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Aspire 2021 revenue grows year-on-year amid NeoGames offer

| By Nosa Omoigui
Aspire Global has recorded revenue figures of €213.3m (£178.1m/$242.3m) for 2021, representing a 31.8% increase on the previous year.
Better Collective

The financial results follow online lottery platform provider NeoGames submitting an SEK4.3bn (£349.0m/€417.6m/$476.0m) offer to acquire 100% of Aspire Global’s shares.

Following the publishing of the offer document detailing the proposals, which is expected in April, an acceptance period will run until 3 May. The deal is expected to be completed during the first half of 2022.

The revenue figures reported include the company’s B2C continued operations. In December, Aspire reached an agreement with Esports Technologies to sell off these B2C assets in a $75.9m deal.

The majority of the revenue total, €118.3m, came from Aspire’s core platform business. €30.0m came from its B2B games business, driven by the 2019 acquisition of Pariplay, and the sports segment under the BtoBet brand added a further €11.3m.

As a result, revenue from the continuing B2B business would be €157.4m, while B2C operations generated €64.6m.

After accounting for €3.1m of EU VAT, net revenues for the year for the group including the B2C segment came to €210.2m.

Operating expenses for the year totaled €175.2m. Of this total, distribution costs were €138.1m, gaming duties came to €15.9m, while adminsitrative expenses were €21.2m. Amortisation and depreciation costs added a further expense of €35.0m.

As a result, pre-tax income for the year came to €26.4m, up from €16.4m in 2020. Factoring in €2.2m worth of income tax, net profit for the year totalled €24.1m – a 60.7% increase from the year before. If the B2C segment is excluded, net profit was €19.8m.

For the fourth quarter of 2021, net revenue for the company amounted to €50.9m, up 14.6% from the corresponding period in 2020. The core business generated €28.2m during the quarter, games added €7.5m, sports contributed €3.5m, while B2C operations raised €11.8m. Without B2C revenue, the total for the fourth quarter amounted to €39.1m.

Fourth quarter expenses came to €43.3m, while amortisation and depreciation costs added a further expense of €2.4m. Net profit for the quarter was €4.8m, up from €4.2m in the fourth quarter of 2020.

2021 saw Pariplay expand across the US, gaining a supplier licence in West Virginia. During the fourth quarter, Aspire also reached a deal to acquire a 25% stake in bingo supplier End 2 End.

Aspire-owned Sportsbook provider BtoBet was also able to expand into Poland, reaching an agreement to power BestBet24’s new sportsbook.

Aspire CEO Tsachi Maimon said: “We had a strong development during all quarters in 2021 and revenues, excluding B2C, increased 24.4% in Q4.

“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 at least after the value-creating acquisitions of BtoBet and Pariplay.”

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