Bragg Gaming Group (TSE:BRAG) said Thursday that its results for the nine months ended December 31, 2018 saw an overall revenue expansion of nearly 10% period on period, with newly acquired ORYX Gaming giving revenue a nice boost.
ORYX was acquired at the close of 2018. Its platform plays host to a mix of its own games as well as third-party games for slots, lottery, virtual sports, content supplied by live dealers, casino, virtual sports and instant games.
The acquisition of ORYX in late December 2018 contributed 13.6% to overall group revenue, despite the business combination with Bragg only being cemented in the final 10 days of the year.
"Late 2018 began a period of transformation for the company," said Bragg Gaming Group CEO Dominic Mansour. "Our priority was a complete pivot in strategy away from the old Breaking Data, including exiting the unprofitable AI and ad agency divisions. We appointed a new executive team and high-pofile board members, including Jim Ryan and Paul Pathak.”
Mansour gave the rationale for acquiring ORYX Gaming, saying it was a “profitable, high performing gaming software business.”
“We're now continuing the momentum at ORYX, growing existing customer relationships and adding new tier one customers, such as Mr Green, Betsson and Casumo, allowing us to build and expand quickly into global gaming markets," said Mansour.
Bragg's overall revenue increased by 9.7% during the period to C$8.8 million. However, ORYX Gaming showed substantial growth on its own account, posting C$29.2 million in revenue in 2018, more than three times the previous year's figure.
Restructure of GIVEMESPORT pays off
“GIVEMESPORT is undergoing a complete restructure. We have substantially reduced the cost base, realizing annual savings of over C$1.6M," said Mansour. "It's early days, but we're performing well ahead of our expectations. We've enhanced the quality of content and the changes have already resulted in significant increases in our key metrics, including a 23% increase in Facebook uniques year to date, jumping to 33.6 million in April.”
The company said that Video engagement on GIVEMESPORT had also shot up 124% in a testament to its popularity.
Bragg Gaming Group expects to report first quarter results by the end of May.
Leap in 1Q 2019 revenue
"We've had a positive start to 2019. With our new leadership team in place and our transformation strategies now underway, we're already seeing results,” noted Mansour.
Mansour said that the he anticipates that for first quarter 2019, consolidated Bragg revenues will be in the range of C$8.8 million to $10.4 million, as compared to C$2.7 million in the same period a year ago.
“This faster than anticipated growth confirms that we're on the right path to realizing our vision of building a next generation gaming group,” said Mansour.
Bragg’s portfolio includes Oryx Gaming, a B2B gaming platform and casino content aggregator; GiveMeSport, a sports media outlet; and GiveMeBet, a sportsbook in the UK.
Contact Uttara Choudhury at [email protected]