021, compared to €8.8M (C$12.9M) for the first quarter of 2020, maintaining quarterly growth momentum since Q1 2019
  • Quarter-over-quarter revenue increase of 3 per cent, from €13.8M (C$20.3M) in the fourth quarter of 2020 to €14.2M (C$20.9M) in the first quarter of 2021
  • Wagering revenue generated by customers2 up by 52 per cent to €3.5B (C$5.1B) compared to €2.3B (C$3.4B) in Q1 2020
  • The number of unique players3 using Bragg games and content increased by 54 per cent up to 2.4M, from 1.6M during the comparable period in Q1 2020
  • Gross profit increased by 68 per cent to €6.6M (C$9.8M), compared to €4.0M (C$5.8M) with an increase in margins from 45 per cent to 47 per cent, mainly attributed to the shift in proportion of revenues from games and content to iGaming and turn-key services, the latter of which have lower associated cost of sales
  • Net loss for the period was €1.1M (C$1.6M), a decrease of €4.6M (C$6.8M) from Q1 2020, mainly due to the full settlement of the ORYX earn-out on January 18, 2020, resulting in nil expenditure from re-measurement of deferred and contingent consideration and accretion on liabilities in the current quarter (Q1 2020: €5.0m)
  • Adjusted EBITDA4 was €2.3M (C$3.4M) in Q1 2021, up 234 per cent compared to €0.7M (C$1.0M) in Q1 2020, with an increase in margins from 8 per cent to 16 per cent, primarily as a result of higher scale
  • Cash and cash equivalents as of March 31, 2021 increased to €30.1M (C$44.3M) compared to €26.1M as of December 31, 2020 (C$38.4M)

Selected first quarter 2021 performance indicators

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Adjusted EBITDA




Adjusted EBITDA margin











Wagering revenue (Euros)




Unique players




Revenue/ top 10 customers




Business highlights

  • Successful launch of nine new B2C operators5 during the period across a number of jurisdictions, including PAF (Finland), iGaming platform Senator (Croatia), Swiss market leader Casino Luzern and Maxbet (Romania)
  • Improved customers revenue diversification, with 62 per cent of revenue for Q1 2021 derived from the top 10 customers, as compared to 65 per cent in Q1 2020
  • Launched 11 new casino games fully certified and distributed successfully throughout the entire network
  • Signed agreement to be the exclusive distributor of slots studio Sakuragate outside of Japan
  • Completed a private placement for €1.9M (C$3.0M) - Board of Directors and management participated

Ongoing strategy

  • On May 12, 2021, Bragg announced that it had entered into an agreement to acquire Spin Games LLC (“Spin”) in a cash and stock transaction for a purchase price of approximately US$30 million. Under the deal the sellers of Spin will receive US$10 million in cash and US$20 million in Common Shares of the Company, of which US$5 million in Common Shares will be issued on closing and the balance over the next three years. The transaction will close following final approval from state gaming regulators and satisfaction of other customary closing conditions
  • Recently announced the appointment of Richard Carter to the role of CEO, effective May 1, 2021
  • Announced intent to trade on the Nasdaq Stock Market and completed share consolidation to support the listing
  • First in-house developed proprietary casino game launched across the Bragg network with encouraging early signs, with five more planned in the remainder of 2021
  • Continuing to invest in technical infrastructure, an in-house content studio, increasing operational efficiencies, and deepening data analytics, gamification and bonusing features
  • Continuing to explore strategic M&A opportunities in the U.S. and globally


Bragg’s revenue guidance for 2021 remains unchanged at €47m (C$69M) with adjusted EBITDA of €4m (C$6M) pre-M&A.

First Quarter 2021 conference call information

Call will take place on Thursday May 13, 2021 at 8:30am ET.

Richard Carter, CEO of Bragg, along with Chief Financial Officer Ronen Kannor and Chief Strategy Officer Yaniv Spielberg, will host the call.

