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

Bragg Gaming Group


C$17.2m market cap

C$0.21 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

After years of uncertainty, all 16 German states have agreed in principle that the July 2021 Gambling Treaty will include a unified approach to allowing e-gaming (casino and poker). This follows recent news that e gaming was to be banned altogether. This new development is clearly a very positive step forward for the industry. The announcement is particularly important for Bragg, which derives c 40% of revenues from German facing operators. We will update our estimates at the FY19 results, when we expect further clarity.

Y/E Dec
Revenue (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 17.4 N/A
2020E 48.6 3.5 2.5 2.29 9.2 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 24/01/2020
Share price graph
Balance sheet
Forecast net debt (C$m) 1.3
Forecast gearing ratio (%) 7
Price performance
Actual (6.5) (4.4) (70.1)
Relative* (8.6) (11.0) (74.0)
52-week high/low C$0.8/C$0.2
*% relative to local index
Key management
Dominic Mansour CEO
Steven Prowse CFO
Yaniv Spielberg Business Development Director

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