Aspire Global eyes ‘the next step’ after ‘record high’ Q4

Aspire Global has reaffirmed that its impending buyout by NeoGames forms a “natural next step” for a group that is “looking forward to the next step”.
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Aspire Global reaffirmed in its interim fourth quarter and full-year financial report that its impending $480m buyout by NeoGames forms a “natural next step” for a group that is “looking forward to the next step” in its journey.

CEO Tsachi Maimon has stated that the “significant long term value” to be generated for both Aspire and NeoGames shareholders through synergies created and strong capitalization.

The group noted on its performance during Q4 and 2021 that, despite recording a “record high B2B performance,” financials were hindered by fresh European regulations and “unusually unfavorable” sporting results through October.

Q4 revenue improved by 14.7% to $57.8m (2020: $50.31m), which, when adjusted to exclude the now divested B2C segment increased to an uptick of 24.4%.

Aspire states that this result is due to momentum in the sports and casino verticals in existing markets, and geographic expansion to new regulated regions primarily in the Americas and Europe.

Nordics income grew by 8.1% to $4.54m (2020: $4.2m,), while the group’s UK and Ireland reporting segment soared 89.2% to record $23.96m (2020: $12.61m).

The rest of Europe was impacted by the previously mentioned regulations across certain jurisdictions, dropping 25.1% to $20.78m (2020: $27.71m), with the rest of the world increasing by 46.7% to $8.52m (2020: $5.79m) thanks to expansion in the Americas and Africa, enhanced by the consolidation of BtoBet.

Aspire’s revenue across its B2B financial performance division grew by 24.4% to $46.67m (2020: $37.59m), driven by momentum across all segments, with B2C, for a two-month period during the quarter, falling by 17% to $13.4m (2020: $16.24m).

Across the group’s B2B sub-segments, revenue in Aspire Core, Pariplay, and BtoBet rose 18.9%, 44.2%, and 60.1% respectively, to $33.95m (2020: $28.5m), $9.43m (2020: €5.8m), and $6.59m (2020: $2.50m) respectively.

Group-wide EBITDA in Q4 fell by 9.1% to $8.52m (2020: $9.43m), impacted by “a negative contribution from the B2C divested segment” as well as unfavorable player results across sports.

Maimon stated: “By the divestment of our B2C segment December 1, 2021, we made additional significant strategic move to become a clearly focused B2B company.

“By this streamlining of the business, we not only become stronger but also more profitable. During the year, excluding the B2C segment, revenues increased by 31.5% to €158.3m and EBITDA increased by 45.2% to €30.4m in 2021 with an EBITDA margin of 19.2%. B2B organic revenue growth in 2021 amounted to 26.6%.

“These are record high numbers that we are proud of and they reflect the professionalism, drive and commitment of the Aspire Global team. It is also with satisfaction that I can note that we have well exceeded our financial targets for 2021.”

For 2021, revenue improved by 31.8% to $242.22m (2020: $183.85m), with EBITDA up 29.2% to $39.75m (2020: $30.77m) thanks to “improved results in the sub-segments Aspire Core and Pariplay”.

Per region, the rest of Europe segment increased by 8% to close at $102.66m (2020: $111.52m), with the UK and Ireland up 122.2% to $88.58m (2020: $39.86m), ahead of the rest of the world’s $31.80m (2020: $13.85m) and the Nordics $19.19m (2020: $18.62m).

Maimon added: “Aspire Global is today a focused B2B company with a leading offering in the igaming industry. We have over the past years made significant progress in building a strong position and adding tier one operators to our partner base, not least after the value creating acquisitions of BtoBet and Pariplay.

“We are now looking forward to the next step in our journey and I am very excited by the opportunities the combination of Aspire Global and NeoGames offers.”