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Aspire Global’s Year-End Report 2019 – Another Year of Strong Growth
FOURTH QUARTER 2019 (OCT-DEC)
• Revenues decreased by 2.0% to €32.2 million (32.9).
• B2B revenues increased by 10.0% to €21.2 million (19.3), constituting 66.0% of total revenues.
• EBITDA decreased by 33.6% to €4.4 million (6.6).
• EBITDA for B2B decreased by 21.0% to €3.4 million (4.4), constituting 78.8% of total EBITDA.
• The EBITDA margin amounted to 13.5% (20.0%)
• EBIT amounted to €3.1 million (6.0).
• Earnings after tax amounted to €-12.1 million (4.6), impacted by the tax settlement of €13.7 million related to the fiscal years 2008–2018.
• Earnings per share after tax amounted to €-0.26 (0.10) including, and €0.03 (0.10) excluding, a one-off tax item.
• First time depositors in thousands (FTDs) decreased by 14.6% to 105.6 thousand (123.7).
FULL YEAR 2019 (JAN-DEC)
• Revenues increased by 26.0% to €131.4 million (104.6).
• B2B revenues increased by 43.4% to €81.1 million (56.6), constituting 62.0% of total revenues.
• EBITDA increased by 2.4% to €21.7 million (21.2).
• EBITDA for B2B increased by 29.0% to €15.9 million (12.4), constituting 73.4% of total EBITDA.
• The EBITDA margin amounted to 16.5% (20.3%)
• EBIT amounted to €17.7 million (19.3).
• Earnings after tax amounted to €0.4 million (16.2), impacted by the tax settlement of €13.7 million related to the fiscal years 2008–2018.
• Earnings per share after tax amounted to €0.01 (0.36) including, and €0.31 (0.36) excluding, a one-off tax item.
• First time depositors in thousands (FTDs) increased by 20.0% to 444.5 thousand (370.4).
• The Board proposes the AGM that no dividend is paid out for 2019 following the tax settlement and the continued search for M&A opportunities. The long-term dividend target of 50% of net profit remains.
SIGNIFICANT EVENTS DURING AND AFTER THE FOURTH QUARTER
• October 7th, Aspire Global finalized the acquisition of the leading game aggregator platform Pariplay for €13.3 million in cash, according to the initial conditions. With the acquisition Aspire Global has gained control of yet another crucial part of the iGaming value chain – creating synergies, broadening the game portfolio and providing a channel to distribute propriety games outside the partner network. The transaction had a positive effect on the company’s EBITDA already in Q4 2019.
• Aspire Global appealed against the lawsuit made by the Swedish Consumer Agency (“KO”) in October claiming that the company violated the marketing provisions of the Gaming- and Marketing acts.
• November 1st 2019, Aspire Global announced the coming entering into the regulated US market as Pariplay signed an agreement for New Jersey with longstanding partner 888casino.
• December 31st 2019, Aspire Global reached an agreement for a settlement with the Israeli Tax Authority in the previously disclosed tax audit.
STATEMENT FROM THE CEO
I am pleased to conclude that we have delivered another year of strong growth, despite changes in the market environment. Revenues increased by 26% to €131.4 million with an EBITDA margin of 16.5%, in line with our financial targets. We have proven that our strategy is efficient, and we have a solid foundation to continue to expand our business through organic growth and M&A.
We had a somewhat disappointing last quarter of the year due to new regulatory requirements in regulated markets, such as the UK, as well as markets to become regulated. Compliance is top on our agenda and we swiftly adapt to new regulatory requirements, knowing that our longer-term benefits are larger than the short-term impact. Our settlement with the Israeli tax authorities had a significant impact on net income and EPS in the quarter. Nonetheless, I am satisfied with the settlement as it provides the market with clarity around the outcome of the audit. The additional tax charge of €13.7 million is reported as a one-off tax item.
Growth for Pariplay in 2020
One of the highlights in the quarter is the successful integration of Pariplay where we already have realized some of the synergies. Pariplay contributed to revenues and EBITDA in the quarter with €3 million and €0.5 million respectively. The acquisition will create further cost synergies, strengthen our market presence in B2B, serve as our first footprint in the US and generate revenue streams outside our existing partners on our platform. The technical integration is completed, and we are happy to have all main third-party suppliers on board from the start. During the fourth quarter, Pariplay signed two new operator deals. We expect Pariplay to generate significant growth in 2020 with a positive effect on the Group’s EBITDA.
Material organic growth in 2019
In 2019 we continued to deliver on our growth strategy and accelerated the number of partners and brands as well as strengthened our offering. In the quarter, three new partnerships were signed, and seven new B2B-brands were launched. By year-end, we had 77 B2B-brands and 44 partners operating on our platform, which is a material increase from 2018. The B2B-segment grew by 43.4% in 2019, constituting 62.0% of Group revenues, while growth for B2C was around 5% following weaker performance due to new regulatory requirements, although partially compensated by other markets.
