Analysis, Aspire: Two legged one stop shop

Aspire Global is primarily a full B2B service provider but also have B2C segment for its propriety brands. With a focus on local licenses could generate a continued strong growth given current regulatory scene in Europe. We see good potential in the share.

Aspire Global (the company or Aspire) was found­ed in 2005 and has been profitable since then. The company has grown into being an interesting iGaming company providing a unique holistic gaming solution to operate gaming sites (B2B). Aspire also run proprietary brands (B2C). 2017 was a good year with growth in both segments.

The B2B-segment offer its partners in the iGaming market a full-service solution for launching and operating online casinos and sportsbook. The solution takes care of all aspects of running a gaming site, thus making the company a one stop shop. This means that established operators can be migrated to reduce costs other actors outside of the iGaming space can also be approach – such as media houses or other players with large customer offline- or online flow. These actors have proven more likely to enter the market after reregulation. In the UK Sky News and The Sun is an example. In Italy, La Gazzetta dello Sport and in Denmark, Tivoli are two other examples of actors from other industries starting iGaming sites after reregulation took place. The com­pany’s partnership with Cofina Media also gives firm indications that the solution is on demand. Adding to the case is the recently added betting solution. The timing is good as the World Soccer Cup is coming up and betting is the largest vertical in the iGaming market. Not to be forgotten is the proprietary brands which once again is experience growth after improvements on various levels.

The reregulation of markets is an opportunity for the company that currently holds six licenses. About 70% of the revenues comes from reregulated or soon to be regulated markets – higher than the competition. However, as the position on reregulated markets strengthened the margins will fall. Still we see good potential upside in the share.

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