Thursday, March 25th, business-to-business iGaming platform technology provider Bragg Gaming Group (TSX:BRAG) (OTC: BRGGF) released its annual financial results for the three months and year ended Dec 31, 2020. The results are greater than expected with full-year revenue up 74.6% revealing the blistering speed at which the company has grown.
The iGaming industry has been one of the few to thrive in recent months with legalization and innovation in the space at all-time highs. Most importantly with the pandemic dragging on, iGaming offers convenience. Players can access the thrill of live casino games at the touch of their fingertips. The need for remote solutions can only be expected to increase as the pandemic continues. For iGaming companies such as Bragg, this has been a golden opportunity to solidify a global presence.
In 2020 Bragg went international with its list of partnerships, adding 54 business-to-business operators over the FY period. This includes the addition of 21 operators in the fourth quarter alone. The list of partnerships features entry into international markets including Switzerland, Spain, and Portugal among others.
According to Adam Arviv, CEO of Bragg Gaming, the company is now focused on growing in two vital areas. These include rapidly building share in the evolving U.S. business-to-business gaming market, as well as building on their significant achievements in the European and Latin American markets by diversifying their offering in their key jurisdictions. In addition, Bragg has no plans on slowing its expansion with sights set on licenses from European business-to-business providers, particularly the UK Gaming Commission.
What are analysts saying?
After hosting a virtual investor marketing event that featured key company executives alongside CEO Adam Arviv, Canaccord Genuity expressed optimism in Bragg Gaming’s customer growth in the near future and its ability to conquer the North-American market in the long term. According to Canaccord analysts, “Bragg has driven significant client additions in FY2020 with the firm adding 34 customers year-to-date and management expecting to reach 50 additions by the end of the year, which would represent an approximately 80% increase in its subscriber base versus 4Q 2019,”
“In our view, this highlights the potency of Bragg’s high-quality platform and content against a backdrop of growing demand for iGaming business-to-business services.”
They further noted that Bragg Gaming’s expansion into North America would be a significant driving force in their growth. The appointment of new board directors like Paul Godfrey, founder of Postmedia, could accelerate this effort.
With a speculative buy rating of $3 per share on Bragg Gaming stock, Canaccord Genuity analysts have attested to the underlying solid growth, low capital expenditure requirements and the company’s ability to seize opportunities in North America.
The future of iGaming
With iGaming technology getting better each year, this subsector of the global gaming industry has been attracting more attention than ever before. From sports betting to casino games to online poker, a wide selection of titles now draw millions of players from around the world.
Emerging leaders such as Bragg have been able to harness an array of markets with their turn-key technology.
“Our B2B model gives us flexibility and poses less risk than a B2C model,” says Bragg’s interim CEO Adam Aviv. “We have a strong foundation in Europe and the move toward legalization in the U.S. and Canada, creates a huge opportunity for Bragg to penetrate the market at low risk with a high reward, via our model.”
The iGaming sector is now well-established in the global market and analysts have projected this growth to continue. The global market is expected to double, with an estimated market value of $100 billion by 2024. As Bragg continues to gain momentum in the iGaming world, they will certainly be one to watch.
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