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Aspire Global: Interim Report Fourth Quarter 2021

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Record High Revenues of €213 Million in 2021

FOURTH QUARTER*

·        Revenues increased by 14.7% to €50.9 million (44.4).

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·        Revenues Pro-Forma basis increased by 24.0% to €42.6 million (34.4).

·        EBITDA decreased by 9.1 % to €7.5 million (8.3).

·        EBITDA Pro-Forma basis increased by 24.0% to €7.7 million (6.2).

·        The EBITDA margin amounted to 14.8% (18.6%).

·        EBITDA margin Pro-Forma basis amounted to 18.1% (18.1%)

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·        EBIT decreased by 18.7% to €5.1 million (6.3).

·        EBIT Pro-Forma basis increased by 25.1% to €5.3 million (4.3).

·        Earnings after tax (before €59.7 million net capital gain on B2C divestment) increased by 38.9% to €4.2 million (3.1).

·        Earnings per share amounted to €0.09 (0.07) and €1.37 incl. capital gain from divestment of the B2C segment.

FULL YEAR*

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·        Revenues increased by 31.8% to €213.3 million (161.9).

·        Revenues Pro-Forma basis increased by 31.9% to €166.5 million (126.2).

·        EBITDA increased by 29.2% to €35.0 million (27.1).

·        EBITDA Pro-Forma basis increased by 45.2% to €30.4 million (20.9).

·        The EBITDA margin amounted to 16.4% (16.7%).

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·        EBITDA margin Pro-Forma basis amounted to 18.2% (16.6%)

·        EBIT increased by 26.2% to €26.3 million (20.8).

·        EBIT Pro-Forma basis increased by 47.7% to €21.6 million (14.7).

·        Earnings after tax (before €59.7 million net capital gain on B2C divestment) increased 72.0% to €22.6 million (13.1).

·        Earnings per share increased 64.3% to €0.49 (0.28) and €1.77 incl. capital gain from divestment of B2C segment.

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*B2C as continued operations and based on net royalties in December 2021. Pro-Forma basis of B2C based on net royalties for the presented period and a specification is found on page 8 in the report.

SIGNIFICANT EVENTS IN THE QUARTER

·        Aspire Global divested its B2C segment effective on 1 December, 2021.

·        Further expansion in the US by Pariplay’s deal with BetMGM, the leading US online casino operator.

·        Strengthened position in Latin America through BtoBet’s deal with FanDuel, part of Flutter Entertainment, to provide its PAM for Daily Fantasy Sports in Brazil. Pariplay signed deal to supply its proprietary games to Holland Casino in the Netherlands. BtoBet signed deal with BestBet24 to provide its sports platform in Poland.

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·        Agreement to acquire 25% of bingo supplier END 2 END with option to acquire all shares.

·        The Board of Directors proposes that no dividend is paid for the financial year 2021.

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

·        On 17 January 2022, a public tender offer was made by NeoGames to the shareholders of Aspire Global to tender all their shares in the Company to NeoGames for a consideration consisting of a combination of cash and newly issued shares in NeoGames in the form of Swedish depository receipts. The shares in NeoGames are admitted to trading in the US on the Nasdaq Stock Exchange, Global Market tier. Aspire Global’s main shareholders, who in aggregate own shares corresponding to 66.96% of all shares and votes in Aspire Global, have entered into irrevocable undertakings that enable the other shareholders in Aspire Global to tender their shares to NeoGames and receive 100% cash consideration corresponding to SEK 111.00 per share tendered in Aspire Global representing a premium of 41.40% compared to the closing price 17 January 2022 of SEK 78.50 for Aspire Global’s share. The Bid Committee of Aspire Global unanimously recommends the shareholders of Aspire Global to accept the full cash consideration alternative of SEK 111.00 per Aspire Global share.

 

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CEO COMMENTS

“WE HAVE SUCCESSFULLY DELIVERED ON OUR GROWTH STRATEGY AND EXCEEDED OUR FINANCIAL TARGETS”

Aspire Global has made an amazing journey in recent years with substantial organic growth supplemented by value creating acquisitions. NeoGames’ bid of SEK 111 per share means that our share has increased by 270% since the introduction on Nasdaq First North Growth Market in July 2017. The offer by NeoGames, a technology-driven provider of end-to-end iLottery solutions, is a natural step for Aspire Global and a strategic fit.

Aspire Global’s entire operations will form a new iGaming division within NeoGames. The objective of the combination is to generate significant long-term value for both sets of shareholders, by creating synergies and capitalizing on the key strengths of our two companies and positioning them both for expansion in new and existing markets.

