Widespread segment growth pushes revenue and profit up at Aspire in Q3

Revenue for the three months to 30 September was €58.6m (£49.7m/$67.8m), up 46.0% from €40.1m in the corresponding period last year and a record quarterly total for the supplier.

B2B revenue increased 45.0% year-on-year to €42.6m, or 39.6% to €38.7m when excluding inter-segment revenue. Aspire put this rise down to continued good business momentum in all B2B segments and the acquisition of BtoBet in Q4 2020.

Key developments in Q3 that helped drive B2B growth included new platform deals with JNS Gaming, which will launch a new casino and sports brand later this year, and also Esports Technologies, which will migrate its Gogawi.com brand Gogawi.com to Aspire’s platform, with the aim of launching another brand in the future.

Aspire also noted growth within its Aspire Core sub-segment, with revenue here up 24.8% to €32.0m and 21.8% to €29.0m excluding inter-segment revenues from Q3 2020, while revenue in the Pariplay sub-segment increased by 66.5% to €7.8m. 

Looking at B2C and revenue here climbed 60.4% year-on-year to an all-time high of €19.8m. Aspire said this growth was driven by good performances across all brands and helped by the launch of new sports betting brand BetTarget launched on BtoBet’s platform, as well as the roll-out of a new Hopa native app and affiliate program platform.

Shortly after the end of the quarter, Aspire announced an agreement to sell its B2C segment to US-based Esports Technologies following a review of the business that was announced in March. 

Announced on 1 October, the deal is worth $75.9m is expected to close by the end of this month.

“With the sale of the B2C segment, Aspire Global will become a clearly focused B2B company and even stronger and more profitable,” Aspire chief executive Tsachi Maimon said. “The sale will also give us additional resources to further develop and enhance our B2B offering as well as the opportunity to explore new M&A activities.

“The sale of the B2C segment will have a significant positive impact on Aspire Global’s position as a focused B2B company and profitability.”

In terms of geographical performance, the UK and Ireland was Aspire’s leading market with €22.7m in revenue, up 151.0% year-on-year. Rest of Europe revenue dipped 8.3% to €22.5m, but rest of World revenue rocketed 206.8% to €8.1m and Nordics revenue climbed 34.5% to €5.2m.

Turning to spending and operating expenses for Q3 reached €49.4m, up 52.5% year-on-year, while amortisation and depreciation costs climbed 37.5% to €2.2m and finance expenses 18.2% to €1.3m.

However, the significant increase in revenue meant pre-tax profit jumped 79.5% to €7.0m, while earnings before interest, tax, depreciation and amortisation (EBITDA) was 37.9% higher at €9.1m.

Aspire paid €593,000 in tax and after also accounting for €428,000 in losses from its share in associated companies, this left a net profit of €6.0m, up 71.4% year-on-year.

Looking at Aspire’s performance in the nine months to the end of September, total revenue was 38.2% up to €162.4m.B2B revenue was 36.2% higher at €118.9m and B2C revenue jumped 49.9% to €55.0m.

Group operating expenses were up 39.0% to €131.9m, while amortisation and depreciation costs hiked 41.9% to €6.1m, but finance expenses were reduced by 24.4% to €3.4m.

Pre-tax profit was 84.4% higher at €21.2m, while EBITDA increased 46.3% year-on-year to €27.5m.

After accounting for €1.8m in tax payments, a €1.0m loss from Aspire’s share in associated companies, this left a net profit of €18.3m, an increase of 81.2% on last year.

“Aspire Global has consistently demonstrated its ability to execute its growth strategy, reaching its financial targets and create value,” Maimon said. “We see great growth opportunities by expanding with existing partners, gaining new partners and entering new markets. 

“With the divestment of the B2C segment we will further enhance investments in our technology and product offering as well as geographic presence with focus on Brazil and the US. We will also put even more energy on increasing the M&A pipeline. 

“We clearly execute our growth strategy to become a world leading igaming supplier.”