Bragg Gaming Group Delivers 41 Per Cent Year-Over-Year Revenue Growth in 2019

Global gaming group establishes position as one of the fasting growing B2B providers in the industry

TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- Bragg Gaming Group Inc. (TSXV: BRAG, OTC: BRGGF) ("Bragg" or the "Company") announced its financial results for the three-months and year-ended December 31, 2019 today.  Bragg is pleased to announce that it achieved revenue growth of 41 per cent year-over-year in 2019 on a pro forma basis, if Oryx was owned by Bragg for the entirety of 2018, with total revenue of €26.6 million (C$40.57 million), gross profit of €12.0 million (C$18.30 million), and "Clean EBITDA" (as defined below) of €1.2 million (C$1.83 million). The Company returned a positive Clean EBITDA for the first time. ⁽¹⁾

"2019 was Bragg's first full year of operations, and we've taken significant strides to establish ourselves as one of the fastest growing B2B providers in the gaming space," said Dominic Mansour, CEO of Bragg. "We experienced record revenue growth throughout 2019 and reached positive EBITDA in the fourth quarter.”

“The strong growth can be attributed to four key factors,” continued Mr. Mansour. “The seamlessness of our integration process allowing us to swiftly and nimbly grow our operator base; the unique and local content, advanced, market leading features and player engagement tools through the Oryx Hub aggregator platform; the number of notable new client wins establishing us as a key partner in the space; and the growth of regulated revenues combined to put us in a market-leading position."

2019 Operational Highlights and Business Advancements
Key highlights from the Company's performance in 2019 include:

• Bragg’s wholly-owned subsidiary Oryx has accelerated growth and increased new operators being integrated, including Unibet, Betsson, Fullreto.co, Leo Vegas , Fav Bet and Bet Clic.
• Completing several platform enhancements to Oryx's core platform, including Oryx Hub, a new data analytics platform, and a new player engagement platform.
• Continuing geographic expansion and diversification of Oryx's revenues. The Company's dependence on its top five clients steadily decreased throughout 2019, with only 46 per cent of total revenues derived from its top five clients in December 2019, down from 73 per cent in December 2018. In addition, Oryx partnered with operators across new physical territories, and entered lucrative regulated markets including South America (Colombia) and the U.S.
• Forming a strategic partnership with Kambi, a well-established provider of premium sports betting services with an extensive client base in the U.S. Along with Kambi's sports betting services, Bragg provides their casino services and unique player account management (PAM) system to operators worldwide. The first joint deal signed is with New York's Seneca Gaming Corporation (SGC), which operates all of the Seneca Nation's Class III gaming operations in western New York. The Bragg and Kambi teams will collaborate to provide SGC with a combination of their services and products across SGC's three New York casinos.
• Completing a strategic review of the Company's online media division, including GiveMeSport and GiveMeBet assets. The Company announced a third-party strategic review of these assets in August 2019 and concluded the review in January 2020. In May 2020, subsequent to the close of fiscal 2019, the Company announced a definitive agreement for Sn&ck Media Limited to acquire GiveMeSport. Pursuant to the definitive agreement, Bragg will receive a total consideration of up to €400,000 (C$.61 million) for the media division assets. The consideration for the acquired assets consists of a blend of a cash payment on closing and deferred consideration.             

“We have recovered a major portion of our missed 2019 EBITDA target, which was negatively affected by revenue recognition, in the first quarter of 2020,” noted Mr. Mansour. “We will recover the remainder by 2020 year-end. With the completion of the GMS sale, we are now cash-flow positive and able to focus 100 per cent of our resources and energy on enhancing the Oryx platform and expanding our presence worldwide. In 2020, our team is focused on leveraging existing relationships with complementary service providers, to offer enriched content and player account management system to operators and optimizing the business to enter more regulated markets.”