We believe that the irrevocable commitment by a significant portion of our shareholders to elect to receive the entirety of the equity component of the deal, subject to proration, suggests strong conviction in the future of the two companies. Not only is this a strategic fit, it is also a strong cultural fit, as significant parts of both management teams worked together extensively during NeoGames’ inception.

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RECORD HIGH B2B PERFORMANCE

By the divestment of our B2C segment 1 December 2021, we made additional significant strategic move to become a clearly focused B2B company. By this streamlining of the business, we not only become 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%. B2B organic revenue growth in 2021 amounted to 26.6%. These are record high numbers that we are proud of and they reflect the professionalism, drive and commitment of the Aspire Global team. It is also with satisfaction that I can note that we have well exceeded our financial targets for 2021.

We had a strong development during all quarters in 2021 and revenues, excluding B2C, increased 24.4% in Q4. The numbers in Q4 2021 were impacted negatively by new regulations in certain European countries as well as unusually favourable player results in Sports during October, while the inclusion of the divested B2C brands on a “net royalties” basis in December 2021 had a positive impact.

GERMAN AND DUTCH PLATFORM DEALS

We have recently made significant progress in the execution of 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 supplying our platform in regulated markets to tier 1-operators. Both Germany and the Netherlands are expected to become very big iGaming markets with a large growth potential.

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At the end of 2021, we completed the migration of all major partner brands to BtoBet’s proprietary sportsbook platform and we could phase out our previous third-party supplier. The rapid execution of the migration is an important proof of Aspire Global’s strong technological, managerial and operational skills.

PARIPLAY – KEY PROGRESS IN NORTH AMERICA

Pariplay, the leading content and aggregator provider, shows over and over again its strengths by delivering successfully on its growth strategy. By striking important deals in North America, we are on our way to establish ourselves as a key iGaming supplier in this fast-growing market. Pariplay is now certified in Michigan, New Jersey and West Virginia and has signed deals for all three states with leading US operator Golden Nugget Online Gaming and the top-three US online casino operator BetMGM. Through the collaboration with NeoPollard Interactive, Pariplay will enter the Canadian market after signing a deal to offer its content on Play Alberta, the province’s only regulated online gambling site.

In Q4 2021, Pariplay extended its successful partnership with Rush Street Interactive (RSI) and launched its proprietary games with RSI in Colombia. Pariplay also signed a deal to supply its proprietary games to Holland Casino, the biggest Dutch operator.

BTOBET STRIKES FURTHER DEAL WITH FLUTTER

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BtoBet, our proprietary sportsbook, has recently been awarded certification in Denmark and the Netherlands. After having received Dutch certification for not only the sportsbook and games but also the platform, we will now provide our complete offering in the Netherlands. In Denmark, we add sports to our present casino offering.

In Q4 2021, BtoBet entered Poland by a deal with Warsaw-based BestBet24. BtoBet will provide BestBet24 its sportsbook platform for both retail and online channels. BtoBet has also extended its collaboration with Flutter Entertainment by providing FanDuel its cutting-edge PAM platform as the operator enters the Brazilian market with its Daily Fantasy Sports (DFS) offering.

ENHANCING OFFERING WITH BINGO

In December 2021, we took an important step in our strategy to control the entire B2B value chain by acquiring a minority share of the bingo supplier END 2 END with an option to acquire all the shares. END 2 END and its certified bingo product provides us with access to a real omni channel technology and a proprietary offering in one of the biggest verticals in the iGaming industry. Bingo is especially important in regulated markets where operators request the opportunity to offer more than one vertical. We are very satisfied with END 2 END’s performance and the opportunities we have identified so far.

THE AMAZING ASPIRE GLOBAL TEAM

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During 2021, we increased investments in the further development of our team’s skills by introducing an advanced leadership program. It will be exciting to follow the development of our leaders and how the program can contribute to even higher motivation and creativity.

I would like to take this opportunity to thank everyone on the Aspire Global team for their fantastic efforts in 2021. It is also good that we will keep the relationship with our great Karamba team, who constituted the B2C segment, as they continue as one of our major partners.

OUTLOOK

Aspire Global is today a focused B2B company with a leading offering in the iGaming industry. We have over the past years made significant progress in building a strong position and adding tier 1-operators to our partner base, not at least after the value creating acquisitions of BtoBet and Pariplay. We are now looking forward to the next step in our journey and I am very excited by the opportunities the combination of Aspire Global and NeoGames offers.

