Aspire Global achieved peak earnings in the initial three-month period, with a strong emphasis on its business-to-business operations.
The organization attained peak earnings in the first three months of its financial year after divesting its business-to-consumer operations.
Earnings for the three-month period concluding on March 31, 2022, were €46.3 million (£39 million/$48.7 million), a 33.4% rise year-over-year, setting a new quarterly record.
Aspire stated that all its segments witnessed robust year-over-year growth, with its Aspire Core platform and managed services operations generating earnings of €34 million, a 24.8% increase. The organization attributed this to ongoing enhancements to the Aspire Core platform and the new AspireEngage customer relationship management system.
Earnings from Pariplay’s aggregation and gaming operations also expanded by 38.5% to €9 million, driven by 17 new operator agreements signed in the quarter, while BtoBet’s sports betting operations observed earnings rise by 88.3% to €4.4 million.
Geographically, the United Kingdom and Ireland remain Aspire’s primary markets, with earnings in the region reaching €21.3 million, a 101.6% increase year-over-year. Earnings in the remainder of Europe declined by 21.7% to €13.2 million, while earnings in the rest of the world grew by 72.2% to €8.8 million, with Nordic earnings up 14.8% to €3 million.
Aspire achieved some advancements in the initial period, encompassing a public proposal by NeoGames, an online lottery platform provider, to acquire the entirety of the company for 4.3 billion Swedish kronor. This agreement could be finalized before the conclusion of the first half of this year.
During the same period, Aspire obtained complete authorization to operate in the Netherlands, enabling it to introduce its player account management platform solutions, sports betting, and casino games throughout the Netherlands.
Regarding costs and operational expenditures, these escalated by 37.1% to €38.1 million in the quarter, with increases in distribution expenses, gaming taxes, and administrative expenses.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded by 18.8% to €8.2 million, and after accounting for €2.7 million in depreciation and amortization, operating profit reached €5.6 million, a 14.3% year-on-year increase.
Aspire also recorded €1.6 million in interest income and foreign exchange gains, partially offset by €487,000 in financial expenses. Consequently, profit before tax attained €6.7 million, a 28.9% surge compared to the preceding year.
The developer paid €570,000 in income tax and reported a loss of €1.4 million from associated companies. This resulted in a net profit of €4.8 million, a 20.0% decline from the previous year, although Aspire noted that the figures for the initial period of 2021 incorporated €1.4 million in capital gains and discontinued operations.
These discontinued operations primarily encompassed Aspire’s B2C business, which was sold to Esports Technologies in October.
Aspire Global’s leader, Tsachi Maimon, stated: “We have sustained robust business activity, and this period’s outcomes once again exhibit the power of our offerings and the expertise of our highly competent team.”
“Aspire Global established new benchmarks this quarter, with income reaching €46.3 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) at €8.2 million. I am particularly pleased with our advancements in North America and regulated European markets, where we have added top-tier operators to our customer list and secured additional accreditations.”
Maimon also addressed the proposed acquisition of NeoGames, labeling it a “natural progression” for Aspire and a strategic alignment for the enterprise.
“As part of the NeoGames group, Aspire Global will continue to utilize its core strengths,” Maimon remarked. “Besides cutting-edge, technologically advanced products and a skilled workforce, Aspire Global’s most valuable asset is its long-standing dedication to partners.
“We consistently prioritize our partners’ success and our capacity to assist them in realizing their full potential. Through robust collaborations with leading operators and distributors, we will continue to generate long-term value.”
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