Bragg Gaming Group Inc. · TSX:BRAG
Bragg Gaming — Q3 2021 Earnings Presentation
26 slides from Bragg Gaming's earnings presentation, November 2021
Slide 1: Third Quarter 2021 Results Presentation
Third Quarter 2021 Results Presentation November 2021 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") which are based upon Bragg Gaming Group Inc.'s (the "Bragg") current internal expectations, estimates, projections, assumptions an
Slide 3: Table of Contents
Table of Contents • Operational and Strategic Highlights Q3 2021 • Business Performance • Content Strategy • Licensing and New Markets • Updated Guidance • Financials • Outlook and Conclusion 3
Slide 4: Operational and Strategic Highlights
Operational and Strategic Highlights 4
Slide 5: Key Takeaways
Key Takeaways A Strong Third Quarter, New Markets Entered, New Customers Launched, Further Growth Ahead Third Quarter Revenue Strong Performance • Q3 2021 revenue rises 9.9% to €12.9 million compared to Q3 2020 • Full year 2021 revenue guidance updated to €55-56 million; FY 2021 Adjusted EBITDA guid
Slide 6: Business Performance
Business Performance 6
Slide 7: Underlying Q3 2021 Business Performance Ahead of Expectations
Underlying Q3 2021 Business Performance Ahead of Expectations Total Q3 2021 revenue performance and underlying Bragg Q3 2021 reported revenue was 34% above management expectations revenue (excluding non-recurring German revenue) was ahead of company expectations ‣ Q3 2021 revenue was ahead of our ex
Slide 8: Underlying Business Performance to Accelerate into Q4 & Beyond
Underlying Business Performance to Accelerate into Q4 & Beyond Q4 run rate revenue materially Bragg Revenue Split including Germany Q1 - Q4 2021 (€ millions) ahead of previous company expectations 18.0 ‣ New 2021 business has accelerated into Q4 driven by 16.0 new market launches, client New Busines
Slide 9: Content Strategy
Content Strategy 9
Slide 10: Content Strategy
Content Strategy New Content Strategy Outlined Meeting Customers at Industry Events New group content strategy showcased at iGB Live! In Amsterdam (Sep 28-30) and the Global Gaming Expo (G2E) in Las Vegas (Oct 5-7) ‣ Meetings with multiple operators to present new content strategy, covering product
Slide 11: Bluberi: Exclusive New Content Partner
Bluberi: Exclusive New Content Partner Global online distribution rights secured for Bluberi’s catalog of popular slot games Bluberi Overview Over 100 Slots Titles Bluberi is an established land-based casino gaming content provider established in Canada over 25 years ago and based in Las Vegas. ‣ Po
Slide 12: Continued Online Growth for Wild Streak
Continued Online Growth for Wild Streak Significant growth in online revenue Wild Streak Revenue: Land-based v Online, Q3 2020 – Q3 2021 between Q3 2020 and Q3 2021, with further expansion opportunities: 1,000 28% ‣ With nine games live online as at end 900 Online Revenue Growth Q3 2021 800 2021 Q2-
Slide 13: Wild Streak All-Time High for Q3 in Europe
Wild Streak All-Time High for Q3 in Europe ‣ Four online slots titles launched in 2021 Wild Streak Performance in Europe1 with Pragmatic Play ‣ Proof of Wild Streak slots’ stickiness Continued Strong Player Loyalty into Q3 2021 ‣ Big Juan released November 4 ‣ Five further Wild Streak titles expecte
Slide 14: Dragon Power an Established Favorite in New Jersey
Dragon Power an Established Favorite in New Jersey Wild Streak Performance in New Jersey1 ri ty Sustained Popula ‣ Game ranked consistently among the top performing online slots in New Jersey ‣ All-time record Gross Gaming Revenue Launch May (GGR) achieved on the game in New Jersey in Q3 2021 Q220 Q
Slide 15: Licensing & New Markets
Licensing & New Markets 15
Slide 16: Licensing and New Markets
Licensing and New Markets Bragg is Progressing in its Strategy of Expansion in Regulated Markets in Europe, North America and Globally New Licenses and Recent Market Entries • License obtained from the Hellenic Gaming Commission to supply the regulated market in Greece • Platform, remote games serve
Slide 17: Outlook & Conclusion
Outlook & Conclusion 17
Slide 18: Outlook & Conclusion
Outlook & Conclusion 1 Continued momentum in non-German, regulated markets worldwide 2 Positioned to leverage proven content-led strategy in the U.S. and Canada 3 Growing global footprint in North America, Europe and Latin America 4 Attractive business model with limited capex needs and high returns
Slide 19: Financials
Financials 19
Slide 20: Q3-21 Financial Results
Q3-21 Financial Results Q3 2021 Financial Highlights1 Historical Financial Overview Customers Wagering (€’b) ‣ Revenue increased by 9.9% to €12.9m 4.5 4.2 ‣ Wagering2 generated by customers up by 4.8% to €3.2B 128 4.0 3.8 114 119 3.3 3.4 3.2 ‣ The number of unique players3 using Bragg games and cont
Slide 21: Q3-21 Gross Profit Expansion - Operational Model
Q3-21 Gross Profit Expansion - Operational Model Q3 2021 Gross Profit Highlights Revenue and Gross Profit Margins ‣ Gross profit margins in growth trajectory since Q2 20 and 18.0 60.0% scaling up in line with the changes of the product mix 51.4% ‣ Platform and proprietary content products are free o
Slide 22: Q3-21 EBITDA Reconciliation
Q3-21 EBITDA Reconciliation Reconciliation Operating Loss (Income) to Adj. EBITDA (1) Share based payment: awards to new directors and management in Q1and Q3 2021 composed of Three Months Ended Sep 30, Nine Months Ended Sep 30, DSUs and RSUs. EUR 000 2021 2020 2021 2020 (2) Transaction and acquisiti
Slide 23: Solid Working Capital and Balance Sheet
Solid Working Capital and Balance Sheet Balance Sheet and Net Working Capital Cash Flow and Financial Resources As at As at Six Months Ended September 30, September 30, December 31, EUR 000 2021 2020 EUR 000 2021 2020 Operating activities 2,220 6,704 Cash and cash equivalents 20,305 26,102 Investing
Slide 24: Updated Guidance
Updated Guidance 24
Slide 25: 2022 Full Year Revenue & Adjusted EBITDA Guidance
2022 Full Year Revenue & Adjusted EBITDA Guidance 2022 FY Revenue Guidance set at €59m to €61m; 2022 FY Adjusted EBITDA set at €6m to €7m FY 2022 Revenue €59m - €61m Mid point of €60m FY2021 German Regulatory New Markets New Clients Market Growth 2021 Pipeline Content Acquistion FY 2022 Effect ‣ Ger
Slide 26: Thank you
@ BRAGG Thank you