Tsachi Maimon, CEO

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Top Online Casino Trends to Watch: Megapari’s Expert Analysis

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Top Online Casino Trends to Watch: Megapari’s Expert Analysis

 

The gambling industry is evolving rapidly, bringing new opportunities and challenges daily. To help affiliates maximize their earnings by focusing on what truly engages players, experts from Megapari discuss the latest trends and key developments shaping the future of the sector in their newest article.

Megapari Partners is an affiliate platform that welcomes traffic from more than 50 geographical regions. With revenue shares of up to 50%, as well as CPA and hybrid options, the platform boasts an active partner base of over 30,000 affiliates.

When discussing the evolution of online casinos, Megapari emphasized the ongoing growth in the popularity of crash games. Although the mechanics of these games are not new and have been recognized within the industry for some time, Megapari notes that their popularity continues to rise. Leading providers have adapted to the overwhelming demand for this category of slots by introducing their own variations of the crash game mechanics. Games like Aviator and Aviatrix have solidified their positions in the platform’s Top 5 most popular slots, combining high RTP with appealing graphics and captivating gameplay. Compared to Q4 2023, Megapari has observed an increase in the popularity of crash slots more than 60%, further confirming the hypothesis of the ongoing expansion of these types of games.

Additionally, Megapari’s experts point to the significance of the “retention” rate in clicker slots. These types of slots gained popularity during the first half of 2024, attracting players with their incredibly simple mechanics. While it may be too early to compare the popularity of clickers with that of crash games, Megapari believes that in the second half of 2024, the industry will likely witness further growth in this category of slots.

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When it comes to classic and well-known mechanics, roulette games remain among the top preferences for players. American and European roulettes—classic games with familiar rules—continue to attract players with their straightforward and well-known gameplay. Despite the fact that roulettes have long been a staple among popular and widely recognized slots, Megapari has noted an increase in the popularity of this category of games, demonstrating that the appeal of classic games should not be underestimated.

Beyond the games themselves, the hardware used by players is also advancing, leading users to seek out slots with superior graphics. More and more providers are focusing not only on game mechanics but also on enhancing gameplay with visually stunning and immersive slots, such as Medusa by Spinomenal or Heist: Bank Rush. Complex animations and vibrant icons attract players, enriching their gaming experience with greater variety.

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The Role of Adaptive Soundtracks in Player Engagement

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Video slot games have come a long way from their humble beginnings. Today’s gaming experience is not just about graphics or slot gameplay; sound has also taken center stage, adding depth and enhancing player immersion. One aspect that has emerged as a slot game-changer is adaptive soundtracks. These dynamic musical scores adjust in real-time based on the player’s actions, emotions, or in-slot game events. This innovation has significantly impacted player engagement, contributing to a more immersive and interactive gaming experience.

What Are Adaptive Soundtracks?

An adaptive soundtrack refers to a musical score that changes depending on what’s happening in a slot online game. Unlike static soundtracks, which play in a loop or remain the same throughout the slot game, adaptive music evolves as players progress through different levels or encounter specific challenges. The changes in the soundtrack can reflect various in-slot game elements like mood shifts, action sequences, or environmental changes, helping to create a seamless experience.

In simpler terms, adaptive soundtracks adjust to the slot game’s flow. If a player is in a high-stress situation like a battle or chase, the music might intensify to heighten the feeling of urgency. On the other hand, if the player is exploring a peaceful environment, the music may slow down or become more calming. This dynamic nature of adaptive soundtracks plays a crucial role in how engaged a player feels while playing.

How Adaptive Soundtracks Work

Adaptive soundtracks rely on a system that monitors in-slot game events, player movements, and environmental changes. Based on specific triggers, the music shifts to suit the atmosphere or slot gameplay. This can be achieved through a variety of techniques:

  • Layering: The slot game’s soundtrack is composed of multiple layers of music. Depending on the situation, different layers are added or removed to create the right mood. For instance, in a stealth slot game, the soundtrack may begin with a light, suspenseful melody, but as enemies approach, an additional layer of percussion or a faster rhythm may be introduced to increase tension.
  • Transitioning: In some slot gacor games, rather than layering, the music transitions between different themes. For example, when a player enters a combat sequence, the tranquil exploration theme may fade out and a more intense battle score takes over. The shift is smooth, ensuring that the player doesn’t feel disconnected from the slot gameplay.
  • Reacting to Player Inputs: Some adaptive soundtracks are directly influenced by the player’s decisions. In role-playing slot games (RPGs), where players make moral choices, the music may shift to reflect the emotional weight of those decisions. A heroic act may bring in uplifting music, while a villainous choice might introduce darker, more ominous tones.

