Aspire Global Casinos

Aspire Global Casino – Corporate Governance and Finance

Background for Aspire Global International Ltd

Founded in 2005, the company has grown rapidly to become one of online gaming’s market leaders. At the time of writing, Aspire Global are responsible for the employment of around six hundred people.

A large proportion of this workforce is located on the Mediterranean island of Malta. The company’s administrative headquarters is located in Sliema, just across the harbour from the island’s capital, Valetta. Aspire Global also carry out operations from seven additional offices. These include two major hubs in Israel and Ukraine.

Financial Information

Aspire Global is listed on Sweden’s Stockholm Nasdaq stock exchange, where shares have been traded since the company first went public in July 2017. The Initial Public Offering (IPO) involved the sale of 11 million shares. Only around two million of these were new, however, with the rest sold off by existing shareholders of the previously privately owned company.

The relatively low proportion of freshly issued shares meant that only around SEK 60m ($7 million / €6m / £5m) of new money was raised. The sale of existing shares meant that the total revenue raised amounted to a healthy SEK 300m ($39m / €35m / £29m). The IPO meant that the company was valued at around SEK 1.2 billion ($150m / €135m / £115m) shortly after the shares were issued.

The funds raised were immediately put to good use. Much of the incoming revenue was invested in the further growth of the company, including acquisitions and technological development.

This policy of rapid re-investment in the business has certainly paid off. The newly listed Aspire Global shares opened at 32 Swedish kronor (SEK), equivalent to around $4 (€3.5 / £3) in the summer of 2017.  Since then, the company has rapidly expanded its operations in all areas so that at the time of writing (end of 2023), the company’s shares are valued at around SEK 73.70 ($7 / €6 / £5).

Current Strategy

Aspire Global’s overall strategy is one of fostering consistently increasing growth. This is being achieved by focusing on four main areas: the organic growth of its existing business, acquisition of suitably synergistic businesses, development of new business areas within the online gaming industry and geographical expansion.

Organic Growth

Aspire Global continue to grow its existing businesses, with its online casino software platform performing particularly strongly. There are now around fifty unique brands operating on the platform in Europe. Some are operated by Aspire Global themselves, although most are owned by independent casino operators who license the software. Titles currently operating on the company’s platform include Casiplay, Casino Luck, Jaak Casino, Karamba and Mr Play.

The highly efficient, smooth and reliable platform is popular with casino operators, who can either pick a design ‘off the shelf’ or customise it to their requirements. Players enjoy the extensive range of games on offer and the exceedingly flexible payment options. Revenues continue to grow as more operators and players are attracted by the company’s service and increasingly positive reputation.

Acquisitions

Aspire Global has made several strategic acquisitions in recent years. These have enabled the company to move into both new gaming markets and new geographical territories. Two recent acquisitions have been especially effective in achieving the company’s growth objective.

In June 2019, the company paid a total of just over €13 million (£11m) in order to take full control of rival platform provider and gaming software specialist Pariplay. The purchase gave Aspire Global access to not only Pariplay’s own portfolio of entertaining casino games but also to other third-party software providers who are licenced to provide games on Pariplay’s platform. In addition, Pariplay also holds or has applied for gaming licences to operate within a variety of states in the United States.

Thus in one fell swoop, this deal means that Aspire Global has gained access to new game providers, new casino sites and their players, and potential new markets in fresh geographical territories. The strategy started to bear fruit almost immediately. The company reported a strong performance from Pariplay in the 2020 financial year, with increasing potential for further future expansion in the United States.

This successful acquisition was followed up the following year by the purchase of sports book specialists BtoBet in 2020. This was achieved at a total cost of €20 million (£17m), with possible further add-ons depending on the company’s performance over the first two years of Aspire Global ownership.

This acquisition enables the company to move into an entirely new market for them. At the time of the takeover, BtoBet had more than thirty different sports betting operators on their platform, which covered Europe, South America and Africa. Both the number of licenced operators and the number of countries the company operates in have increased since then, adding additional revenue and market share to what was already a very profitable deal for Aspire Global.

