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Aspire Global: Interim Report Third Quarter 2021
REVENUE INCREASED 46% AND EBITDA 38% IN Q3 2021
THIRD QUARTER
- Revenues increased by 46.0% to €58.6 million (40.1).
- EBITDA increased by 38.0 % to €9.1 million (6.6).
- The EBITDA margin amounted to 15.5% (16.4%).
- EBIT increased by 38.7% to €6.8 million (4.9).
- Earnings after tax increased 68.1% to €6.4 million (3.8).
- Earnings per share increased 62.5% to €0.13 (0.08).
NINE MONTHS
- Revenues increased by 38.2% to €162.4 million (117.5).
- EBITDA increased by 46.0% to €27.5 million (18.8).
- The EBITDA margin increased to 16.9% (16.0%).
- EBIT increased by 45.7% to €21.1 million (14.5).
- Earnings after tax increased 79.0% to €19.4 million (10.8).
- Earnings per share increased 77.2% to €0.39 (0.22).
SIGNIFICANT EVENTS IN THE QUARTER AND AFTER THE END OF THE QUARTER
- Revenues increased 46.0% from Q3 2020 driven by strong development in all segments.
- Organic growth of 39.0% from Q3 2020.
- B2B revenues grew 40.5% from Q3 2020 with organic growth of 31.2%.
- Strong performance in sub-segments Aggregation and Games – Pariplay and Sports – BtoBet.
- Agreement to sell the B2C segment to Esports Technologies announced 1 October – closing expected by 30 November 2021 upon completion
of certain contingent terms. The total value of the transaction sums up to about €65 million. The transaction also includes a four-year platform and managed services agreement with an estimated gross value of €70 million. - Aspire Global signed a platform deal with Esports Technologies in September for its leading brand Gogawi.
- Pariplay further strengthened its position in the Americas – first contract in Brazil signed and granted full supplier license in West Virginia.
- Pariplay signed a deal to provide its proprietary games to Holland Casino in the newly regulated Dutch market.
- First brand live with BtoBet’s sportsbook on Aspire Global’s platform. To date six brands are already live.
- Two deals covering Aspire Global’s complete offering signed.
CEO COMMENTS
“WE CLEARLY EXECUTE OUR GROWTH STRATEGY TO BECOME A WORLD LEADING IGAMING SUPPLIER”
With the sale of the B2C segment, Aspire Global will become a clearly focused B2B company and even stronger and more profitable. The sale will also give us additional resources to further develop and enhance our B2B offering as well as the opportunity to explore new M&A activities. In Q3 2021, we have made key progress towards our objective of establishing strong positions in the US and Brazil. Our success in these markets will be important steps in reaching our goal to become a world leading B2B iGaming supplier.
The sale of the B2C segment – expected to take place at the end of November 2021 – will have a significant positive impact on Aspire Global’s position as a focused B2B company and profitability. Excluding the B2C segment, revenues increased by 36.1% to €118.9 million and EBITDA increased by 54.1% to €22.7 million in the first nine months 2021 with an EBITDA margin of 19.1%. B2B organic growth in the nine-month period amounted to 27.1%.
We initiated the review of our B2C segment in March this year, and on October 1 we announced the agreement with US-based Esports Technologies to acquire the B2C segment. The consideration sums up to about €65 million, consisting of €50 million in cash, €10 million in a promissory note and €5 million in common stock in the listed entity of Esports Technologies. The transaction also includes a four-year platform and managed services agreement with an estimated gross value of €70 million, based on present volumes. The transaction is expected to close by November 30, 2021, pending Esports Technologies receipt of financing, and other closing requirements.
A TRANSFORMATIVE, STRATEGIC MOVE
The divestment of the B2C segment is a transformative, strategic move for Aspire Global. First of all, the change in business mix will affect the revenue so that it will consist only of B2B revenues and, at the same time, the share of managed services will increase. The divestment will also provide Aspire Global with additional resources to further develop the technology platform as well as its offering in casino, sports and managed services. The managed services part of our business is essential to us, not only because it is recurring, but also because it will secure our continued deep knowledge about player behaviour. Furthermore, we expect that Aspire Global will have other peers as a focused B2B company and that investors will find it easier to value the company.