Why Soundtracks Matter in Gaming

Sound is an often overlooked but essential aspect of gaming. Without it, slot games would lose a significant layer of immersion and emotional depth. Music sets the mood, adds tension, and can guide players through complex narratives without using words.

Enhancing Emotional Connection

One of the primary ways adaptive soundtracks contribute to player engagement is by enhancing emotional connections. The music in a slot game can evoke a wide range of emotions, from excitement to fear, sadness, and triumph. By adjusting the soundtrack to match the player’s experience, adaptive soundtracks ensure that the emotional impact of the slot game is felt more strongly.

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For example, in horror slot games, sudden changes in music can signal an impending threat, causing players to feel anxious or on edge. In adventure slot games, a soaring soundtrack during a climactic moment can make players feel empowered or inspired. This emotional engagement is key to keeping players invested in the slot game.

Maintaining Immersion

Another critical factor in player engagement is immersion. When players are fully immersed in a slot game, they lose track of time and become deeply involved in the slot game world. Adaptive soundtracks help maintain this immersion by creating a consistent and reactive audio environment that responds to the player’s actions.

If the music didn’t change to reflect what’s happening in the slot game, players might feel disconnected or disoriented. Imagine playing a slot game where the music remains calm and peaceful during a high-stakes battle; it would break the immersion and reduce the overall intensity of the experience. By constantly evolving to match the slot gameplay, adaptive soundtracks keep players in the moment, making every action and decision feel significant.

Increasing Replayability

Replayability is an important aspect of modern slot games, and adaptive soundtracks can contribute to this in a big way. slot games with dynamic music systems offer a fresh experience each time a player plays, as the soundtrack can vary based on different actions or choices. This variability can make players want to come back and explore different possibilities, knowing that even the music will change to match their new path.

For instance, in slot games with branching narratives, the music will adapt to the storyline the player chooses, offering a unique soundtrack for each playthrough. This keeps the experience fresh and engaging, encouraging players to revisit the slot game multiple times.

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Conclusion

Adaptive soundtracks have transformed the gaming experience by enhancing emotional connections, maintaining immersion, and increasing replayability. By responding to in-slot game events and player actions, these dynamic soundtracks keep players engaged and invested in the slot game world. As technology evolves, the role of adaptive soundtracks in player engagement will only continue to grow, offering slot gamers an ever-deepening connection to the virtual worlds they explore.

From iconic titles like The Legend of Zelda to intense shooters like DOOM, adaptive soundtracks are proving to be a vital component of modern video slot game design, making each gaming experience truly unique and unforgett

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SOFTSWISS Joins Pink October Movement

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SOFTSWISS Joins Pink October Movement

 

SOFTSWISS, a global tech company with over 15 years of expertise in iGaming, supports the global Pink October initiative to attract attention to preventing breast cancer.

This year’s Pink October campaign at SOFTSWISS is themed “A Minute Today, a Future Ahead” and emphasises the importance of early detection and preventative care. Breast cancer is the most common cancer affecting women, and early diagnosis is key in the fight against the disease. When it is noticed early, the 5-year relative survival rate is 99%.

Early detection involves doing monthly breast self-exams and planning regular clinical breast exams and mammograms. Half of the 2,000 SOFTSWISS employees are women, and the company will refund each of them for ultrasounds and mammograms in October and November.

Pink October at SOFTSWISS offers a wide range of activities throughout the month. In addition to reimbursing for medical examinations, an online webinar on mental health will provide valuable insights for those who face the disease. To support the international charity movement “Butterfly Support Mission”, women from SOFTSWISS will take part in a themed race.

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The company’s employees also personally support the initiative. To further raise awareness, prominent female influencers from the SOFTSWISS community share information about the campaign across social media, amplifying the message of self-care and vigilance.

“Health is a crucial value beyond everything. Here, at SOFTSWISS, we aim to help and support our employees’ well-being and health every day. By promoting the Pink October initiative, we want to stress the importance of well-timed self-care and make this issue visible both within the iGaming industry and beyond,” shares Chief Marketing Officer at SOFTSWISS, Valentina Bagniya.

Notably, the iGaming industry recognised SOFTSWISS’ strong dedication to ensuring the best working conditions for its employees. A few weeks ago, SOFTSWISS received the esteemed accolade “Employer of the Year” at the SBC Awards.

Supporting the Pink October initiative for the second year in a row, SOFTSWISS continues to lead by example, emphasising the importance of preventive health measures and community support. Through this initiative, the company hopes to inspire its employees and society to take action today for a healthier tomorrow.

 

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About SOFTSWISS

SOFTSWISS is an international technology company with over 15 years of experience in developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka affiliate platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.

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