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Aspire Global: Interim Report Fourth Quarter 2021

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Record High Revenues of €213 Million in 2021

FOURTH QUARTER*

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

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·        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%)

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·        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*

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·        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%).

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·        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.

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*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.

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·        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.

 

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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.

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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.

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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

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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

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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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Slotegrator’s review of the first half of 2024 in iGaming: results & trends

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Since the beginning of 2024, content aggregator and solution provider Slotegrator has been analyzing case studies and conducting careful research. Why did the company choose this development path? What results have been achieved, and what can be expected in the future? It’s time to take a look at how 2024 is going — and maybe get a sneak peek at 2025.

Since the beginning of the year, Slotegrator has continued to actively present its new and updated solutions, like the company’s turnkey online casino platform and its key modules, including the KYC, BI, and Casino Builder modules, alongside many others. These modules are strategically designed to streamline online casino management, covering tasks like analyzing big data, assessing risks, and enhancing platform performance.

The modules have proven to be very effective, partially because they satisfy clients’ concrete needs. The primary sources of inspiration for these cutting-edge innovations are the company’s internal research and case studies of successful clients.

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According to Slotegrator’s internal research, clients reported that the integration of these updates came at just the right time. Customers particularly valued the revamped player segmentation module, offering customization options and personalized marketing options, and a renewed anti-fraud module that utilizes a color-coded risk scale that allows operators to set risk levels.

“This feedback from our customers is a great foundation for Slotegrator’s future report on future iGaming trends in 2025. We’re constantly collecting and updating information on new technologies, game types, payment methods and player behavior, and honest feedback on the new features of upgrades helps us understand the direction of our future development,” comments Yana Khaidukova, managing director at Slotegrator.

Innovation is key to keeping up with the fast-paced iGaming industry. In 2024, the Slotegrator team is focused on enhancing product quality and publishing insightful case studies to better demonstrate the capabilities of its products. So far, Slotegrator has published multiple case studies analyzing its clients’ success. Here are the two latest examples:

 

When it comes to modern iGaming trends, many of them haven’t changed — we should expect to see more VR integration in esports, AI, blockchain, and cryptocurrency adoption. Also, mobile-first gameplay will be a new standard. The Slotegrator team has also noted an increasing emphasis on responsible gaming throughout the iGaming industry. Slotegrator keeps all of these in mind when entering attractive markets with new partners — especially those in Latin America and Asia.

 

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What about licenses? Slotegrator recommends keeping up to date with licensing conditions. Among the most promising jurisdictions are:

  • Kahnawake
  • The Isle of Man.
  • Anjouan

Faruk Aydin, Chief Revenue Officer of Revpanda, a Slotegrator’s media partner, adds to the list of trends some points about promotion on the iGaming industry: “Within the first half of 2024, we’ve seen that human-written content has made a great comeback, thanks to Google’s recent core update. It has started to remove AI-written shallow content across the entire SERPs, and the SEO community expects this trend to continue. Overall, we can say that the first half of the year strongly demonstrates Google’s effort to fill the SERPs with high-quality, engaging, local, and relevant content, avoiding fluff and providing the most useful resources to people.”

William Sarto, PR & Marketing specialist at CasinoRIX or CasinoRIX team, comments:

“In recent months, Google has undergone several significant changes due to a major update that started in March and ended in April. Then, at the beginning of May, they launched another big update. We’ve already seen many affiliate sites affected by this, particularly those that overused AI-generated content. AI has become mainstream, so it’s important to integrate it into processes based on thorough market analysis and real statistical data.

Moreover, there’s a clear trend towards creating projects that offer additional value for players and partners. It’s crucial to build a brand, not just a network of sites, and to add values into what you create while striving to meet customer needs. We fully agree with the earlier comments that in-depth analysis and staying in tune with trends will lead to success and growth. As we can see, all major and well-known projects are steadily growing with these updates.”

The post Slotegrator’s review of the first half of 2024 in iGaming: results & trends appeared first on European Gaming Industry News.

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NFTs and the future of fan engagement: How NFTs can boost engagement with sports brands

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By: Evgeniy Babitsyn, Chief Marketing Officer, Bets.io

The sport industry finds itself amidst its own digital transformation journey with the introduction of new technologies, and at the forefront of this digital shift are NFTs – otherwise known as Non-Fungible Tokens.

NFTs can represent any kind of digital item, and in recent years have commonly been used for quirky collectibles and art work – but they now enter the sports arena in a unique way. The beauty of NFTs is the unique metadata and ownership information which is tracked via blockchain, making them a one-of-a-kind digital collectible that cannot be duplicated. As a result of their collectible nature, it’s only natural that NFTs caught the eyes of eager sports enthusiasts and die-hard fans.

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In fact, according to Deloitte research, around 40% of Gen Z and millennial sports fans are at least somewhat familiar with the use of NFTs and fan tokens in sports.

But why is that? And how can they boost engagement?

NFTs are rapidly emerging as a powerful tool for sports brands in driving deeper fan engagement and unlocking new revenue streams. This is because sports fans are, by nature, competitive and eager to own exclusive content from their much loved players, teams and brands. They want to be part of the action.

By playing on this feeling, and reinforcing loyalty among fans in this way, sports brands have a huge opportunity to take their revenue streams to new heights and gain a competitive advantage over other brands.