New Business Areas

A major part of Aspire Global's strategy for growth is to attempt to move into entirely new gaming markets. A major step in this direction came with the acquisition of BtoBet, as outlined above. This is the foundation for the company’s move into the sports betting market, where, up until 2020, it had no interest.

Geographical Expansion

Aspire Global casinos began their operations in the European market, which remains the company’s stronghold. The majority of the company’s revenues continue to be generated in Europe. Both organic growth and strategic acquisitions mean that the company now operates in North and South America and in Africa too. There is plenty of room for further growth in all these territories as additional countries are added to the company’s portfolio of licenced markets.

In the United States, in particular, prospects for revenue development look good. The company had already applied for and received a gaming license to operate in the state of New Jersey. Meanwhile, an interim licence had also been agreed upon for the state of West Virginia. Further licence applications were pending approval for Pennsylvania and Michigan, with more in the pipeline.

Current Performance

Annual Report 2020

The Aspire Global Annual Report for 2020 was a very positive one. Total revenues were up more than 23% on the previous year to a record €162 million (£136m). Earnings before tax were also well up to just over €27 million (£23m). This also represented a healthy growth rate, being up just under 25% from the previous year (2019).

These figures represented an all-round excellent performance by the company over the full year. Organic growth came in at 15%, showing that the existing sectors of the company were performing well. This is important because often, when companies make large acquisitions, the extra ‘bought in’ revenue and profits of the new subsidiary companies can hide an underperforming core. This is not the case at Aspire Global, where the core business is in excellent health.

By the end of 2020, the company boasted more than 150 different casinos and sports book operators on its platforms across four continents. Their licenced partners operated under 26 different regulated markets, with further expansion expected over the following year.

Further development of the sports betting side of the business was targeted for 2021, particularly in the United Kingdom and Germany. The United States was also indicated as a prime target for growth in both the online casino and sports book sectors of the business.

Aspire Global International Limited Progress Report for 2021

The Third Quarter (Q3) figures for 2021 demonstrate performance and growth, which exceeds even the ambitious targets set at the end of the previous year.

Total revenues for the first nine months of 2021 have already exceeded the figure for the whole of 2020 (€162.4 million (£136.4m)) and represent a growth of over 38% when compared with the first nine months of the previous year. The same applies to earnings before tax too, which have already reached €27.5 million (£23m) by the end of Q3. This is more than was achieved in the whole of 2020 and represents an increase of almost 50% over the first nine months of that year.

Even more remarkably, the majority of these revenues and earnings have come from the existing portions of the business, rather than acquisitions and new development, with organic growth reported at 39%.

Some of the more notable developments in 2021 included further territorial advancement in the Americas. A full gaming licence has been awarded to the company by the US state of West Virginia, while Aspire Global is also expecting to be operating in the massive market of Brazil by the year's end.

Also, the company has been undergoing a major restructuring and review of its business-to-consumer (B2C) part of the organisation. As a result of this, the decision has been taken to sell this division to Esports Technologies. Announced in October, this deal had not been completed by the end of Q3 but is expected to bring in revenues of around €65 million (£55m).

Overall, any review of the company’s performance over the past almost two years must be a positive one. With unparalleled growth in both revenues and earnings, the company continues to go from strength to strength.

Aspire Global continue to demonstrate impressive organic growth but is also expanding the business in terms of market share, operator and player numbers, and territorial reach. There is plenty of scope for further development too, particularly within the sportsbook sector. There is also the prospect of a rapid increase in revenues from burgeoning markets in the United States and Brazil.

The sale of the company’s B2C division is also a very positive move. It represents a renewed focus on the company’s core Business to Business (B2B) strengths and also brings in much-needed revenue, which can be invested in further expansion and acquisitions

Board of Directors, Management and Shareholders

The financial performance of the company in recent years clearly demonstrates that Aspire Global is in good hands. The company has seen a sustained period of growth which shows no sign of coming to an end in the foreseeable future. Let’s take a look at the people responsible for the company’s firm strategic direction, which has led to this success.

