Aspire Global´s sales came in at EUR 33.2m (estimated EUR 33.9m) which was 2% below our estimates. Adjusted for the Swedish fine, the EBITDA came in 2% below the estimates, and the EBITDA margin was in line with expectations. The earnings per share amounted to, EUR 0.09 (estimated EUR 0.10) which was 8% below estimates. Adjusted for the fine, the EPS was in line with expectations.
On the segment level, the B2B segment´s revenue (Incl. internal revenue) came in at EUR 21.5m (estimated EUR 22.6m) which was 5% below our estimates. The player retention rate was lower than expected, while the player values came in above expectations. The EBITDA came in 4% below our estimates. Adjusted for the fine the EBITDA came in 2% above our estimates. The B2C segment´s revenues came in at EUR 13.8m (estimated EUR 13.3m) which was 3% above our estimates. The marketing expenses were, however, higher than expected with resulted in a lower EBITDA than estimated.
All in all, the growth rate for Aspire Global is impressive, with a Y/Y 81%. The drivers behind this growth are the customer intake that has increased with 72% and the player value (ARPU) that has increased by 16%, Y/Y. At the same time, the EBITDA margin is kept at a high rate of around 18%.
Aspire Global also announced, shortly before the Q1 release, new partnerships that will add the brands Vipps Casino and DigiBet to Aspire Global´s platform. This confirms the attractiveness of Aspire Global´s platform.
As mentioned in Aspire Global´s presentation, the company is scanning for potential M&A targets and examined several M&A possibilities. The M&A scanning has, so far, not resulted in any deals as Aspire Global wants to make sure the acquisitions will be value adding for existing shareholders. According to us, this is the right M&A strategy. Nevertheless, being too picky might also mean that Aspire Global risk missing out on some good opportunities.
Following the Q1 report, we will review the case and follow-up with a research update.
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