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Aspire Global: Interim Report Fourth Quarter 2021

Published

2 years ago

February 17, 2022

George Miller

Reading Time: 6 minutes

Record High Revenues of €213 Million in 2021

FOURTH QUARTER*

· Revenues increased by 14.7% to €50.9 million (44.4).

· Revenues Pro-Forma basis increased by 24.0% to €42.6 million (34.4).

· EBITDA decreased by 9.1 % to €7.5 million (8.3).

· EBITDA Pro-Forma basis increased by 24.0% to €7.7 million (6.2).

· The EBITDA margin amounted to 14.8% (18.6%).

· EBITDA margin Pro-Forma basis amounted to 18.1% (18.1%)

· EBIT decreased by 18.7% to €5.1 million (6.3).

· EBIT Pro-Forma basis increased by 25.1% to €5.3 million (4.3).

· Earnings after tax (before €59.7 million net capital gain on B2C divestment) increased by 38.9% to €4.2 million (3.1).

· Earnings per share amounted to €0.09 (0.07) and €1.37 incl. capital gain from divestment of the B2C segment.

FULL YEAR*

· Revenues increased by 31.8% to €213.3 million (161.9).

· Revenues Pro-Forma basis increased by 31.9% to €166.5 million (126.2).

· EBITDA increased by 29.2% to €35.0 million (27.1).

· EBITDA Pro-Forma basis increased by 45.2% to €30.4 million (20.9).

· The EBITDA margin amounted to 16.4% (16.7%).

· EBITDA margin Pro-Forma basis amounted to 18.2% (16.6%)

· EBIT increased by 26.2% to €26.3 million (20.8).

· EBIT Pro-Forma basis increased by 47.7% to €21.6 million (14.7).

· Earnings after tax (before €59.7 million net capital gain on B2C divestment) increased 72.0% to €22.6 million (13.1).

· Earnings per share increased 64.3% to €0.49 (0.28) and €1.77 incl. capital gain from divestment of B2C segment.

*B2C as continued operations and based on net royalties in December 2021. Pro-Forma basis of B2C based on net royalties for the presented period and a specification is found on page 8 in the report.

SIGNIFICANT EVENTS IN THE QUARTER

· Aspire Global divested its B2C segment effective on 1 December, 2021.

· Further expansion in the US by Pariplay’s deal with BetMGM, the leading US online casino operator.

· Strengthened position in Latin America through BtoBet’s deal with FanDuel, part of Flutter Entertainment, to provide its PAM for Daily Fantasy Sports in Brazil. Pariplay signed deal to supply its proprietary games to Holland Casino in the Netherlands. BtoBet signed deal with BestBet24 to provide its sports platform in Poland.

· Agreement to acquire 25% of bingo supplier END 2 END with option to acquire all shares.

· The Board of Directors proposes that no dividend is paid for the financial year 2021.

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

· On 17 January 2022, a public tender offer was made by NeoGames to the shareholders of Aspire Global to tender all their shares in the Company to NeoGames for a consideration consisting of a combination of cash and newly issued shares in NeoGames in the form of Swedish depository receipts. The shares in NeoGames are admitted to trading in the US on the Nasdaq Stock Exchange, Global Market tier. Aspire Global’s main shareholders, who in aggregate own shares corresponding to 66.96% of all shares and votes in Aspire Global, have entered into irrevocable undertakings that enable the other shareholders in Aspire Global to tender their shares to NeoGames and receive 100% cash consideration corresponding to SEK 111.00 per share tendered in Aspire Global representing a premium of 41.40% compared to the closing price 17 January 2022 of SEK 78.50 for Aspire Global’s share. The Bid Committee of Aspire Global unanimously recommends the shareholders of Aspire Global to accept the full cash consideration alternative of SEK 111.00 per Aspire Global share.

CEO COMMENTS

“WE HAVE SUCCESSFULLY DELIVERED ON OUR GROWTH STRATEGY AND EXCEEDED OUR FINANCIAL TARGETS”

Aspire Global has made an amazing journey in recent years with substantial organic growth supplemented by value creating acquisitions. NeoGames’ bid of SEK 111 per share means that our share has increased by 270% since the introduction on Nasdaq First North Growth Market in July 2017. The offer by NeoGames, a technology-driven provider of end-to-end iLottery solutions, is a natural step for Aspire Global and a strategic fit.

Aspire Global’s entire operations will form a new iGaming division within NeoGames. The objective of the combination is to generate significant long-term value for both sets of shareholders, by creating synergies and capitalizing on the key strengths of our two companies and positioning them both for expansion in new and existing markets.

We believe that the irrevocable commitment by a significant portion of our shareholders to elect to receive the entirety of the equity component of the deal, subject to proration, suggests strong conviction in the future of the two companies. Not only is this a strategic fit, it is also a strong cultural fit, as significant parts of both management teams worked together extensively during NeoGames’ inception.

RECORD HIGH B2B PERFORMANCE

By the divestment of our B2C segment 1 December 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 €158.3 million and EBITDA increased by 45.2% to €30.4 million 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.

