Aspire Global reported record revenue for the first quarter of its financial year following the sale of its B2C operations.
Revenue for the three months to 31 March 2022 amounted to €46.3m (£39.0m/$48.7m), up 33.4% from €34.7m in the corresponding period last year and a new quarterly record.
Aspire said all of its segments experienced strong year-on-year growth, with revenue from its Aspire Core platform and managed services business climbing 24.8% to €34.0m. This, the developer said, was helped by ongoing improvements to the Aspire Core platform and the new AspireEngage CRM system.
Revenue from the Pariplay aggregation and games segment also increased 38.5% to €9.0m, driven by 17 new operator deals agreed during the quarter, while revenue from the BtoBet sports betting business jumped 88.3% to €4.4m.
Breaking down Q1 performance geographically, the UK and Ireland remained Aspire’s core market with revenue here reaching €21.3m, up 101.6% year-on-year. Revenue from the rest of Europe slipped 21.7% to €13.2m, while rest of world revenue increased 72.2% to €8.8m and Nordics revenue was up 14.8% to €3.0m,
Other developments at Aspire in Q1 included online lottery platform provider NeoGames as launching a public offer worth SEK4.3bn to acquire 100% of the shares in the business. The deal could close before the end of the first half of this year.
Also in Q1, Aspire received full certification to operate in the Netherlands, allowing it to roll out its player account management platform solution, sportsbook and casino games throughout the country.
Moving on to costs and operating expenses for the quarter were 37.1% higher at €38.1m, with spending up across distribution expense, gaming duties and administrative expenses.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 18.8% to €8.2m, while after accounting for €2.7m in depreciation and amortisation, this left an operating profit of €5.6m, up 14.3% year-on-year.
Aspire also noted €1.6m in interest income and foreign currency exchange, which was partly offset by €487,000 in finance expenses. As such, pre-tax profit reached €6.7m, up 28.9% on last year.
The developer paid €570,000 in income tax and also noted €1.4m in losses from associated companies. This left a net profit of €4.8m, down 20.0% on last year, though Aspire noted the Q1 2021 figures included an additional €1.4m worth of capital gain and discontinued operations.
These discontinued operations mainly consist of Aspire’s B2C operations, which were sold to Esports Technologies in October.
“We have a continued strong business momentum, and the quarterly performance once again demonstrates the strengths of our offering and the capabilities of our highly motivated team,” Aspire chief executive Tsachi Maimon said.
“Aspire Global has set new records in the quarter with revenues of €46.3m and EBITDA of €8.2m. I ́m especially proud to see the progress we have made in the quarter in North America as well as in regulated European markets by adding tier-one operators to our client list and being awarded additional certifications.”
Maimon also referenced the takeover proposal from NeoGames, saying that the offer is a “natural step” for Aspire and a strategic fit for the business.
“As part of the NeoGames Group, Aspire Global will continue to take advantage of its key strengths,” Maimon said. “Beside the cutting-edge, technology advanced offering, and skilled teams, Aspire Global’s foremost asset is the long-term commitment to its partners.
“On top of our agenda is always the success of our partners and our ability to support in the fulfilment of their potential. Through our strong partnerships with leading operators and distributors, we will continue to build long-term value.”
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