Aspire Global Sees Q1 Revenue Increase, but Drop In Profit
Gaming company Aspire Global has provided its latest financial health report. Although the first quarter delivered improved revenue, the company’s bottom line fell as profits continue to drop.
Aspire Global is still enjoying “strong business momentum” as it completes the first quarter of 2022. The international B2B gambling company recorded an increase in revenue of 31.7% as it reached €46.3 million (US$48.7 million) for the quarter.
This was a substantial improvement over the €35.2 million (US$37.1 million) in the first quarter of last year. However, it wasn’t enough to push the bottom line upward.
The update represents Aspire Global’s second quarter as a B2B-focused business. It comes after the sale of its B2C operations to Esports Technologies in October of last year for a total of $75.9 million. However, it acknowledges that more work needs to be done.
Aspiring to be Better
After optimizing its operations as a B2B company, Aspire Global secured growth in several European and North American markets. This was possible, in part, by obtaining a license for its full offering in the Netherlands, as well as a new agreement between its BtoBet brand and BoyleSports in that country. BtoBet saw an increase in revenue of 88.3% in the first quarter.
BtoBet has also expanded its presence in the Danish and German sports betting markets. In addition, in the eSports space, it signed with WIN Group.
In the North American market, Pariplay linked up with Golden Nugget and Alberta Gaming. It also obtained licenses in Ontario, Canada, and Michigan following GLI-19 certification in Canada and the US.
We have continued strong business momentum and the quarterly performance demonstrates once again the strengths of our offering and the capabilities of our highly motivated team. Aspire Global set new records in the quarter with revenues of €46.3 million and EBITDA of €8.2 million,” stated Aspire Global CEO Tsachi Maimon.
EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 18.7% to €8.2 million (US$8.63 million). This is a slightly lower EBITDA margin of 17.8% compared to 19.2% a year ago.
Profit after tax increased by 4.7% to €4.8 million (US$5.05 million). At the same time, earnings per share remained the same at €0.10 (US$0.11). After making all final adjustments, the bottom line was a net profit of €4.8 million (US$5.06 million). This is 20% less than the first quarter of last year.
Stronger Days Ahead
Regional considerations will help the company improve, according to Maimon. He singled out Pariplay’s strong presence in North America, where it has closed multi-carrier deals. These precipitated 39% revenue growth for the brand.
Aspire Global’s main asset is long-term commitment to its partners. At the top of our agenda is always the success of our partners and our ability to support in the development of their potential. Through our strong partnerships with leading operators and distributors, we will continue to generate long-term value,” added Maimon.
However, Aspire Global’s boss also reiterated that the company had terminated its contract with the operator of the Russian National Lottery Sports Lotteries LLC. This was the result of the illegal invasion by Russia of Ukraine, which led to a number of gaming operators leaving the country. However, the conflict also impacted Aspire Global’s operations in Ukraine, where it employs over 118 people.
There’s another deal still on the table that Aspire Global is working on. NeoGames, which operates online lottery games in various markets, offered to buy the company for $480 million in cash and equity at the beginning of the year.
Aspire Global’s board has already approved the deal. The two entities are now busy securing all necessary regulatory permissions and approvals to complete the transaction. That could happen in the second or third quarter of the year.
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