Home > Finance > Bragg revenue grows to €15.5m in Q2

Bragg revenue grows to €15.5m in Q2

| By Daniel O'Boyle
Gaming technology supplier Bragg Gaming Group saw revenue grow 27.6% year-on-year to €15.5m (£13.1m/$18.2m) in the second quarter of 2020, a period in which it agreed two major US acquisitions.
Finance growth

The majority of the supplier’s revenue came from Malta, at €9.4m, up 10.5% from Q2 of 2020. Curaçao made up much of the remainder, bringing in €3.8m, up 52.0%.

Revenue from Croatia rose 47.8% to €713,000, while German revenue increased almost fivefold to €404,000, thanks mostly to the liberalisation of online casino across the country through a transition period ahead of the implementation of a new State Treaty in July.

Revenue from Romania grew more than eight times over to €425,000, while revenue from Serbia doubled to €243,000 and other revenue ticked slightly upwards to €559,000.

The supplier’s costs of revenue came to €8.5m, up 20.0%, for a gross profit of €7.0m.

After €8.9m worth of general and administrative expenses, up 114.5%, Bragg’s operating loss was €1.8m, more than 15 times the loss it made in 2020.

Following interest expenses and taxes, the business made a net loss of €2.3m, up 283.3%.

Looking at the first half of 2021, Bragg’s revenue was €29.7m, which was up 42.1% year-on-year. Gross profit was up 50.6% to €13.7m, while operating losses declined 46.5% to €2.3m.

Bragg’s net loss was €3.4m, a decline of 44.3% from the €6.1m loss made in 2020.

“Throughout the second quarter, we made meaningful progress with our strategic growth initiatives including expanding existing customer relationships, building out a pipeline of premium in-house igaming content, and providing our content and offerings to new markets throughout North America and Europe,” Bragg chief executive Richard Carter said.

“We believe our growth initiatives will not only help to rapidly mitigate the near-term impact from the new Germany regulatory structure, but more importantly will help drive our execution on future revenue growth opportunities and lead to significant expansion of our EBITDA margins over the medium term.”

The business agreed to acquire Nevada-based B2B gaming content provider Spin Games in May, in order to enter the US market. 

Later in the quarter, it acquired Las Vegas-based content studio Wild Streak Gaming, in another $30m deal. The sellers of Wild Streak received $10.0m in cash at closing and will receive $20.0m worth of common shares of Bragg over the next three years.

“Bragg had strong 2021 second quarter financial performance while also continuing to advance our in-house content development strategy and new market entry plans, including entry into the North American market, and also making progress on our Germany mitigation strategies,” Carter said. “Our effectiveness in helping online casino operators connect with players is clearly reflected in the 21% year-over-year increase in the number of unique players using Bragg content, and in the 41 new customers using our games and services we’ve added over the last twelve months.”

Carter said the two acquisitions would help support Bragg’s existing offerings while allowing it to enter a new market.

“Our recent acquisition of Wild Streak brings to Bragg a fast-growing leading game development studio with a strong online content pipeline and expands on the in-house development capabilities of our Oryx Gaming studio,” he said.

“Further, our pending acquisition of Spin Games will accelerate our entry into North American igaming markets, help us port high-performing European online content into North America, and bring a wealth of US market and compliance expertise to Bragg.” 

Carter added that the acquisition would help Bragg rapidly increase the number of games it can offer.

Last week, Bragg subsidiary Oryx Gaming secured an A1 licence to supply its content to operators in Greece.

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