Stride Gaming (STR); trading performance since the start of the year in line with expectations

Bragg Gaming Group

CN: BRAG

CA$17.6m market cap

CA$0.22 last close

Bragg Gaming Group (formerly Breaking Data Corp) is a Toronto-based B2B online gaming holding company. The core asset is Oryx Gaming, a predominantly European B2B online gaming platform. Bragg’s online sports media outlet is under strategic review, including a possible sale.

Investment summary

CEO Dominic Mansour provides an introduction to Bragg Gaming – a fast-growing European online B2B casino operator. Revenue increased by 30% during Q319 and Bragg is now entering the US market through partnerships with Kambi and Seneca.

Y/E Dec
Revenue (C$m)
EBITDA (C$m)
PBT (C$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A N/A N/A N/A N/A N/A N/A
2018A 12.2 (3.3) (3.6) (4.66) N/A N/A
2019E 39.4 1.5 1.1 1.21 18.2 N/A
2020E 48.6 3.5 2.5 2.29 9.6 N/A
Industry outlook

According to H2 Gambling Capital (H2GC), the global online gaming market has grown at a c 10% CAGR over the past 10 years and amounted to c £40bn gross gaming revenues in 2018. Driven largely by the opening of the US market, H2GC estimates online growth of 7% CAGR to 2023. As Oryx continues to gain market share, we would expect the business to grow significantly faster than the sector, across all its major markets, particularly from newly regulating markets such as the US and Latin America.

Last updated on 13/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (C$m) 1.3
Forecast gearing ratio (%) 7
Price performance
%
1m
3m
12m
Actual 4.8 (37.1) (56.0)
Relative* 1.4 (39.4) (60.7)
52-week high/low C$1.3/C$0.2
*% relative to local index
Key management
Dominic Mansour CEO
Akshay Kumar CFO
Yaniv Spielberg Business Development Director

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