To join the call, please use the below dial-in information:

Participant Toll Free Dial-In Number: +1 844.965.3274

Participant International Dial-In Number: +1 639.491.2382

Conference ID: 8473511

A replay of the call will be available for seven days following the conclusion of the live call.

Replay Dial-In Number: 1.800.585.8367 or 1.416.621.4642

Conference ID: 8473511

About Bragg Gaming Group

Bragg Gaming Group (TSX:BRAG, OTC: BRGGD) is a global B2B gaming technology and content provider. Since its inception in 2012, Bragg has grown to include operations across Europe and Latin America and is expanding into an international force within the growing global online gaming market.

Through its wholly owned subsidiary ORYX, Bragg delivers an innovative business-to-business iGaming platform, casino content aggregator, managed sportsbook and managed services provider, offering cutting-edge content from leading studios.

Bragg’s ORYX Gaming is licensed by the Malta Gaming Authority (MGA) and the Romanian National Gambling Office (ONJN) and its content is certified or approved in 18 other major jurisdictions. Underpinning Bragg Gaming Group’s commitment to information security, ORYX Gaming was recently awarded an ISO/IEC 27001 certificate.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking statements or "forward-looking information" within the meaning of applicable Canadian securities laws ("forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans," "expects" or "does not expect," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates" or "does not anticipate," or "believes," or describes a "goal," or variation of such words and phrases or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved.

All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: the impact of COVID-19 on the business of the Company; the countercyclical growth of the business of the Company; the regulatory regime governing the business of the Company; the operations of the Company; the products and services of the Company; the Company's customers; acquisition opportunities; the growth of the Company's business, which may not be achieved or realized within the time frames stated or at all; and the anticipated size and/or revenue associated with the gaming market globally.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the following: risks associated with general economic conditions; adverse industry events; future legislative and regulatory developments; the inability to access sufficient capital from internal and external sources; the inability to access sufficient capital on favourable terms; realization of growth estimates, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices; the estimated size of the gaming market globally; changes in customer demand; disruptions to our technology network including computer systems and software; natural events such as severe weather, fires, floods and earthquakes; and risks related to health pandemics and the outbreak of communicable diseases, such as the current outbreak of COVID-19.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Any forward-looking statement made by the Company in this news release or the earnings call is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Company nor any of its management or directors undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Non-IFRS Financial Measures

Statements in this news release make reference to "Adjusted EBITDA," which is a non-IFRS (as defined herein) financial measure that the Company believes is appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company's past financial performance and prospects for the future. The Company believes that "Adjusted EBITDA" provides useful information to both management and investors by excluding specific expenses and items that management believe are not indicative of the Company's core operating results. "Adjusted EBITDA" is a financial measure that does not have a standardized meaning under International Financial Reporting Standards ("IFRS"). As there is no standardized method of calculating "Adjusted EBITDA," it may not be directly comparable with similarly titled measures used by other companies. The Company considers "Adjusted EBITDA" to be a relevant indicator for measuring trends in performance and its ability to generate funds to service its debt and to meet its future working capital and capital expenditure requirements. "Adjusted EBITDA" is not a generally accepted earnings measure and should not be considered in isolation or as an alternative to net income (loss), cash flows or other measures of performance prepared in accordance with IFRS.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.


1 Bragg Gaming’s reporting currency is Euros. The exchange rate provided for Canadian dollars is 1.47. Due to fluctuating currency exchange, this rate is provided for convenience only and may differ from the rate used to calculate 2020 numbers

2 “customer " is a licensed entity that contracts directly with the group for B2B gaming services

3 “unique players" are defined as individuals who made a real money wager at least once during the period.

4 Adjusted EBITDA is a non-IFRS measure. For important information on the Company’s non-IFRS measures, see “Non-IFRS Financial Measures” below.

5 “operator " is a licensed entity that contracts directly or indirectly with the group for B2B gaming services


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