We had a strong development during all quarters in 2021 and revenues, excluding B2C, increased 24.4% in Q4. The numbers in Q4 2021 were impacted negatively by new regulations in certain European countries as well as unusually favourable player results in Sports during October, while the inclusion of the divested B2C brands on a “net royalties” basis in December 2021 had a positive impact.

GERMAN AND DUTCH PLATFORM DEALS

We have recently made significant progress in the execution of our growth strategy by adding new tier 1-operators to our customer base and entering new regulated markets. Our turnkey platform deals with ITPS for Germany and BoyleSports for the Netherlands clearly shows the recognition we have in supplying our platform in regulated markets to tier 1-operators. Both Germany and the Netherlands are expected to become very big iGaming markets with a large growth potential.

At the end of 2021, we completed the migration of all major partner brands to BtoBet’s proprietary sportsbook platform and we could phase out our previous third-party supplier. The rapid execution of the migration is an important proof of Aspire Global’s strong technological, managerial and operational skills.

PARIPLAY – KEY PROGRESS IN NORTH AMERICA

Pariplay, the leading content and aggregator provider, shows over and over again its strengths by delivering successfully on its growth strategy. By striking important deals in North America, we are on our way to establish ourselves as a key iGaming supplier in this fast-growing market. Pariplay is now certified in Michigan, New Jersey and West Virginia and has signed deals for all three states with leading US operator Golden Nugget Online Gaming and the top-three US online casino operator BetMGM. Through the collaboration with NeoPollard Interactive, Pariplay will enter the Canadian market after signing a deal to offer its content on Play Alberta, the province’s only regulated online gambling site.

In Q4 2021, Pariplay extended its successful partnership with Rush Street Interactive (RSI) and launched its proprietary games with RSI in Colombia. Pariplay also signed a deal to supply its proprietary games to Holland Casino, the biggest Dutch operator.

BTOBET STRIKES FURTHER DEAL WITH FLUTTER

BtoBet, our proprietary sportsbook, has recently been awarded certification in Denmark and the Netherlands. After having received Dutch certification for not only the sportsbook and games but also the platform, we will now provide our complete offering in the Netherlands. In Denmark, we add sports to our present casino offering.

In Q4 2021, BtoBet entered Poland by a deal with Warsaw-based BestBet24. BtoBet will provide BestBet24 its sportsbook platform for both retail and online channels. BtoBet has also extended its collaboration with Flutter Entertainment by providing FanDuel its cutting-edge PAM platform as the operator enters the Brazilian market with its Daily Fantasy Sports (DFS) offering.

ENHANCING OFFERING WITH BINGO

In December 2021, we took an important step in our strategy to control the entire B2B value chain by acquiring a minority share of the bingo supplier END 2 END with an option to acquire all the shares. END 2 END and its certified bingo product provides us with access to a real omni channel technology and a proprietary offering in one of the biggest verticals in the iGaming industry. Bingo is especially important in regulated markets where operators request the opportunity to offer more than one vertical. We are very satisfied with END 2 END’s performance and the opportunities we have identified so far.

THE AMAZING ASPIRE GLOBAL TEAM

During 2021, we increased investments in the further development of our team’s skills by introducing an advanced leadership program. It will be exciting to follow the development of our leaders and how the program can contribute to even higher motivation and creativity.

I would like to take this opportunity to thank everyone on the Aspire Global team for their fantastic efforts in 2021. It is also good that we will keep the relationship with our great Karamba team, who constituted the B2C segment, as they continue as one of our major partners.

OUTLOOK

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 1-operators to our partner base, not at 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.

Tsachi Maimon, CEO

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Meridianbet’s Leadership in 2023: 61% of Top Managerial Roles Held by Women

Published

1 hour ago

May 7, 2024

GamingAmericas.com

meridianbet’s-leadership-in-2023:-61%-of-top-managerial-roles-held-by-women

In 2023, Meridianbet emerged as a contender for the most DEI-compliant betting and gaming brand globally, with women occupying 61% of its top managerial positions, marking a significant rise from 58% in 2021.

This achievement not only exemplifies Meridianbet’s commitment to gender equality but also sets a high standard compared to global diversity, equity, and inclusion benchmarks.

Gender equality at Meridianbet is a policy-driven initiative, not merely a compliance requirement, and it started from Day 1. The company ensures zero gender pay disparity, thereby supporting a complete eradication of the gender gap within its ranks. This commitment is manifested in its leadership demographics, significantly surpassing the most progressive DE&I standards globally.

The distribution of female management across Meridianbet’s operations varies by region, reflecting the company’s broad and inclusive reach. In Europe, 58% of managerial roles are held by women, while the Americas report a slightly higher figure at 60%. Africa stands out with an impressive 69%, showcasing Meridianbet’s effective policies in diverse cultural contexts.

Inclusion is deeply embedded in Meridianbet’s operational ethos. The company not only aims to attract the best global talent but also ensures that its recruitment and professional development strategies foster an environment where every employee, regardless of gender, feels valued, respected, and heard.

The forthcoming weeks are expected to provide more insights as Meridianbet prepares to share further achievements and plans in its continued pursuit of excellence in corporate responsibility.
Meridianbet is part of the Golden Matrix Group.

