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Aspire Global Full Year and Fourth Quarter 2020 Results

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RECORD HIGH REVENUES AND EBITDA IN Q4 AND FULL YEAR 2020

FOURTH QUARTER

  • Revenues increased by 37.6% to €44.4 million (32.2).
  • EBITDA increased by 89.9% to €8.3 million (4.4).
  • The EBITDA margin increased to 18.6% (13.5%).
  • EBIT increased by 100.4% to €6.3 million (3.1).
  • Earnings after tax increased to €4.2 million (-11.6).
  • Earnings per share, basic and diluted, amounted to €0.07 (-0.26).
  • First time depositors (FTDs) increased by 0.3% to 105.9 thousand (105.6).

FULL YEAR

  • Revenues increased by 23.2% to €161.9 million (131.4).
  • EBITDA increased by 24.8% to €27.1 million (21.7).
  • The EBITDA margin increased to 16.7% (16.5%).
  • EBIT increased by 17.3% to €20.8 million (17.7).
  • Earnings after tax increased to €15.0 million (1.9).
  • Earnings per share, basic and diluted, amounted to €0.28 (0.01).
  • First time depositors (FTDs) increased by 16.9% to 519.9 thousand (444.5).

SIGNIFICANT EVENTS IN THE QUARTER AND AFTER THE END OF THE QUARTER

  • Revenues increased 37.6% from Q4 2019 driven by strong development in the B2B segment and acquisition of leading sportsbook provider BtoBet in September 2020.
  • Organic growth of 30.8% from Q4 2019.
  • B2B revenues grew 44.7% from Q4 2019 with an organic growth of 35.1%.
  • Record high revenues and EBITDA in Q4 and full year 2020 driven by organic growth and acquisitions.
  • In January total trading volumes increased to approximately €15.0 million, which is about 34% higher than the average monthly trading volume in Q1 2020.
  • New markets entered – Spain, Russia and West Virginia.
  • Pariplay’s games launched by Rush Street Interactive (RSI) in New Jersey.
  • Partnerships in Latin America with William Hill and Betfair.
  • Pay N Play solution launched and live with five operators.
  • Repayment of bond due in April 2021 is secured. As a consequence of the repayment, the Board proposes to the AGM that no dividend is paid out for the financial year 2020. The Board is committed to the long-term dividend policy to distribute dividends annually in an amount of at least 50% of the Company’s net profits after taxes and expects to be able to propose a dividend for the financial year 2021.
KEY FIGURES
€ million, unless other stated FOURTH QUARTER FULL YEAR
2020 2019 2020 2019
Revenues 44.4 32.2 161.9 131.4
EBITDA 8.3 4.4 27.1 21.7
EBITDA margin, % 18.6 13.5 16.7 16.5
EBIT 6.3 3.1 20.8 17.7
EBIT margin, % 14.2 9.8 12.9 13.5
EPS, basic and diluted, € 0.07 -0.26 0.28 0.01
Operating cash flow 11.5 -11.5 27.7 2.5
Company hold, % 46.6 49.6 48.1 52.0
FTDs, thousand 105.9 105.6 519.9 444.5

 

CEO COMMENTS

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“OUR POTENTIAL FOR FURTHER GROWTH IS HUGE”

We have succeeded in establishing Aspire Global as a powerhouse for iGaming operators and see great opportunities for continued profitable growth. Our recent wins with tier 1 operators, our broad geographic footprint in four continents and outstanding offering provide us with a solid base for further expansion. In 2021, our top priorities are to roll out our sports offering in Europe, Africa and Latin America, and to certify the sports platform for future US deals.  This will enable us to continue to grow our customer base with tier 1 operators and to build a strong market presence in the US.

Revenues were record high in the fourth quarter and increased by 37.6% to €44.4 million from Q4 2019 with good growth across all segments. The organic growth in the quarter amounted to 30.8% from Q4 2019. It’s promising to see the strong development for our games and sports offerings. Our subsidiaries for games and sports – Pariplay and BtoBet – both reported all time high revenues in the quarter. The B2C segment also reported a strong quarter with record high revenues, up 29.0% from Q4 2019.