Progress Report for 2022

Aspire Global, released its 2022 progress report highlighting the company's performance, achievements, and future plans during 2023.  They are a well-known name in the iGaming industry, providing end-to-end solutions for online casinos and sports betting. They have been in operation since 2005 and have a strong presence in many markets worldwide. Its recent 2022 progress report reveals insight into its overall performance, growth, and future strategy.

The company has gained strong financial performance, with an increase in revenue, which grew by 32% compared to the previous year. The company's EBITDA also improved, increasing by 43%, demonstrating the effectiveness of its cost management initiatives.

The report highlights its commitment to product development and innovation. Aspire Global’s recent launch of a new sportsbook platform and its partnership with Betsson Group are examples of its product development strategy. A new game aggregation platform is also in the pipeline, which is expected to launch in the coming months.

The progress report indicates the company's plans to expand further. The company's entry into new markets, including the US, and its partnerships with local operators in various regions. The company's acquisition of BtoBet, a leading sportsbook provider, is also expected to strengthen its presence in the Latin American market.

Aspire Global are committed to corporate responsibility and sustainability. The report mentions its initiatives to promote responsible gambling, such as the implementation of player protection measures and its support for various responsible gambling organizations. The company's efforts to reduce its environmental impact are also highlighted in the report.

The report highlights its focus on employee engagement and development the company's efforts to create a positive work environment, and its investment in employee training and development programs. The company is proud of its diversity and inclusion initiatives and ongoing commitment to equal opportunities for all employees.

Aspire Global acknowledges the challenges faced by the iGaming industry and outlines its plans to address them. This includes the changing regulatory landscape and the need to adapt to new regulations in various markets. Along with many operators, they are presented with the growing demand for online gambling and the company's plans to capitalise on this trend.

In terms of Aspire Global's future strategy, its main focus is on growth and innovation. The company plans to expand into new markets and launch new products and services, with a keen focus on technology and its plans to invest in new and emerging technologies.

Board of Directors

The chair of the Board is Carl Klingberg. Born in Sweden, he has been chairing the Board of Directors since the company went public in 2017. His knowledge of the Swedish stock market and his extensive financial connections have been invaluable both in handling the company’s launch on the Stockholm Nasdaq Stock Exchange and in guiding it through its responsibilities as a publicly listed business in Sweden.

His educational background is in business economics and marketing, while his early career consisted of senior roles in a variety of entrepreneurial online-based businesses. He is also the Chair of a Swedish whisky company. Other current roles include being a board member of a Swedish venture capital company. He is also the owner of a number of other Scandinavian companies and enterprises.

Further board members include fellow Swede Fredrik Burvall, who was also co-opted around the time of the public flotation in 2017. His background in business leadership and finance, together with considerable experience in mergers and acquisitions, made him the perfect appointment for the Aspire Global Board of Directors.

Frederik also has a very useful pedigree within the online gaming industry. In addition to his responsibilities with Aspire Global, he also sits on the board at a variety of other companies involved in the industry. These appointments include Gambling.com and Enteractive. He is also the Chair or board member of a number of other companies involved in other areas.  

Israel-born Barak Matalon is one of the founders of the company, having been on board at the formation of Aspire in 2005. He is also the major shareholder in the business, holding more than 25% of the total equity in the company. His entire career has been in the online gaming industry. He is also the founder and a current board member of online lottery specialists NeoGames.

The final member of the Board is Aharon Aran. His is the most recent appointment, having only been in post since 2018. He is a successful Israeli businessman with a background in the national media industry. He is also currently the CEO of management and financial consultant groups TMF Media and Omnicom Media.

Aharon is also a major Aspire Global shareholder. His is the fourth largest holding, amounting to more than 6% of the total equity issued for the company.

