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Esports Technologies predicts $70m revenue in 10-month period following acquisition of Aspire Global’s B2C brands

By Conor Mulheir - 19 Jan, 2022

Esports Technologies expects to generate revenue of $70m for the 10-month period from December 2021 to September 2022, according to financial guidance released today (19 January).

The operator said its revenue projection and associated growth expectations are derived primarily from its online sportsbook and casino brands, which serve some 1.25m customers in 15 countries globally.

The brands include Karamba, GenerationVIP and Dansk777. These were acquired by the business from Aspire Global in November 2021, two months into the company’s fiscal year.

The purchase will cost up to a total of €135m over the next four years, with an initial price consisting of €50m in cash, €10m in a promissory note and €5m in common stock in the listed entity of Esports Technologies.

A further platform and managed services agreement, set out as part of the deal, sees Aspire Global’s B2B technology continue to power the portfolio of brands over the next four years, in exchange for royalties. This contract is expected to be worth as much as €70m.

The 10-month period in question represents the time between the closing of the brand acquisition until the end of the current fiscal year on 30 September 2022.

Esports Technologies said it will aim to continue growing revenue by offering additional esports wagering opportunities and by layering its own wagering odds model on top of the acquired brands.

The company added it was in a strong position to benefit from the increasing popularity and interest in esports globally.

Esports Technologies CEO Aaron Speach said: “As we begin a successful 2022, we remain committed to increasing our operational and financial performance.

“We expect to deliver consistent cash flow for the remainder of 2022 by growing esports revenue in regulated markets, as well as continued growth from our portfolio of online sportsbook and casino brands,” he added.

The business is listed on Nasdaq under the ticker symbol EBET. Shares are trading at $13.50 at the time of writing, up 4.9% from yesterday’s closing price of $12.87.