Imagine an athlete releases a limited-edition NFT that represents the most iconic moment in their career, such as the winning shot or a record breaking performance. Fans who own that NFT can then access exclusive content related to that moment including behind-the-scenes footage or interviews.

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There really is no limit to these tokens, and depending on the asset, they can be much sought after. As more and more sports fans embrace the digital tokens, sports brands are quickly learning that there is huge potential for fan engagement, if they continue to innovate with this technology.

 

Taking collectibles to the 21st Century

Sports memorabilia and collectibles have for centuries been a way for fans to feel more connected to their favourite teams and athletes. And now thanks to the advances of technology – more specifically, blockchain technology – fans can collect within the digital realm, gaining access to truly “own” unique digital items and experiences.

Beyond just digital art or collectibles, NFTs can also integrate the idea of gamification, exclusive content and experiences into their NFTs – allowing fans to engage more actively while unlocking new revenue opportunities.

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The possibilities are endless, extending far beyond just digital collectibles. They can provide fans with access to exclusive digital or in-person experiences, events and merch as well. Think front row seats or the chance for a meet and greet post-game.

With this, NFTs provide an excellent way for brands to diversify their revenue streams by monetising their content and intellectual property strategically.

It really is win-win, fans can own a piece of their favourite team’s history while supporting their team financially. And sports brands can benefit from more loyal fans.

 

Transforming the fan experience

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Engagement is everything to sports brands. After all, the fans are really the most important stakeholders in the end. And offering NFTs can be a powerful tool in fostering deeper engagement within fan communities. NFTs provide more innovative ways for fans to connect, prove their loyalty and gain recognition for their allegiance.

Let’s look at NBA Top Shot. NBA Top Shot is the perfect example of a blockchain-based platform that allows fans to own and collect officially licensed NBA collectibles digitally. The platform offers exclusive collectibles including videos of the biggest NBA moments and highlights.

And football teams are also following suit. Manchester City, PSG, FC Barcelona have all joined in on the NFT hype – offering their own NFT collections for keen supporters such as worn jerseys, trophies and more.

 

Sports Betting and NFTs

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And when it comes to sports betting, NFTs take the iGaming experience to the next level. Fans can purchase NFTs that represent specific bets, such as the winner of a particular game or the performance of a specific player. These NFTs can then be traded or sold, just like other NFTs, providing a new level of flexibility and excitement for betting.

The use of NFTs in the sports industry is still in its early stages, but has already shown great potential. We can expect more applications to come in the world of sports – including at Bets.io. Watch this space.

Looking ahead, the future is incredibly promising for sports brands who leverage NFTs within their business operations. Those who embrace these new powerful ways to inspire fans and forge deeper relationships with their communities, will see their efforts translate into business value.

The post NFTs and the future of fan engagement: How NFTs can boost engagement with sports brands appeared first on European Gaming Industry News.

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Raketech Announces Q1 2024 Results

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Raketech has announced its Q1 2024 financial results.

Q1 2024 Financial Highlights

  • Revenues in Q1 of 2024 totaled EUR 19.0 million (EUR 15.8 million), reflecting an organic growth increase of 20.1% (24.4%), driven by continued strong performance from sub-affiliation partially offset by weaker-than-expected results within affiliation marketing.
  • EBITDA, adjusted for restructuring costs, was EUR 5.1 million (EUR 6.1 million), impacted by a weaker performance in Sweden compared to the previous year and soft performance of the Casumba assets following the Google Core update during the quarter. Other regions and products performed well, with sub-affiliation delivering a strong quarter in terms of EBITDA contribution.
  • Operating profit, adjusted for costs related to re-structuring, amounted to EUR 2.0 million (EUR 3.8 million).
  • Free cash flow before earnouts increased to EUR 6.5 million (EUR 5.6 million) with a positive working capital development from trade receivables.
  • Earnouts settled during the quarter amounted to EUR 13.0 million.

Full-Year Outlook

Current trading, including April, implies an adjusted EBITDA of around EUR 20.0 million for the full year. Free cash flow before earnouts for the full year is estimated to come in just below adjusted EBITDA.

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Subsequent Events After the End of the Period

On May 14, 2024, the board decided to withdraw its previously announced proposal to distribute dividends in 2024, in line with its commitment to maintaining financial flexibility and supporting the company’s long term growth ambitions. The primary focus is delivering value to shareholders and continuing to evaluate opportunities to enhance shareholder returns in a way that aligns with the Company’s long-term value-creation objectives.

Current Trading

Revenues in April 2024 amounted to EUR 5.9 million (EUR 5.9 million).

Raketech Acting CEO Johan Svensson said: “In the first quarter of 2024, we delivered EUR 19.0 million in revenues, representing an organic increase of 20.1%, primarily driven by Sub-affiliation. Adjusted EBITDA came in at EUR 5.1 million, while EBITDA was EUR 4.3 million, consistent with our trading update published on 1 May. We remain confident in our market-leading product offerings and see promising growth opportunities through our strategic initiatives in sports offerings, exclusive partnerships, and media deals. These efforts will position us well for continued growth in the coming years, and we remain committed to maximizing shareholder value.”

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The post Raketech Announces Q1 2024 Results appeared first on European Gaming Industry News.

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