Online casino gambling concept with smartphone

Aspire Global

Stockholm: ASPIRE

Market CapSEK5017.8m

Last Close SEK107.8

Aspire Global is a leading B2B provider of iGaming solutions, offering partners all relevant products to operate a successful iGaming brand. It has announced the proposed disposal of the B2C online gaming brands, including Karamba. Aspire operates in 30 regulated markets.

Investment summary

In Q321 Aspire Global’s (AG’s) revenue increased c 46% year-on-year to €58.6m with EBITDA up 38% to €9.1m (15.5% margin). The revenue growth reflected strong organic growth year-on-year (c 39%), boosted by the first-time consolidation of Sports. Organic revenue growth accelerated from c 28% in H121. The EBITDA margin decline was solely attributable to higher gaming taxes in Germany after regulatory changes for online gaming companies.

Y/E Dec	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2019A	131.4	21.8	17.9	32.41	32.3	107.1
2020A	161.9	27.6	18.4	32.48	32.3	16.4
2021E	218.0	37.6	31.5	57.50	18.2	11.9
2022E	248.4	44.6	37.3	70.84	14.8	11.2

Industry outlook

AG is exposed to favourable growth trends. First, the online gaming market is enjoying structural growth due to increasing global wealth, internet/mobile penetration and regulation. The geographic markets to which AG currently has some exposure are forecast to grow gross gaming revenue (GGR; ie customer wagers less their winnings) from US$37.6bn in 2019 to US$69.1bn by 2025 (source: H2 Gambling Capital). Second, online gaming markets are highly competitive with differing levels of regulation. These combine to make the operation of an online gaming brand challenging, particularly when working across many geographies.

Last updated on 21/01/2022