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Record turnover of 213 million euros in 2021
· Turnover increased by 14.7% to 50.9 million euros (44.4).
· Revenue on a pro forma basis increased by 24.0% to EUR 42.6 million (34.4).
· EBITDA decreased by 9.1% to 7.5 million euros (8.3).
· Pro forma EBITDA increased by 24.0% to 7.7 million euros (6.2).
· The EBITDA margin amounts to 14.8% (18.6%).
· The EBITDA margin on a pro forma basis amounts to 18.1% (18.1%)
· EBIT decreased by 18.7% to EUR 5.1 million (6.3).
· Pro forma EBIT increased by 25.1% to EUR 5.3 million (4.3).
· Profit after tax (before 59.7 million euros of net capital gain on B2C disposal) increased by 38.9% to 4.2 million euros (3.1).
· Earnings per share amounted to €0.09 (0.07) and €1.37 including tax. capital gain from the disposal of the B2C segment.
· Turnover increased by 31.8% to 213.3 million euros (161.9).
· Revenue on a pro forma basis increased by 31.9% to EUR 166.5 million (126.2).
· EBITDA increased by 29.2% to €35.0 million (27.1).
· Pro forma EBITDA increased by 45.2% to 30.4 million euros (20.9).
· The EBITDA margin amounts to 16.4% (16.7%).
· EBITDA margin on a pro forma basis was 18.2% (16.6%)
· EBIT increased by 26.2% to EUR 26.3 million (20.8).
· Pro forma EBIT increased by 47.7% to EUR 21.6 million (14.7).
· Profit after tax (before net capital gain on B2C disposal of 59.7 million euros) increased by 72.0% to 22.6 million euros (13.1).
· Earnings per share increased by 64.3% to €0.49 (0.28) and €1.77 including tax. capital gain from the disposal of the B2C segment.
*B2C as continuing operations and based on net royalties as of December 2021. Pro forma B2C basis based on net royalties for the period presented and a specification can be found on page 8 of the report.
SIGNIFICANT EVENTS OF THE QUARTER
· Aspire Global divested its B2C segment effective December 1, 2021.
· Further expansion in the United States thanks to Pariplay’s agreement with BetMGM, the first American operator of online casinos.
· Strengthened position in Latin America thanks to BtoBet’s agreement with FanDuel, part of Flutter Entertainment, to provide its PAM for Daily Fantasy Sports in Brazil. Pariplay has signed an agreement to supply its own games to Holland Casino in the Netherlands. BtoBet has signed an agreement with BestBet24 to provide its sports platform in Poland.
· Agreement to acquire 25% of bingo provider END 2 END with option to acquire all shares.
· The Board of Directors proposes that no dividend be paid for the 2021 financial year.
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER
· On January 17, 2022, a tender offer was made by NeoGames to shareholders of Aspire Global to tender all of their shares in the Company to NeoGames for consideration consisting of a combination of cash and newly issued shares of NeoGames in the form of a Swedish custodian. Received. NeoGames shares are admitted to trading in the United States on the Nasdaq Stock Exchange, Global Market level. The principal shareholders of Aspire Global, who hold in aggregate shares representing 66.96% of all shares and voting rights of Aspire Global, have entered into irrevocable undertakings which allow the other shareholders of Aspire Global to tender their shares to NeoGames and to receive 100% cash consideration equal to SEK 111.00 per share tendered to Aspire Global representing a premium of 41.40% over the January 17, 2022 closing price of SEK 78.50 for Aspire Global stock. The Aspire Global Nominating Committee unanimously recommends that Aspire Global shareholders accept the full cash consideration alternative of SEK 111.00 per Aspire Global share.
“WE HAVE SUCCESSFULLY ACHIEVED OUR GROWTH STRATEGY AND EXCEEDED OUR FINANCIAL OBJECTIVES”
Aspire Global has had an incredible track record in recent years with substantial organic growth complemented by value-creating acquisitions. NeoGames’ offer of SEK 111 per share means our share has increased by 270% since listing on the Nasdaq First North Growth Market in July 2017. NeoGames’ offer, an end-to-end iLottery technology provider , is a natural step for Aspire Global and a strategic fit.
All operations of Aspire Global will form a new iGaming division within NeoGames. The objective of the combination is to generate significant long-term value for both groups of shareholders, by creating synergies and capitalizing on the key strengths of our two companies and positioning them both for expansion in the new and existing markets.