Following the divestment, we will also look into M&A possibilities with the aim to control even more of the value chain. Our successful acquisitions of Pariplay in 2019 and BtoBet in 2020 are proof of our ability to identify and integrate companies that complement our offering in the value chain. In the first nine months of 2021, Pariplay has grown by 79.4% to €21.7 million with an EBITDA margin of 27.9%. BtoBet has also demonstrated strong growth of 68.7% to €7.8 million in the nine-month period with an EBITDA margin of 23.1%.
KEY PROGRESS IN THE US AND BRAZIL
The B2C divestment also provides us with increasing opportunities to continue to invest in establishing a considerable position in above all the big and quickly growing Brazilian and US markets. In Q3 2021, we have made key progress in the US and Brazil. Pariplay signed a deal with FansUnite Entertainment, entailing that Aspire Global enters the Brazilian market for the first time. FansUnite is a Canadian sports and entertainment company, and Pariplay will supply its wide portfolio of proprietary and third-party content, via its Fusion Pariplay also further strengthened its position in Latin America by a deal with the world-famous land-based and online games provider Ainsworth Game Technology. The deal will see Ainsworth partnering exclusively with Pariplay for all new online releases in Latin America, with making its titles available to players through Pariplay’s Fusion Pariplay reached another milestone in its US expansion strategy during Q3 2021 after being granted a full iGaming Supplier License in West Virginia. Pariplay made its debut in the fast-growing US market when its content went live in New Jersey in February 2021 and Pariplay has applied for licenses in several states. DEEPER ESPORTS RELATIONSHIPS
We are also proud and happy with the relationship we have established with Esports Technologies. Esports Technologies is a leading global operator and provider of products and marketing solutions in the quickly growing esports market. Beside the B2C deal, we also signed a strategic license agreement with Esports Technologies in Q3 2021. As part of the deal, Esports Technologies will launch its esports/sportsbook Gogawi.com in certain key markets on our platform and intends to launch an additional brand on the platform in the future. In addition, we will make the Esports Technologies proprietary esports feed available to our partners around the world.
Esports Technologies are at a rapid growth phase and aim to become the world’s number one esports company. As part of the B2C agreement, Karamba and our other B2C brands will join our B2B network, and will become one of our biggest B2B partners. I’m sure that the experience and excellence of our B2C team, together with the ambition and investment of Esports Technologies, will take the brands to new heights.
PROFITABLE GROWTH IN REGULATED MARKETS
In the quarter, Germany introduced a new regulation with higher gaming duties. Despite this regulatory change, the EBITDA margin in the B2B segment increased to 18.7% from 18.0% in Q3 2020. This clearly demonstrates Aspire Global’s ability to manage a profitable operation in regulated markets. In October, the Netherlands opened for online gaming and Pariplay just a few days ago announced a deal to supply its proprietary games to Holland Casino. Holland Casino has a leading presence within the new regulated digital ecosystem in the Netherlands.
OUTLOOK
Aspire Global has consistently demonstrated its ability to execute its growth strategy, reaching its financial targets and create value. We see great growth opportunities by expanding with existing partners, gaining new partners and entering new markets. With the divestment of the B2C segment we will further enhance investments in our technology and product offering as well as geographic presence with focus on Brazil and the US. We will also put even more energy on increasing the M&A pipeline. We clearly execute our growth strategy to become a world leading iGaming supplier.
Tsachi Maimon, CEO.
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Games Global secures exclusive contract with Playbook Fusion to bring Playbook Football™ to operator partners
New deal sees provider secure distinctive content for third-party games portfolio
Games Global, a leading supplier of iGaming content, has signed an exclusive 12-month deal with Playbook Fusion, a provider of innovative sports-themed betting games, to bring the highly anticipated Playbook Football™ to its third-party platform.