IMPROVED PROFITABILITY
Profitability continued to improve steadily which demonstrates our ability to grow in locally regulated markets while maintaining good margins. EBITDA increased by 89.9% to €8.3 million from Q4 2019 and the EBITDA margin raised from 13.5% to 18.6%. This is a solid performance taking into account that the revenue share from taxed and locally regulated markets increased from 66% in Q4 2019 to 70% in Q4 2020.

BIG POTENTIAL IN SPORTS
The acquisition of the leading B2B sportsbook provider BtoBet in September has already turned out to be a strategic strength to us. Prior to the acquisition sports represented a minor part of Aspire Global’s revenues. With our new proprietary sportsbook we see fantastic growth opportunities in European markets such as Germany and the UK along with the US and Latin America. We have license application processes going on and we aim to introduce our proprietary sports offering in time for the European Championship in key markets.

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During the quarter BtoBet has shown great success in signing tier 1 operators such as Betfair in Colombia and William Hill, also in Colombia. These partnerships in Latin America significantly strengthen our position in this big continent.

BREAKTHROUGHS IN THE US
The US market represents another important growth potential for Aspire Global. Pariplay – our leading game studio and games aggregator – recently announced its partnership for games with Rush Street Interactive (RSI), a market leader in online casino and sports betting in the US. RSI has already launched a selection of Pariplay’s high-quality online casino games in New Jersey which is a breakthrough for us into the regulated US market. In January, Pariplay received an interim iGaming supplier license for West Virginia, which marks another significant progress in the US.

We have high expectations for the US market and are building an organisation in the US to support Aspire Global’s expansion in this big market. As a first step, we are recruiting a managing director and a sales director for Aspire US. Aspire Global has also filed applications in Pennsylvania and Michigan with the objective to file in all accessible states. It’s an important advantage when we now address US operators that our complete iGaming offering includes the new sports platform.

ENTERING NEW MARKETS
In the quarter, Pariplay also made significant progress in Europe by entering new regulated markets. I’m happy to see Pariplay’s new partnership with 888casino in Portugal and Spain and how Pariplay further cemented its leading position in Switzerland by a deal with the market leader Swiss Casinos.

LEADING TECHNOLOGY
The Aspire Global technology has been developed throughout the years and we have gained deep knowledge of the complexities in the iGaming industry. We are not only technology experts; we are mastering the whole iGaming value chain. At Aspire Global, we combine broad industry experience with leading technology and knowledge in marketing as well as gaming behaviour and player protection.

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In the quarter we launched our first Pay N Play operators in Finland which became an immediate success. We are already live with five operators and with the Pay N Play solution they now provide quicker registration, login and instant deposits and withdrawals.

We have also introduced Aspire Engage, the most advanced CRM tool in the market. In addition, our organisation has secured the needed adjustments in Germany, following the new regulations.

TIER 1 OPERATOR WINS
When summarizing the quarter, I would like to single out the tier 1 global operator wins as the most significant from a growth perspective. These deals prove that Aspire Global’s offering is competitive and best-in-class. I’m convinced that the significant partnerships with Rush Street Interactive (RSI), Betfair, William Hill and 888casino among all will open up for new opportunities on many other playing fields.

I’m also happy to see the energy and focus in the management team. In the quarter we have strengthened the team with top talents from the iGaming industry, namely Antoine Bonello from William Hill as COO and Paul Myatt as Chief Business Development Officer. Paul joined us from QuickSpin and has previous experience from among all NetEnt. Aspire Global’s previous COO Dima Reiderman has been appointed COO at BtoBet.

OUTLOOK
Over the past twelve months we have created a new Aspire Global and established the company as a powerhouse for iGaming operators. I dare to be bold and say that Aspire Global has unique assets that give the company a strong position with huge growth potential.

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Prior to the acquisitions of BtoBet and Pariplay, Aspire Global was a European focused company with revenues mainly from casino. Today Aspire Global is present in four continents and we provide a complete, leading iGaming offering with proprietary games and games aggregation along with a sportsbook, gaming platform and managed services. This is key to our partners when they develop their expansion plans and provides us with competitive advantages.