We see great interest in our recent verticals sports and bingo and several partners are looking to broaden their offering. Four B2B-brands are currently offering sportsbook and three launches are soon to come. Bingo is live with one B2B-brand and three launches are near, including Karamba.
Competitive advantages in the regulated landscape
We have given clear proof of our ability to grow with good profitability in regulated markets. In 2019, more than 50% of our revenues came from regulated and taxed markets. We welcome the trend where more markets become regulated. We believe it benefits companies like ours, with a sustainable growth strategy rather than a more opportunistic approach and we consider it to be a business opportunity. We will continue to strengthen our market position in the regulated landscape by expanding in the value chain. It grants us a unique, competitive advantage as current and future partners wish to enhance their potential in any jurisdiction. Thus, we continue the active search for acquisition opportunities and new projects across various parts of the value chain, in Europe as well as other parts of the world. We are confident in our integration skills and we have the financial strength to execute on our M&A-strategy.
Continued sustainable profitable growth
Our broad market presence and product offering give us a solid foundation for sustainable profitable growth. We will continue to enhance our multi-vertical offering while maintaining the search for M&A-opportunities, supported by our strong balance sheet. We are confident in our ability to meet our financial targets for 2021, €200 million in revenues and €32 million in EBITDA.
Tsachi Maimon, CEO Aspire Global
CJEU
Malta faces new dawn as EU courts gather strength
With Bill 55 on increasingly shaky ground amid a transitional era for online gambling, what does the future hold for Malta’s point-of-supply industry?
This week has seen the EU heap yet more pressure on Bill 55, a defensive measure introduced by the Maltese government to hold back a tidal wave of player refund lawsuits that could cost the industry hundreds of millions of euros.
Players in Austria and Germany have been able to successfully argue in court that they should be repaid all money lost to operators that offered gambling in their countries without a local licence. The cases stand to erase years of grey market earnings at many operators.
Bill 55, which in June 2023 became an official amendment to the Malta Gaming Act under the title Article 56A, allows judges to reject court rulings from other EU nations if they threaten the economic security of the island’s gambling industry.
It has served Maltese operators well since it was enacted, effectively blocking lawyers from passporting claims from Austria, Germany and elsewhere to the location where operators are legally headquartered, in order to force them to pay out.
This has triggered an international legal wrestling match, now being fought via a series of cases at the Court of Justice of the European Union (CJEU), the EU’s highest judicial authority.
So far, the judgements and opinions issued have not made comfortable reading for the Maltese industry or its regulatory officials.
Earlier this month, the court appeared to settle a longtime debate on which the entire premise of Malta as an offshore hub is founded. Judges said that the freedom to provide services within the EU does not allow for operators to ignore local prohibitions on certain types of gambling.
That was followed this week by an Advocate General (AG) advising judges that if they were to consider the legality of Bill 55, it should be struck down.
It also reaffirmed the court’s dim view of gambling as a cross-border service.
As the opinion put it: “Under the current state of EU law, Member States are under no obligation to recognise gambling licences issued by other Member States. Accordingly, a Maltese gaming licence is, in principle, valid only in Malta.”
This opinion is only advisory, and is unlikely to amount to anything in this particular case (C-683/24) because the AG also recommended that the case as a whole should be ruled inadmissible.
But this is just one in a handful of similar issues being considered by the CJEU and the more time that passes, the greater the pressure appears to be on Malta and Bill 55.
The EU is also taking a tandem approach: The European Commission, the EU’s executive arm, has itself opened an investigation into Malta and the legality of Article 56A and has indicated through its own statements and submissions to the CJEU that it considers the provision to be against EU law.
New tactics needed?
All of which leads to several difficult questions for Malta and the many gambling companies based there.
The first is a defensive issue: With Bill 55 on the ropes, how will the nation prevent the many operators who call its islands home from being stuck with a huge refund charge?
Work is already underway to mount a new defense. The tactic uses the same inspiration as Article 56A, which argues that allowing the foreign court judgments that demand large payments from operators would seriously damage the Maltese economy and thereby upset its “public policy”.
The EU principle, also known as “ordre public”, allows for member states to make legal exceptions in order to protect their society.
In a pair of new cases addressing transferred player refund claims from Austria, Maltese lawyers have argued, without reference to Bill 55, that granting the payment orders would upset the nation’s public order.
These two cases are a clear attempt to establish that, even without any specific Gaming Act amendments, the principle of ordre public protects Maltese gambling firms from having to pay up.
The problem is, the CJEU may have seen this coming.
“The fact that the enforcement of certain judgments may entail serious economic consequences for a national operator, an industry or even the Member State addressed does not justify recourse to the ‘public policy’ clause,” reads the recent AG opinion.
Although lawyers in Malta insist that the AG’s comments should be taken only to refer to Bill 55.
Meanwhile, lawyers fighting to recover refunds believe that cases like these, which have already been appealed, will themselves wind up in the CJEU and at least buy more time for Malta before payouts need to be made.