Combing the most popular game mechanics from the gambling and video gaming industries, the title is a unique football strategy betting game that offers players the opportunity to build their own football team, compete in matches, earn in-game rewards, and climb divisions throughout a season, all whilst placing in-game bets.
Users can customise their experience by selecting their team’s nationality, name, badge, and kit colours. Starting in Division 10, contenders will aim for promotion and to win Division 1 by managing their squad’s performance and team chemistry throughout the season.
During match play, opponents are selected from either a pool of AI teams or from a pool of other player’s teams in the game. Comparative team statistics are displayed, and betting markets are generated based on these rankings.
Bets can be placed on various different markets, including match result, under/over goals, correct score, and first/last/anytime goal scorer.
As players place bets, they will earn XP that accumulates across sessions, unlocking rewards that boost team performance including player packs and boost cards.
Playbook Football™ diversifies Games Global’s portfolio with a product that is already generating significant operator interest, with the potential to become a market-leading title. The partnership exemplifies Games Global’s commitment to offering cutting-edge, engaging content to its operator partners across the globe.
Andy Booth, Chief Product Officer at Games Global, said: “We are always on the lookout for fresh, unique opportunities that can elevate our offering.
“Partnering with Playbook Fusion to bring Playbook Football™ to our platform allows us to provide our partners with a product that combines the thrill of football with the strategy of betting. The game’s innovative approach aligns perfectly with our commitment to delivering standout content that captivates and drives operator success.”
Steve Rogers, Founder and CEO at Playbook Fusion, added: “Our partnership with Games Global marks an exciting chapter in Playbook Fusion’s story. By joining forces with a leading iGaming supplier, we’re able to introduce Playbook Football™ to a broader audience, showcasing a unique game concept that merges football management with engaging betting markets within a progressive gameplay mechanic.
“We believe this strategic collaboration will pave the way for Playbook Football™ to become a market leader in the sphere of gamified sports products, and we’re thrilled to have Games Global as our exclusive partner during this crucial launch phase.”
The post Games Global secures exclusive contract with Playbook Fusion to bring Playbook Football™ to operator partners appeared first on European Gaming Industry News.
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Playzia Partners with ITV Studios to Launch Love Island Game series
This multi-product deal will span over 3 years, committing to the development and release of 10 new games
Playzia, one of the fastest-growing iGaming content suppliers, has agreed a new partnership with ITV Studios, creator, producer and distributor of world-leading programmes, to develop and release a series of online games inspired by the global reality TV phenomenon, Love Island.
This multi-product deal will span over 3 years, committing to the development and release of 10 new games. The lineup will include an engaging mix of slot, crash, and instant play formats, with at least three titles set to launch in 2025. This ambitious collaboration is poised to blend Playzia’s expertise in gameplay innovation with the unforgettable elements of the beloved franchise. With Love Island’s massive international following, the titles are set to reach a broad audience and will be available in key markets worldwide, with the exception of the US and Canada.
The first three titles in this series are scheduled to launch ahead of Love Island UK’s 2025 Summer season.This will be followed by a grand showcase of all three titles at iGB London, just ahead of the upcoming Love Island UK Summer season.
The first game of the series, Love Island: Love in a Spin, will combine electrifying features for maximum excitement: Mega Symbols to increase the chances of hitting big wins, and Win Multipliers to exponentially boost rewards. This first title will be followed by Love Island: Instant Match, an Instant Game that delivers quick, rewarding gameplay, and Love Island: Love Bus, a Crash Game packed with adrenaline-pumping action.
“This brand relationship is an important step for Playzia as we bring one of the world’s most beloved franchises to life in a new and interactive way,” said Vlad Modorcea, CPO at Playzia. “Our team is working tirelessly to create games that capture the magic of the original stories while delivering the cutting-edge features and gameplay players have come to expect from Playzia.”