The year 2021 has started in a good way and in January total trading volumes increased to approximately €15.0 million, which is about 34% higher than the average monthly trading volume in Q1 2020.

Finally, I would like to thank all my co-workers for the energy, passion and professionalism you have demonstrated during the challenging year with the pandemic. I look forward to continuing our inspiring work in realizing our vision to become the world’s leading iGaming supplier.

Tsachi Maimon
CEO

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SIS and Premier Greyhound Racing reveal improved greyhound race time schedule

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Sports Information Services (SIS), the leading multi-content supplier of 24/7 live betting services, and Premier Greyhound Racing (PGR), the media rights company supplier of greyhound racing to the betting industry and direct to viewers, have collaborated to offer a revised race time schedule starting from 20 May.

Designed to protect the long-term future of UK greyhound racing, the new schedule will see morning fixtures start slightly later – moving from 10.47 to 11.01 and 10.54 to 11.09. Additionally, there will also be a slightly later start time for some evening fixtures aimed at a retail audience, with the first evening fixture now starting at 18.08.

Commenting on the improved schedule, Terry Mahoney, Head of Business Development at ARC, said: “The new race times will help make it easier for customers to navigate busy racing schedules as well as improving operations trackside. We will continue to listen, monitor, and adapt schedules where and when needed as we move forward to deliver the best service possible for betting operators as well as punters.”

Paul Witten, Managing Director at SIS, added: “We are passionate about delivering a greyhound racing service that benefits all of the sport’s stakeholders. Together with Premier Greyhound Raxing, we have introduced a revised racing schedule that benefits operators and their customers.

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“Our approach to greyhound racing is grounded in sustainability and flexibility. This collaboration with fellow service providers allows everyone to enjoy all the high-quality action produced on a daily basis from tracks across the UK and Ireland.”

SIS has long-term agreements in place with bet365, William Hill, Paddy Power and Betfred to deliver its greyhound content across UK and Irish retail and digital channels. SIS also promotes this content across dozens of leading international operators, as well as through SISRacing.tv.

PGR offers greyhound action, cards, video replays, results, news and info on greyhounds.attheraces.com, and regular live broadcasts on Sky Sports Racing. Premier Greyhound Racing is a joint venture between Arena Racing (ARC) and Entain, the global sports betting, gaming and interactive entertainment group. Between them, the two companies own nine of the 20 licensed British greyhound tracks and ARC manage the media rights for five independent tracks.

The post SIS and Premier Greyhound Racing reveal improved greyhound race time schedule appeared first on European Gaming Industry News.

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The Importance of Data Quality Review Checks in the Gaming Industry

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By Lorenzo Nardini, Head of Technical Compliance and Maths Services

In the dynamic world of online gaming, data plays a pivotal role. Databases containing personal and financial information, often referred to as “Safe” databases, serve as the backbone of any gaming platform.

In this short article, I focus on control databases (CDBs) – that is how Safe databases are referred to in the Dutch landscape – and why it is important to ensure their completeness, accuracy, and consistency through continuous data quality review. In any case, the topics here covered apply to most regulated markets.

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Control databases contain critical information related to player accounts, financial transactions, game rules, and security protocols. Essentially, they ensure the smooth functioning of the entire gaming ecosystem. It is no wonder that the Dutch regulator (KSA) enforces specific technical regulations on them and often perform audits on these systems that can result also in fines in cases errors are detected.

Data quality review checks

Data quality review checks play a pivotal role in maintaining the integrity of control databases, ensuring continuous compliance. Here are some key reasons why they are essential:

  1. Accuracy and Consistency: Control databases handle vast amounts of data, including player profiles, game logs, and financial records. Ensuring accurate and consistent data is crucial for fair gameplay, financial transparency, and regulatory compliance.
  2. Player Experience: Imagine a player losing progress due to a database glitch or loss of connectivity. Such incidents can lead to frustration and loss of trust. Data quality checks ensure that the control database is correctly functional, and the information therein contained can be used to handle such incomplete games, enhancing the overall player experience.
  3. Regulatory Compliance: Gaming companies must adhere to strict regulations regarding data privacy, security, and fairness. Regular reviews ensure compliance with industry standards and legal requirements.

