Aspire Global’s Half Year-Report 2019 – Strengthening Our Position
SECOND QUARTER 2019 (APR-JUNE)
• Revenues increased by 32.1% to €32.8 million (24.7)
• B2B revenues increased by 57.5% to €19.5 million (12.4), constituting 59.6% of total revenues.
• EBITDA increased by 7.2% to €6.1 million (5.7)
• EBITDA for B2B increased by 63.0% to €4.1 million (2.5), constituting 67.7% of total EBITDA
• EBITDA margin amounted to 18.5% (22.8%)
• EBIT amounted to €5.1 million (5.2)
• Earnings after tax amounted to €4.2 million (5.3)
• Earnings per share after tax amounted to €0.09 (0.11)
• First time depositors (FTDs) increased by 23.6% to 99.9 thousand (80.8)
SIX MONTHS 2019 (JAN-JUNE)
• Revenues increased by 53.1% to €66.6 million (43.1)
• B2B revenues increased by 76.5% to €39.0 million (22.1), constituting 59.1% of total revenues.
• EBITDA increased by 44.0% to €12.1 million (8.5)
• EBITDA for B2B increased by 91.0% to €8.3 million (4.3), constituting 68.2% of total EBITDA
• EBITDA margin amounted to 18.4% (19.6%)
• EBIT increased to €10.3 million (7.6)
• Earnings after tax increased to €9.1 million (7.5)
• Earnings per share after tax increased to €0.18 (0.15)
• First time depositors (FTDs) increased by 46.0% to 219.1 thousand (150.1)
SIGNIFICANT EVENTS DURING AND AFTER THE SECOND QUARTER
• The AGM 2019 took place on May 14th re-electing the board-members Aharon Aran, Carl Klingberg (Chairman), Fredrik Burvall, Tsachi Maimon and Barak Matalon until the AGM 2020, and resolving on a distribution of around SEK 1.25 per share.
• June 28th, Aspire Global announced the acquisition of the leading game aggregator platform Pariplay for approximately €13.1 million in cash in order to accelerate B2B-growth. The transaction is to be closed during the third quarter with positive effect on the company's EBITDA for 2020.
• July 26th, the Swedish administrative court extended Aspire Global’s Swedish iGaming to 2021.
|€ million||SECOND QUARTER||SIX MONTHS||FULL YEAR|
|Earnings per share, €||0.09||0.11||0.18||0.15||0.36|
|Company hold, %||52.5||55.2||52.5||53.7||52.4|
A WORD FROM THE CEO
B2B continued to boost overall company growth for the second quarter to more than 30% compared to 2018. During the second quarter, we announced a significant transaction and entered several exciting partnerships, followed by major launches over the past weeks. Revenues for the past 12 months are now approaching €130 million with an EBITDA amounting to €25 million. The acquisition of Pariplay group will accelerate growth additionally and strengthen our B2B-business through external game sales, in line with our M&A-strategy.
THE ACQUISITION OF PARIPLAY – EXECUTING OUR M&A-STRATEGY
In July, we announced the upcoming acquisition of B2B-company Pariplay for €13.1 million, the exciting and strategically important outcome of our M&A-strategy aiming at accelerating B2B-growth through external game sales. Pariplay operates one of the leading game aggregator platforms worldwide, including their own game studios, providing operators with access to thousands of game titles from leading game producers. Integrating Pariplay grants us control of yet another crucial part of the iGaming value chain – cutting costs, broadening the game portfolio and providing a channel to sell games outside of our network, including our own game titles. Moreover, Pariplay holds an iGaming license for New Jersey, which could act as the spearhead of our future efforts to enter the US market. We are looking forward to finalize the deal and we expect to consolidate the group in our financials during the third quarter.
STRONG GROWTH FOR B2B – MANIFESTING OUR POSITION AS A B2B-COMPANY
I am very proud of the strong progress for our B2B-business, currently constituting around 60% of total revenues and almost 70% of EBITDA. This is the result of our consistent strategy to focus our efforts on the right B2B-partnerships, all while improving our offering and optimizing the business set-up. It is certainly gratifying to see the results of our hard work being reflected in many of our KPIs. Being a B2B-company, I am also pleased with our unique ability to compensate for temporal imbalance from one market to another, following regulatory amendments or other extraordinary events. We are able to do so thanks to a broad market presence combined with a diversified and agile partner-base. I would however like to emphasize the role of B2C in the equation, constituting a fundamental platform for development and the best showroom for our B2B-offering. Thus, we will continue to do our outmost to remain at the forefront, also as an operator. Karamba recently won an EGR-award for the best CRM campaign, demonstrating Karamba's consistent high level of performance, and is launching the first exclusive branded game “Karamba Clan”. In July, we have also launched an entirely new B2C-brand Generation VIP.
INITIATIVES FOR SUSTAINABILITY – RAISING THE BAR FOR OUR COMING WORK
We are currently launching additional initiatives within our long-term sustainability work, with focus on four key areas: Responsible gaming, Corporate governance, Compliance and Reporting. A sustainability committee was recently implemented to set the strategy, oversee the process and support various functions. We will be implementing a number of initiatives over the coming months and the first separate sustainability report will be produced in 2020, based on GRI (Global reporting initiative).
We will continue to focus on B2B, entering additional new markets and extending the offering for some of our main brands to include more than one vertical (game category). We are also excited about the upcoming launches together with our recent partners, one of which is Apex Marketing and the other is Codere Group who will be expanding their online offering (Greenplay) to northern Europe over our platform. Codere is a publicly listed, leading Spanish gaming company operating casino games and sports betting both online and offline in Spain and South America. Founded in 1980, they have created a strong brand awareness resulting in a sustained, profitable growth over the past decade. Last but not least, we look forward to begin the integration of Pariplay, welcoming the team of around 70 new game-experts to Aspire Global, which will help us to further boost B2B-growth.
Tsachi Maimon, CEO
ABOUT THIS INFORMATION
Aspire global discloses the information provided herein pursuant to the EU Market Abuse Regulation
(MAR). The information was submitted for publication by the contact persons above at 08:15 am (CEST) on August 20th 2019.
This document is the English original. In the event of any discrepancy between the original English document and the Swedish translation, the English original shall prevail.
Today, on August 20th 2019, at 10:00 (CET), the company CEO, Tsachi Maimon, and CFO, Motti Gil, will be presenting the report and answering questions over a webcast (in English) available through the following link: https://www.redeye.se/live/aspire-global-q2-2019. The presentation material from the presentation will be published on the company website https://www.aspireglobal.com.
The complete interim report and the presentation material is available at https://www.aspireglobal.com/wp-content/uploads/2019/08/AGQ219.pdf
About Aspire Global
Founded in 2005, Aspire Global offers a comprehensive iGaming solution for operators and white labels, including a complete suite of services for casino and sportsbook, multilingual CRM, payments and risk control, support call center, VIP management, acquisition optimization and a robust, market-leading platform. Aspire Global operates in several regulated markets including Denmark, Ireland, Malta, Portugal, Sweden and the UK. Aspire Global is listed on NASDAQ First North Premier under ASPIRE. Certified Advisor: FNCA Sweden AB, firstname.lastname@example.org, +46-8-528 00 399. Please visit https://www.aspireglobal.com