Bragg Gaming touts 75% revenue increase in 4Q, full year 2020 results as unique users increase

Bragg Gaming Group (TSE:BRAG) (OTC:BRGGF) released its fourth-quarter and full-year financial results on Thursday, including revenue that increased by nearly 75%. Revenue for the three months ended December 31 was €13.8 million (C$20.4 million), compared to €7.8 million (C$11.6 million) in the fourth quarter of 2019. For the full year, revenue was €46.4 million (C$68.7 million), compared to €26.6 million (C$39.3 million) in 2019.  Wagering revenue generated by customers rose by 50% year-over-year to €3.2 billion (C$4.7 billion) in the fourth quarter compared to €2.1 billion (C$3.2 billion) in the same period of 2019. Full year wagering revenue increased by 74% to €11.8 billion (C$17.5 billion), compared to €6.8 billion (C$10.1 billion) in 2019.  READ: Bragg Gaming Group appoints Richard Carter as new CEO “We’ve made extraordinary progress in 2020 and are very pleased with the substantial revenue and EBITDA growth that we’ve delivered,” interim CEO Adam Arviv said in a statement. “We continue to expand globally, enhancing our content portfolio and technology offering, and securing new customers across key geographies.” Reflective of this is an increase of 70% in unique players using Bragg games and content in the fourth quarter, up to 2.5 million from 1.5 million during the comparable quarter in 2019. The company also improved customer revenue diversification, with 58% of revenue derived from the top 10 customers in 2020, compared to 72% in 2019. The company launched 54 B2B operators during 2020, across a number of global jurisdictions, including 21 operators during the fourth quarter. It also expanded its geographic presence, with entry into a number of new global markets, including Switzerland, Bulgaria, Portugal, Latvia, Czech Republic and Spain. “We’re particularly pleased with the overall performance of Bragg during 2020 and believe we have built strong foundations to support future market share gains and new market entry,” Chairman Richard Carter said. “Adam and I have taken active leadership roles within Bragg to ensure the future success of the company. We’re aligned in our strategy to grow the group’s underlying operating profit margin and to expand rapidly into new markets, particularly the burgeoning US market.” Net loss for the period was €5.3 million (C$7.9 million), in line with 2019 results of €5.3 million (C$7.9 million) in the same quarter. For the year, net loss was €14.6 million (C$21.6 million), compared to €11.9 million (C$17.7 million) in 2019. The company attributed the increase primarily to the re-measurement of deferred and contingent consideration and the accretion of liabilities for its ORYX earn-out. Cash and cash equivalents as of December 31, 2020 were €26.1 million (C$38.6 million). Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com Follow him on Twitter @andrew_kessel