Aspire Global revenue and profit up 40% in 2021 to date
iGaming technology and managed services supplier, Aspire Global, has published its financial results for the third quarter of 2021, showing strong growth across all sectors as net revenues reached €58.5m.
This represents year-on-year growth of 50.0% for the quarter, however expenses also rose significantly for the period, totalling €49.4m, up 52.4%.
Of the total revenues, €32.0m came from the business’ Core B2B offering. Its B2C operation, which Aspire recently agreed to sell to US-based Esports Technologies, brought in €19.8m, while the business’ B2B games and sports segments brought in €7.8m and €2.8m respectively.
Geographically, the vast majority of revenue came from the UK and Ireland (€22.7m, up 151.0%) and the rest of Europe (€22.5m, down 8.3%). A further €5.2m came from the Nordics, showing growth of 34.5% and €8.1m from the rest of the world, up 206.8%.
Costs for the quarter consisted mainly of distribution expenses, which accounted for €37.0m, with gaming duties costing a further €7.1m and administrative expenses coming in at €5.4m.
These costs left the business with EBITDA of €9.1m, up 38.0% from €6.6m in Q3 2020.
After suffering costs of €2.2m due to amortisation and depreciation, Aspire was left with an operating income of €6.8m.
The business earned €1.3m from interest income and foreign currency exchange differences, and a further €88,000 in finance income, before paying €1.3m in finance related expenses. This left Aspire with an income before taxes of €7.0m.
After paying income taxes of €593,000, the business was left with a net income before company share in the results of associated companies of €6.4m.
It then paid €428,000 as its share in the losses of associated companies, leaving net income of €5.95m, up from €3.52m in Q3 2020. This represents net income of €0.13 per share, up from €0.08 per share in Q3 last year.
Looking at the year-to-date, revenues for the first nine months of 2021 totalled €159.4m, giving the business EBITDA of €21.1m, and net income of €18.3m – or €0.39 per share.
These figures are ahead of their equivalents for the full year 2020 already, with revenue and net income some 40% ahead of the first nine months of 2020.
Following the close of the quarter, Aspire has agreed several deals – principally, to sell off its B2C segment to US-based Esports Technologies, for a consideration consisting of €50m in cash, €10m in a promissory note and €5m in common stock in the listed entity of Esports Technologies.
The transaction also includes a four-year platform and managed services agreement, with an estimated gross value of €70m based on present volumes. The deal is expected to close by the end of November, pending closing requirements.
On 9 October, Aspire completed the acquisition of B2B sportsbook and technology provider, BtoBet.
Although the majority of its revenue is currently generated in Europe, the business is also eyeing international expansion as it seeks to gain a foothold in other markets including the US and Brazil.
Pariplay, which Aspire acquired in 2019, further positioned its position in the Americas this quarter by signing its first contract in Brazil, and being granted a full supplier licence in West Virginia.
The game supplier also signed a deal to provide its proprietary games to Holland Casino in the newly regulated Dutch market during the quarter.
Tsachi Maimon, Aspire Global’s chief executive, concluded: “Aspire Global has consistently demonstrated its ability to execute its growth strategy, reaching its financial targets and create value. We see great growth opportunities by expanding with existing partners, gaining new partners and entering new markets.”
“With the divestment of the B2C segment we will further enhance investments in our technology and product offering as well as geographic presence with focus on Brazil and the US. We will also put even more energy on increasing the M&A pipeline. We clearly execute our growth strategy to become a world leading iGaming supplier.“