Aspire Global reports strong quarterly results
Aspire Global has increased revenue by 16.2% to €33.2 million (28.6) in Q3 2019, from growth in its B2B division. B2B revenue increased by 56.0% to €12.5 million (8.0), constituting 72.0% of total EBITDA.
We are pleased to report the two years of sustained growth, where B2B continued to boost our overall quarterly performance to €33.2 million (28.6), despite lower activity in the UK and other markets as well as the fact that, unlike 2018, there was no World Cup affecting sports revenues. Moreover, after the turn of the quarter Aspire Global signed two new partnerships for brands that will be launched before the year is over, with expected effect in 2020. EBITDA for the third quarter was somewhat lower, €5.2 million (6.2), mainly due to higher marketing expenditure for B2C as we entered a number of new markets outside the EU with expected effect as of 2020, whereas within B2B revenue and expenditure increased more proportionally. Nonetheless, during the two years that passed since the IPO, we have managed to double our revenues and EBITDA, demonstrating a sustained and profitable growth pattern for our shareholders.
One of our goals for 2019 was to materialize our game assets, preferably through M&A. In the beginning of October, we completed the acquisition of the leading content provider and game aggregator Pariplay that is now being integrated into the group.
The company generated €7.6 million (6.5) with an EBITDA of €1.2 million in the nine-month period and is expected to generate significant growth in 2020 with positive effect on Aspire Global’s EBITDA as of the fourth quarter 2019. The transaction allows us to create synergies over the coming years by broadening the game portfolio and providing a channel to distribute proprietary games outside the partner network. Moreover, Pariplay holds a license for New Jersey and last week the company entered a breakthrough agreement with long-standing partner 888casino for New Jersey, marking it Aspire Global’s first entry into the regulated US market. The event was in line with our M&A-strategy and we look forward to realizing the full potential of the opportunity.
In addition to extending our control over the value chain, we are broadening our market presence within and outside of the EU, with at least three new markets launches for 2019 and 2020, respectively. We continue to focus on regulated markets, which comes with great opportunities as well as significant challenges. We are constantly adjusting routines and tools to comply with local regulations and we are hoping to streamline these processes going forward. We recently implemented a number of extensive internal procedures within Anti Money Laundry and Responsible Gaming in the UK to ensure full compliance with the new requirements, as well as changes in the Dutch offering as part of the preparations for coming regulation in the Netherlands, expected in a year from now.
Despite the ongoing transformation of the iGaming industry and the various regulatory changes that tend to affect activity in the short-term, for instance in the UK, Aspire Global continues to sustain a strong and profitable growth. We are able to do so thanks to a wide market presence, a differentiated partner portfolio and a broad offering – most recently through the acquisition of Pariplay, the integration of which will help us to capitalize further on our game assets. Thanks to our solid balance sheet, we are also able to continue the search for additional M&A-opportunities. All in all, we remain confident in our ability to meet our financial targets for 2021, €200 million in revenues and €32 million in EBITDA. Commented, Tsachi Maimon, CEO.