Management

The Aspire Global CEO is Tsachi Maimon. He is a long-standing leader of the company, having been in charge of operations since 2013. He is also an ex-board member, stepping down in 2020. His career background is in the online gaming and telecom industries. He also sits on the boards of a number of other gaming industry companies. These include Neolotto, Minotauro Media and MarketPlay.

Antoine Bonello is the Chief Operations Officer (COO). His is a recent appointment, having been in post since 2020. He was brought in to strengthen the company’s management team with his extensive background in the online gaming industry. He has previously enjoyed senior roles with a number of major gaming companies. These include William Hill, Mr Green, Paddy Power and Betfair.

Motti Gil is the Chief Financial Officer (CFO). Appointed in 2016, he is a Certified Accountant with a career history consisting of a number of senior financial roles in online, telecommunication and technology companies.

The Chief Technology Officer (CTO) is Aditya Bhushan. He is a true ‘new boy’ of the management team, having only taken up his post as recently as June 2021. He comes with quite a pedigree, though, having arrived directly from more than a decade of experience with gaming software industry giants NetEnt. This culminated in his appointment as CTO for NetEnt (India) in 2020.

A further appointment will play a vital role in the ongoing development of Aspire Global. Quincy Raven is the Managing Director – US, having been headhunted for the role in July 2021. He is responsible for the company’s ambitious expansion plans for the burgeoning United States online gaming market.

As an American national, his knowledge of the national market and extensive experience in the US online retail and gaming industry will be invaluable. His career background includes senior roles in big-name gaming companies, including Scientific Games and Aristocrat. Based in Las Vegas, he is also handily located in the undisputed capital of the American gaming industry.

Shareholders

We have already covered two of the major Aspire Global shareholders. Founder and Board member Barak Matalon continues to be the company’s largest shareholder, while fellow Board member Aharon Aran is the fourth largest. Together, they own almost one-third of the company’s share capital.

Two further major shareholders also possess another third of the company’s shares. This pair of shareholders are actually business partners. Pini Zahavi is the famed Israeli football agent renowned for his connections with the billionaire owner of Chelsea FC, Roman Abramovich.

He certainly is well-connected within the English football industry, having also forged profitable agreements with other stellar names in the game. These include Sir Alex Ferguson, Sir Kenny Dalglish, Graeme Souness and Terry Venables. He has been involved in several lucrative big-name transfer deals, including Rio Ferdinand and Ashley Cole.

These are all illustrious names from the recent history of the game, but he remains actively involved in the football industry, with several current high-profile players on his agency’s books. These include top Polish international goal scorer Robert Lewandowski, French international midfielder Christopher Nkunku and the prolific Serbian centre forward Aleksandar Mitrovic.

Meanwhile, Pini’s business partner Eli Azur also owns a large tranche of Aspire Global shares. Eli is a major player in the Israeli media industry. He has many media interests, including ownership of several radio stations and a variety of newspapers, such as the Jerusalem Post. He also owns Charlton Broadcasting, which owns the rights to show most of the world’s major football matches in Israel.

Both partners own just over 16% of the company’s shares.

The remaining third of the company’s share capital is owned by a mixture of major institutional stakeholders such as Goldman Sachs and Nordea Bank, plus several thousand individual smaller shareholders. There are around 3,500 Aspire Global shareholders in total.

NeoGames S.A. Expands into the UK with Aspire Global's Partnership with Metropolitan Gaming in February 2023

In February 2023, NeoGames S.A., a leading provider of iLottery and iGaming solutions, revealed that its subsidiary, Aspire Global, will significantly enhance the digital presence of the UK-based land operator group Metropolitan Gaming. This move marks a pivotal expansion of NeoGames into the UK's online gaming market.

Aspire Global is set to deliver a full suite of its advanced online solutions to Metropolitan Gaming. This includes its proprietary Platform (PAM), Managed Services, and casino aggregation solution, offering a holistic and efficient approach to digital gaming.