Steve Watling, SVP Gaming, Global Partnerships, ITV Studios added: We are very excited to be launching these new Love Island iGaming products. The Love Island brand has now grown to over 27 territories and supplementing this success will be a great, new gaming line up from Playzia.
The partnership was brokered by PrimeTime Play. “I’m delighted to bring ITV and Playzia together for this exciting project and am looking forward to the first game going live early in 2025 with others to follow later in the year,” said Simon Murphy, CEO of PrimeTime Play.
In 2025, Love Island will be celebrating a decade of entertaining more than 36 million people, making it the biggest reality show of the past decade. Additionally, since 2017, the popular dating show and all its affiliated shows have been streamed a massive 2 billion times.
Stay tuned for more updates as Playzia continues to push boundaries in the iGaming world, delivering unforgettable experiences for players who Love to Play.
About Playzia
Playzia has been created by an industry veteran with 20+ years of successful track record in engaging players with games. Leveraging this experience, limitless energy, focus, ambition and passion resulted in Playzia being established in 2024. The company’s mission is to become one of the most entertaining, fun and player-driven innovative online casino games content developers and distributors, creating games players just Love to Play. Playzia looks to position itself as iGaming industry leader in the online gaming market in a short period time with the combination of games with established mechanics and features, but very importantly also games which are innovative, varied, localised and most of all fun! The new journey has just begun! 🚀
For more information, please visit playzia.com. Contact us at [email protected]
About ITV Studios
ITV Studios is a creator, producer, and distributor of world-leading programmes and formats that people can’t get enough of. Connecting millions of people every day and shaping and reflecting the world they live in, ITV Studios is More Than TV. Its Brand & Licensing department is responsible for all global commercial activities, including sponsorship, brand licensing, consumer products, gaming, and live events. It represents a diverse portfolio, including scripted and non-scripted content, game shows, and kids’ titles, which offers a wide range of commercial opportunities. Brands include The Voice, Hell’s Kitchen, Love Island, I’m A Celebrity… Get Me Out of Here!, The Chase, Coronation Street, Schitt’s Creek, The Last Unicorn, Thunderbirds, Space: 1999, The Prisoner, and more.
The post Playzia Partners with ITV Studios to Launch Love Island Game series appeared first on European Gaming Industry News.
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ELA Games Unveils Mythical New Game, Cash of Egypt
ELA Games is proud to announce the release of Cash of Egypt, a new mythical slot game that combines high-quality aesthetics with exciting gameplay mechanics. Players can now demo the game on ELA Games’ website to explore all the game has to offer.
The 5×4 slot includes 1024 paylines, ensuring the player can enjoy frequent action both during the base game and the bonus feature. This ancient Egypt-themed slot gives players the opportunity to earn up to 5000x their stake. Combined with the exhilarating animations and captivating soundtrack, Cash of Egypt transports players to an ancient world.
Collect at least three Scatter symbols to enter the Bonus mode. Here, players receive free spins where coins rain down from the reels attached with various multipliers. Collect as many multiplier coins as possible to win big!
David Fall, ELA Games’ Business Development Manager, commented on the game’s release, saying: “Cash of Egypt is our first title for 2025, and we’re proud to invite players to try out this exciting game. The game incorporates our signature high-quality aesthetics to create an immersive experience. Combined with our engaging gameplay features, we’re sure that Cash of Egypt will become a classic title in our portfolio.”
Cash of Egypt has an engaging RTP of 95.4%, ensuring all participants can experience diverse action. For a captivating visual experience, we invite everyone to play the demo and explore the in-depth gameplay for themselves.
Cash of Egypt features:
95.4% RTP
Volatility: High
Format: 5 reels, 4 rows
Paylines: 1024 ways
Bonus Free Spins feature
The post ELA Games Unveils Mythical New Game, Cash of Egypt appeared first on European Gaming Industry News.
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