In the quarter concluding September 30th, Aspire witnessed its income escalate by 16% compared to the previous year, reaching €33.2 million ($36.9 million).
This expansion was propelled by the firm’s business-to-business division, which saw a 40% revenue surge, hitting €21 million and constituting 63% of the group’s overall revenue for the period. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 16% year-on-year to €5.2 million, even though its B2B operations did experience a 15% EBITDA increase to €4.3 million. Following taxes, Aspire reported a profit of €4.4 million, marking a 17% year-on-year reduction.
Throughout this timeframe, Aspire’s share price faced challenges, experiencing a consistent decline during the third quarter, dropping from SEK 43 ($4.50) in July to SEK 31.50 by September’s conclusion.
Examining the broader context, for the nine months ending September 30th, 2019, Aspire’s revenue expanded by 38% to €99.2 million, with 61% originating from its B2B sector.
Significant occurrences during the third quarter encompass the company securing a renewal of its Swedish license until 2021, obtaining a bingo license from the Gambling Commission, and finalizing the €13.1 million acquisition of Pariplay.
“A key goal for 2019 was to capitalize on asset monetization within the gaming vertical, ideally through mergers and acquisitions,” remarked Tsachi Maimon, chief executive of Aspire Global. “In early October, we concluded the purchase of Pariplay, a prominent content provider and aggregator, which is currently being assimilated into the Group.”
Pariplay yielded €7.6 million in revenue and €1.2 million in EBITDA during the initial nine months of the year and is projected to deliver “substantial expansion” in 2020 and a “favorable EBITDA contribution” to Aspire Global starting from the fourth quarter of 2019 onward.