We believe that the irrevocable commitment of a significant portion of our shareholders to elect to receive the full equity component of the transaction, subject to pro rata, suggests strong belief in the future of both companies. This is not only a strategic fit, but also a strong cultural fit, as significant parts of both management teams worked together extensively when creating NeoGames.
HIGH B2B PERFORMANCE RECORD
With the divestiture of our B2C segment on December 1, 2021, we have taken another important strategic step towards becoming a clearly focused B2B company. Thanks to this streamlining of the company, we become not only 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%. Organic B2B revenue growth in 2021 was 26.6%. These are record numbers of which we are proud and reflect the professionalism, drive and commitment of the Aspire Global team. It is also with satisfaction that I can see that we have greatly exceeded our financial objectives for 2021.
We saw strong growth in all quarters of 2021 and revenue, excluding B2C, grew 24.4% in Q4. Fourth quarter 2021 figures were negatively impacted by new regulations in some European countries as well as exceptionally favorable player results in sports in October, while the inclusion of B2C brands divested on a “net royalty” basis in December 2021 had a positive impact.
GERMAN AND DUTCH PLATFORM OFFERS
We have recently made significant progress in executing 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 providing our platform in regulated markets to tier 1 operators. that Germany and the Netherlands will become very large iGaming markets with great potential for growth.
At the end of 2021, we completed the migration of all major partner brands to BtoBet’s proprietary sports betting platform and were able to phase out our former third-party provider. The rapid execution of the migration is significant proof of Aspire Global’s strong technological, managerial and operational skills.
PARIPLAY – KEY PROGRESS IN NORTH AMERICA
Pariplay, the leading content provider and aggregator, continues to show its strengths by successfully carrying out its growth strategy. By securing significant agreements in North America, we are well on our way to establishing ourselves as a key iGaming provider in this rapidly growing market. Pariplay is now certified in Michigan, New Jersey and West Virginia and has signed tri-state agreements with major US operator Golden Nugget Online Gaming and the three major US online casino operators BetMGM. Through the collaboration with NeoPollard Interactive, Pariplay will enter the Canadian market after signing an agreement to offer its content on Play Alberta, the only regulated online gaming site in the province.
In the fourth quarter of 2021, Pariplay extended its successful partnership with Rush Street Interactive (RSI) and launched its proprietary games with RSI in Colombia. Pariplay has also signed an agreement to supply its own games to Holland Casino, the largest Dutch operator.
BTOBET SIGNS NEW CONTRACT WITH FLUTTER
BtoBet, our exclusive bookmaker, recently obtained certification in Denmark and the Netherlands. After receiving the Dutch certification not only for sports betting and gaming, but also for the platform, we will now offer our complete offer in the Netherlands. In Denmark, we are adding sports to our current casino offering.
In the fourth quarter of 2021, BtoBet entered Poland through an agreement with Warsaw-based BestBet24. BtoBet will provide BestBet24 with its sports betting platform for retail and online channels. BtoBet has also extended its collaboration with Flutter Entertainment by providing FanDuel with its state-of-the-art PAM platform as the operator enters the Brazilian market with its Daily Fantasy Sports (DFS) offering.
IMPROVE THE OFFER WITH BINGO
In December 2021, we took an important step in our strategy to control the entire B2B value chain by acquiring a minority stake in bingo provider END 2 END with an option to acquire all shares. END 2 END and its certified bingo product gives us access to true omnichannel technology and a proprietary offering in one of the largest verticals in the iGaming industry. Bingo is particularly important in regulated markets where operators demand the ability to offer more than one vertical. We are very pleased with the performance of END 2 END and the opportunities we have identified so far.
ASPIRE’S INCREDIBLE GLOBAL TEAM
In 2021, we increased investments in developing our team’s skills by introducing an advanced leadership program. It will be exciting to follow the development of our leaders and see how the program can contribute to even higher motivation and creativity.
I would like to take this opportunity to thank everyone in the Aspire Global team for their fantastic efforts in 2021. It is also good that we maintain the relationship with our great Karamba team, which made up the B2C segment, as they continue to be one of our main partners.
Aspire Global is today a focused B2B company with a leading offering in the iGaming industry. Over the past few years, we have made significant progress in building a strong position and adding Tier 1 operators to our partner base, especially after the value-creating acquisitions of BtoBet and Pariplay. We now look forward to the next leg of our journey and I am very excited about the opportunities that the combination of Aspire Global and NeoGames offers.
Tsachi Maimon, CEO