A new kind of industry hub?
Perhaps the more fundamental question is what Malta offers as a gambling hub over the next decade.
It’s been apparent for some time that the value of a Maltese licence is degrading, through no fault of local authorities.
As European nations gradually switched on their own licensing models, operators have needed to collect local approvals.
Even where nations have clung firmly to monopolies, like in Norway, authorities have also become more effective in enforcing against offshore operators who offer into their territories.
The clear trend of the CJEU also indicates that arguments based on the freedom to provide services are practically finished.
In face of this reality, regulators and business leaders in Malta are looking further afield. Maltese law firms have appeared in locations as far afield as the UAE and Taiwan in recent years, as they look to advertise the nation’s status as a centre of iGaming excellence to emerging online gambling markets.
Leaning into the density of online gambling expertise is also an increasingly important strategy for those looking to attract investment to Malta.
The reason that the industry flocked to Malta in the first place may no longer be relevant, but it’s still the case that two decades later the nation boasts a greater concentration of industry talent than in any other European nation.
There’s also been an increased focus on suppliers, which typically have lower local compliance overheads and more ability to run their businesses remotely from the territories where their content is used.
Although this sector is increasingly subject to local licensing, as well as new compliance burdens designed by regulators looking to drive a wedge between on- and offshore online gambling markets.
Change is inevitable
Malta has demonstrated its ability to adapt and survive, but there’s little denying that the nation’s gambling industry has never been more under siege than it is now.
After decades of growth and success, new ideas are needed to steer the sector into a new phase.
The success with which it emerges from the Bill 55 era will have a dramatic impact on Europe’s online gambling sector and beyond.
The post Malta faces new dawn as EU courts gather strength appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
av advertising
BetVictor rolls out new brand campaign with biggest AV spend to date
BVGroup’s flagship brand BetVictor has launched a new brand campaign, “For All Your Favourite Things”, backed by what the company said is its largest AV investment to date.
The campaign, created by Barn Door Studios, uses a rewrite of “My Favourite Things” from The Sound of Music over visuals of sporting events. BetVictor said the creative focuses on “the uncomplicated thrill of sport and betting”.
BetVictor is timing the launch around this weekend’s Premier League schedule, with spots running alongside Arsenal vs Newcastle on Saturday evening and Chelsea vs Leeds on Sunday afternoon.
Media planning is led by Bountiful Cow. The plan includes a new partnership with Sky, spanning live sport integrations, on-demand, YouTube channels and targeted digital placements via Sky Advance. BetVictor also outlined a data-led SVOD and BVOD strategy across ITVX, Channel 4, Prime Video and Netflix, plus digital and social.
Richard Walters, Director of Brand and Creative at BetVictor, said:
“‘For All Your Favourite Things’ captures what BetVictor stands for today – a premium, straightforward experience that enhances the thrill of sport.
When done right, we believe that gambling is a simple pleasure; one that we love connecting our customers to. We wanted to celebrate the moments that matter most to sports fans.”
The post BetVictor rolls out new brand campaign with biggest AV spend to date appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Africa
QTech Games wins Leader in Online Casino at SBEA+ Eventus Awards 2026
QTech Games has won the Leader in Online Casino award at the Annual Sports Betting East Africa (SBEA+) 2026 Summit in Nairobi, Kenya.
The company said it beat other shortlisted suppliers including SA Gaming, BetConstruct, and DST Gaming. The award is described by the event as recognising the “top all-round online casino platform for innovation, user engagement, and sustained growth” over the past year.
The SBEA+ Eventus Awards focus on the East African igaming and sports betting sector and were presented at a gala ceremony at the Argyle Grand Hotel. QTech Games said the judging period covered 2025/26 and that its aggregation platform performance was ranked highest by the panel.
QTech Games CEO Philip Doftvik said: “We’re thrilled to have walked off with another notable award for the best overall online-casino-platform provision in East Africa. Being shortlisted in such good company was already a result, but victory provides the real validation, particularly after running a great campaign at recent Eventus events in Africa. We’ve been promoting QTech Hybrid, our breakthrough retail solution, to great effect and it’s been fantastic to see that going live with a handful of top-tier clients on this continent has led to such overwhelmingly positive feedback and immediate success cases in the realm of genuine innovation.
“This win is testimony to our diligent team at QTech Games, and to the constantly growing group of innovative suppliers that our platform represents. It’s a truly collaborative effort. We remain committed to rolling out high-quality content that drives revenue for our worldwide partners across Africa and beyond. After all, in today’s marketplace, only premium games of the highest standard will separate you from the crowd, so we were delighted to see the panel acknowledge how our premier platform is delivering across Africa’s eclectic ecosystem. We’ve made our name as the pre-eminent aggregator in these evolving margin markets, delivering localised games that speak to a host of player proclivities. This award win will spur us on to new horizons.”
The post QTech Games wins Leader in Online Casino at SBEA+ Eventus Awards 2026 appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
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