Bragg Gaming Group expects to report strong 2Q revenue growth

Bragg Gaming Group (TSE:BRAG) (OTCMKTS:BRGGF) expects to report strong revenue growth for its second quarter ended June 30, 2021.

In a statement, the company said it generated preliminary 2Q revenue of about 15 million euros (US$17.71 million) pre-acquisition of Wild Steak Games, representing a year-over-year jump of 23.5% and a 5.7% quarterly sequential increase.

Bragg added that total revenues for the first half of 2021 are expected to be about 29.2 million euros (US$34.5 million).

READ: Bragg Gaming turbocharges its US casino game operations with US$30M Wild Streak acquisition

The company also said its revenue guidance for 2021 remains unchanged at 47 million euros (US$55.5 million) with adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization of 4 million euros (US$4.7 million) pre-acquisition. It anticipates releasing full 2Q results on August 11.

“Our financial growth as well as the operational and strategic development momentum we demonstrated in 2020, and in the first quarter of this year, continued in the second quarter,” said Bragg CEO Richard Carter in a statement.

“We are making consistent progress with our growth initiatives including the introduction of new proprietary online games with better economics while expanding our footprint into new iGaming markets. The integration and performance of Wild Streak Gaming and the anticipated closing of the Spin Games acquisition later this year will position Bragg to leverage our existing technology platform, which includes in-demand player engagement tools, with new proprietary content and customer relationships positioning Bragg to address the large US iGaming market opportunity. Our ongoing progress and success across the business has further established Bragg’s foundation to achieve long-term growth.”

The company said it is “pleased” with its overall operational progress and performance, and in particular, the performance of two new proprietary games that were launched in the 2Q on its Oryx Gaming (Oryx) network from its in-house Oryx studio. In addition, the company successfully launched a series of exclusively licenced casino games from third-party studios supported by the Oryx player engagement and data analytics tools.

Wild Steak Games and Spin Gaming acquisitions

Meanwhile, the company provided shareholders with updates on its recent Wild Steak Games acquisition and the anticipated closing of its Spin Gaming LLC acquisition.

Following the acquisition of Wild Streak in early June, Bragg said Wild Streak has continued the revenue growth it demonstrated in fiscal year 2020 and in the 1Q of 2021 across both land-based and online casinos, with online revenue growth outpacing the growth in land-based revenue.

As of June 30, 2021, Bragg said Wild Streak had seven online casino games live in key iGaming markets including in New Jersey, the UK, and other regulated jurisdictions in Europe.

Also, the company said it continues to make progress with the US and Canadian licencing process in connection with its acquisition of Spin Games, and expects to complete the acquisition in the 4Q of 2021 pending approval from state gaming commissions. 

Bragg said it has already been granted licensing approval from GPEB, the British Columbia regulator, subject to the closing of the Spin transaction. Furthermore, the company has submitted its licensing application to the New Jersey Gaming Commission and expects to submit its remaining two US licensing applications, in Pennsylvania and Michigan, in the 3Q of 2021.

It added that the technical integration between Spin and the company’s Oryx Hub distribution platform has been completed. The combined offering will deliver the benefits of Oryx’s advanced player engagement, data tools, and platform technology alongside Spin’s US market content and operator relationships.

German operations and NASDAQ uplist

Over in Germany, Bragg said the new iGaming regulatory regime in the country where the company derived the largest portion of its revenue in 2020 became effective on July 1, 2021. All operators in Germany are now required to comply with the new regulations.

The company said it will continue to monitor how the German facing market adjusts to the new regulatory framework and is closely working with its German customers to help navigate the changing regulatory landscape.

Lastly, Bragg said it expects to complete a direct listing of its shares on the NASDAQ exchange in the 3Q of 2021.

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Story by ProactiveInvestors