Gambling in the USA

BETTING HERO REVS UP COLLABORATION WITH NASCAR TO ENHANCE BETTING EXPERIENCE FOR RACING FANS

Published

2 hours ago

May 7, 2024

GamingAmericas.com

betting-hero-revs-up-collaboration-with-nascar-to-enhance-betting-experience-for-racing-fans

Betting Hero Research Uncovers Potential For Regional Betting Growth in the Sport.

Betting Hero, the leading customer acquisition, retention, and development partner for U.S. sportsbooks, has embarked on a consumer research collaboration with NASCAR to help the respective companies and their shared sportsbook operator clients better understand and serve North Carolina NASCAR fans with premium betting experiences.

Laying the foundation for continued fan engagement and future acquisition campaigns, Betting Hero has completed a research study, comprised of qualified bettors in the Tar Heel State to uncover their engagement preferences for NASCAR as both sports fans and bettors.

The study, which took place both online and in person in April 2024, shows a significant demand for NASCAR as a betting product in North Carolina. Respondents are almost three times more likely to bet on the sport than in previously surveyed states.

NASCAR ranked behind only the NFL, NBA, and MLB in betting activity by the study respondents, with 70% stating that they’ve watched a race for the first time because they’ve placed a bet on it.

“Having worked closely with NASCAR to educate its fans on the betting options available to them for several years, we have long believed in the opportunity to both attract new fans to the sport and better engage existing fans through thoughtfully curated betting experiences,” said Jai Maw, Co-Founder and President of Batting Hero.

Maw continued, ”As is shown in the North Carolina study conducted by our in-house consumer research division, there is a clear correlation between most fans’ enjoyment or engagement in a sporting event and their betting activity overall. However, NASCAR fans have to work a little harder than fans of other major sports to find their betting preferences due to less available markets and prop betting options on average. Those that can find their preferred betting markets could also be more likely to remain loyal to their sportsbook of choice than fans of other sports where available markets are somewhat commoditized.”

As a market audience, 86% of North Carolinians see betting as a true complement to sporting enjoyment. They’re also loyal and active bettors, with over half of respondents having downloaded three gambling apps and almost 90% still using their primary sportsbook after registration.

Significantly, certain sportsbooks surveyed showed a disproportionately high level of NASCAR betting activity compared to brand awareness in the target group, which could suggest that having a strong NASCAR betting offering is more important than other factors in the registration decision process.

“NASCAR has extremely passionate fans and we see sports betting as another way they can engage with sport,” said Joe Solosky, Managing Director of Sports Betting at NASCAR. “We are excited, but not surprised, to see the success of NASCAR as an offering through the launch of sports betting in the industry’s backyard of North Carolina and are continuing to better improve the NASCAR betting product to give fans more options to responsibly engage with action on the track. The study discovered that 70 percent of respondents watched a race for the first time because they placed a bet on it, and it shows that our efforts in the space can attract new fans as well.”

North Carolina has quickly risen to the top tier of states for NASCAR betting volume, ranking among the top three states in its first two months since launch. Across the 20 states that were live in March and April of 2023, NASCAR’s handle has seen a substantial 15% year-over-year growth. In states like Illinois, Massachusetts, Michigan, and Mississippi, NASCAR’s handle has surged by at least 50% compared to the previous year. Even more impressively, in Nevada and New York, NASCAR’s handle has doubled year over year, indicating a significant increase in interest and betting activity in these regions.

Resident Culture Bar & Kitchen will be hosting a NASCAR post-party on Saturday, May 25th, for the Xfinity race the weekend of the Coke 600 and a Race Watch party for the Cup Series Coke 600 on Sunday, May 26th. Betting Hero‘s team of experts will be in attendance to help answer any sports betting-related questions for fans and patrons while ensuring all enjoy their experience betting on NASCAR responsibly.

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BetSocial amplifies impact of Autism Awareness Campaign through partnership with AFETO Association

Published

3 hours ago

May 7, 2024

GamingAmericas.com

betsocial-amplifies-impact-of-autism-awareness-campaign-through-partnership-with-afeto-association

Betmotion is pleased to announce that BetSocial, its Corporate Social Responsibility project, has achieved significant success in its recent autism awareness campaign in partnership with the AFETO Association.

For the second consecutive year, this collaboration has not only promoted awareness of autism but also raised significant funds to support children and adolescents with Autism Spectrum Disorder (ASD).

BetSocial’s initiative demonstrated Betmotion’s commitment to social impact, highlighting its role in promoting community well-being. Over three days, the “Cofrinho Solidário” bingo room was the hub of activities, where 100% of the proceeds from sold bingo cards were directly reverted to the AFETO Association. This year, the campaign doubled the funds raised compared to the previous year and significantly increased card sales, demonstrating a growing community engagement.

“BetSocial was created to broaden our social action and strengthen the communities we interact with,” said Bianca Passos, Bingo Manager and one of the founders of BetSocial. “This campaign reflects our commitment to not only entertain but also positively contribute to society. We are thrilled with the support received and the results achieved, and this only reinforces the importance of initiatives like this.”