Bragg Gaming Issues Upbeat Q2 Sales Guidance, Says Nasdaq Listing on Pace for Q3

Posted on: July 16, 2021, 11:19h. 

Last updated on: July 16, 2021, 01:27h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Canadian gaming technology provider Bragg Gaming (OTC:BRGGF) said earlier this week its second-quarter revenue should surge 23.5 percent on a year-over-year basis. It could also list its shares on the Nasdaq Stock Market sometime in the current quarter.

Bragg Gaming
The image above illustrates the menu of online casino games offered by Bragg Gaming’s Oryx unit. The company forecast a big jump in second-quarter revenue. (Image: Proactive Investors)

In March, the company said it’s planning to bring its equity to the Nasdaq, asking investors at that time to approve a share consolidation or reverse split to boost its share price. That’s in an effort to meet the exchange’s listing requirements.

Currently, the company’s US-listed shares trade over-the-counter and trade around $8.70 at this writing. Bragg’s market capitalization is $173.56 million, putting the stock at the higher end of micro-cap territory.

The company has filed an application for the direct listing of its shares on the Nasdaq Stock Exchange. The company remains committed to this goal, and expects to complete the direct listing of its shares on the NASDAQ exchange in Q3 2021,” according to a statement.

Bragg’s plan for a US listing comes amid expectations for exponential growth in the North American iGaming market, which the small Canadian outfit is levered to.

Bragg Financial Update

The company forecast revenue of $17.7 million for the April through June period. That represents a 23.5 percent increase on a year-over-year basis and a 5.7 percent jump from the first quarter.

Bragg said that the second-quarter figure is “pre-acquisition.” The company continues integrating its purchase of Wild Streak Gaming and expects to close on the previously announced deal for its Spin Games acquisition later this year.

“The integration and performance of Wild Streak Gaming and the anticipated closing of the Spin Games acquisition later this year will position Bragg to leverage our existing technology platform, which includes in-demand player engagement tools, with new proprietary content and customer relationships positioning Bragg to address the large US iGaming market opportunity,” said Bragg CEO Richard Carter in the statement.

Those aforementioned transactions indicate Bragg is an active participant in iGaming consolidation. Analysts are saying will be persistent for some time.

More Bragg Details

The Canadian company forecast sales of $34.5 million for the first half of 2021 and notes its full-year top-line guidance remains unchanged at $55.5 million. Going forward, it’s possible revenue will rise thanks to the Wild Streak purchase.

“In Q2 2021, Wild Streak launched two online casino games: Amazing Money Machine and Lucky Lightning. These games, together with Congo Cash and Temujin Treasures (launched in Q1 2021), have demonstrated solid performance (e.g., wagering, gross gaming revenue, and unique players),” according to Bragg.

Wild Streak is operational in seven internet casino markets, including New Jersey and the UK. Bragg reports second-quarter results on Aug. 11.