Most importantly, regular reviews can help gaming companies reducing the risk of an unsuccessful audit that could typically lead to a fine and negative PR.

Ideally, data quality reviews should be ongoing. Real-time monitoring is crucial for identifying issues promptly. Additionally, scheduled audits—monthly or quarterly—help catch any long-term discrepancies or trends.

Key areas of data quality reviews

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When performing checks on the quality of CDBs, the following are the main areas to consider:

  1. Data Completeness: Ensure that all necessary fields are populated correctly. Missing or incomplete data can lead to errors downstream.
  2. Data Accuracy: Cross-check data against reliable sources. For example, player balances should match financial records.
  3. Data Consistency: Verify consistency across different databases and systems. Inconsistencies can cause confusion and operational inefficiencies.

Starting from the specific Dutch case and then expanding to other markets, here at ComplianceOne Group we have developed a data quality review service using our experience in dealing with this form of analysis. Leveraging feedback obtained directly from regulators, we created a testing procedure that performs the following:

  1. Tests on triggering reports from staging environment. We access the client’s staging environment with test accounts and perform actions that are aimed at triggering specific reports in the control database. We then check that these have been correctly generated and that they contain all necessary information, checking their accuracy against the back-office.
  2. Data quality tests on production environment. We download a large number of reports directly from production and run a battery of tests that we have designed and that is tailored specifically at checking completeness and consistency of the information contained in the control database.

All findings are promptly reported to the client and, if needed, we can assist with solving any issues found.

Conclusion

When I started being exposed to control databases, I understood that for many this is a very technical area and that maintaining this environment functioning correctly can be quite cumbersome. Nevertheless, a commitment to data quality is a necessary for ensuring continuous compliance of gaming platforms. If you are interested in running regular data quality reviews, or even just a one-time overall check, contact me and I will be happy to assist!

 

The post The Importance of Data Quality Review Checks in the Gaming Industry appeared first on European Gaming Industry News.

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7777 gaming signs a strategic iLottery content deal with Scientific Games

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7777 gaming, a leading provider of digital gaming solutions, has announced a significant strategic partnership with Scientific Games a global leader in retail and digital lottery games, technology, analytics and services, to deliver digital lottery games through the SG Content Hub Partner Program.

The SG Content Hub Partner Program is a unique platform and game content partnership program featuring an expanding, highly curated selection of iLottery games from best-in-class, game studios worldwide in a variety of play styles appealing to all player types in multiple languages, as well as access to select licensed properties from the largest licensed brands portfolio in the lottery industry. Scientific Games currently serves 150 lotteries in 50 countries.

 

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Elena Shaterova, Chief Commercial Officer at 7777 gaming, expressed enthusiasm about the partnership: “Partnering with Scientific Games represents a significant milestone for 7777 gaming, solidifying our position as a global leader in digital lottery solutions. Through this collaboration, we are poised to deliver unparalleled gaming experiences to players worldwide, driving innovation and growth in the lottery industry.”

 

Steve Hickson, VP of Digital Games at Scientific Games commented: “We are delighted to welcome yet another top-class lottery game studio to the SG Content Hub Partner Program. The addition of 7777 gaming and their fantastic games aligns perfectly with our goal to make a variety of digital lottery content available to existing and new Scientific Games customers. Our SG Content Hub Partner Program is developing at pace as we continue to provide our customers with frictionless access to the very best content in the industry.”

The SG Content Hub Partner Program offers a one-stop solution for accessing multiple iLottery game studios, seamlessly integrating with a lottery’s existing gaming systems and iLottery technology. It streamlines operations, simplifies tech integrations, and enhances data analytics to drive game development and iLottery portfolio management.

7777 gaming is renowned for its ability to deliver high-quality iLottery games tailored to the unique requirements of different lotteries. The company ensures that its game content meets stringent government regulations and operators’ expectations for customization. With custom-made lottery concepts, 7777 gaming guarantees enhanced player satisfaction and fosters a deeper sense of connection and loyalty to the brand.

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The post 7777 gaming signs a strategic iLottery content deal with Scientific Games appeared first on European Gaming Industry News.

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