Statements from Managing Directors

Antoine Bonello, Managing Director at Aspire Global, emphasized the growing trend of land-based operators seeking comprehensive online entertainment solutions. He expressed enthusiasm about partnering with Metropolitan Gaming, a leading UK brand, to provide a technology-driven solution encompassing all gaming verticals. This partnership underscores Aspire Global’s capability and strength in the online gaming sector.

Michael Silberling, CEO of Metropolitan Gaming, highlighted the potential of multi-channel solutions in enhancing player entertainment. He praised Aspire Global’s reputation as a platform provider with a proven track record in the UK, covering a wide range of verticals with top-tier content. The partnership is seen as a strategic step in Metropolitan Gaming's growth within the highly regulated UK market.

Strategic Importance of the Deal

The agreement with Metropolitan Gaming, which operates major casinos like the Empire Casino in Leicester Square and seven other premium locations across the UK, was facilitated by Aspire Global’s vast online operational experience in the UK. Their ability to offer a completely proprietary solution was a key deciding factor.

Aspire Global’s advanced technology and processes are essential for operating within the UK’s strictly regulated market. The multi-year deal will implement a multi-channel solution that enhances the gaming experience, accessible both on the casino floor and online via desktop or mobile devices.

Outlook for Remote Gambling in the UK

With the UK's regulated Remote Gambling sector showing robust performance, providing a seamless brand experience across various platforms is increasingly important. This partnership represents a significant opportunity for operators to leverage flexible, technologically advanced, and comprehensive platform solutions offered by companies like Aspire Global.

The collaboration between NeoGames’ subsidiary Aspire Global and Metropolitan Gaming signifies a major stride in integrating land-based and online gaming experiences. This deal not only reinforces Aspire Global’s position in the UK market but also highlights the growing importance of adaptable and sophisticated online gaming solutions in a dynamic industry landscape.

NeoGames Expands iGaming Operations with PlayLive

NeoGames S.A. announced in June 2023 a significant development. Its subsidiary, Aspire Global Limited, was to be supplying its comprehensive iGaming suite to The Cordish Companies' PlayLive! Online Casino.

Operated by the Cordish Gaming Group, PlayLive! is an established online casino in Pennsylvania. It's part of the larger Cordish Companies, a notable name in real estate and entertainment. PlayLive! provides a diverse gaming experience, offering over 100 gaming options including classic slots, interactive table games, and jackpot games. Launched in 2020, PlayLive! has played a key role in intertwining the online and physical casino experiences, especially following the openings of Live! Casino Pittsburgh and Live! Casino & Hotel Philadelphia.

Shift in iGaming Operations

The new agreement with NeoGames signifies a strategic shift in iGaming operations within Pennsylvania. Starting in 2024, PlayLive! will operate under NeoGames' suite of products, including PAM, CRM, Aggregation, and Data Analytics. This transition aims to enhance the overall gaming experience and operational efficiency.

PlayLive! stands to gain significantly from the industry-leading PAM system offered by NeoGames, which is already operational in over 20 U.S. states. This system delivers a customer-centric approach across various operations, channels, and game genres.

Aspire Global’s CRM System - AspireEngage

The agreement includes the integration of Aspire Global’s AspireEngage, a powerful CRM system. This system is expected to significantly enhance the player journey and customer satisfaction through its data-driven approach, which includes superior bonus management, personalised messaging, and user segmentation.

Integrating Pariplay’s Fusion aggregation platform will further bolster PlayLive! 's capabilities. It will provide access to thousands of titles from leading game developers and include a suite of back-office tools to enhance player value and retention.

This partnership between NeoGames and The Cordish Companies' PlayLive! marks a pivotal expansion in the iGaming sector, particularly in the Pennsylvania market.

Summary

As can be seen from the consistent growth record over the last few years, the future of Aspire Global casinos seems bright. The existing core sectors of the business continue to show impressive revenue increases, while the prospects for rapid revenue growth in new markets in North and South America also seem good.

With its strong and stable management team and experienced leadership at the board level, the company’s period of sustained growth is likely to continue for the foreseeable future.

The company continues to launch new slot sites and reinforces its market position.