INTERIM REPORT OCTOBER DECEMBER "Everything we do, we do to enable our partners to achieve their full potential"

Transcription

1 INTERIM REPORT OCTOBER DECEMBER 2018 "Everything we do, we do to enable our partners to achieve their full potential"

2 TODAY S SPEAKERS Tsachi Maimon CEO Motti Gil CFO 2

3 ASPIRE GLOBAL WISHES YOU AND YOUR LOVED ONES A HAPPY VALENTINE'S DAY! 3

4 COMPANY OVERVIEW Aspire Global is a leading platform-provider to igaming-operators, providing a first-rate turn-key solution, enhanced by professional services and exclusive content. Founded in Counting 180 people today, with offices in Malta, Israel and Ukraine. 4

5 OUR Bingo Fraud & Risk PAM Compliance Payments PLATFORM B2B B2C GAMES (FUTURE BUSINESS LINE) Casino Operations CRM Analysis Sports Betting 5

6 Q4 IN BRIEF - FINANCIAL HIGHLIGHTS B2B- Higher number of partners operating more efficiently B2C higher activity for existing players and new depositing customers 5 brands in the pipe to go live in H1 (from new or existing partners) 32.9M REVENUES +72% Y/Y 6.6M EBITDA +71% Y/Y 21.3M B2B REVENUES* +83% Y/Y 20% EBITDA Margin 123.7K FTD s +82% Y/Y * includes inter-segment platform fees 6

7 Q4 IN BRIEF - OPERATIONAL HIGHLIGHTS 2 Migrations Completed, including 1st Sports Brand Migration Granted a Casino license in Sweden Granted a Sport license in Ireland 70% of the revenues during 2018 were generated from regulated/taxed and soon to be regulated markets 5 Brands launched 1 New partner (signed) 39 Partners currently on the platform 7

8 B2B RECORD NUMBERS +83% Revenues Y/Y +64% EBITDA Y/Y Launched 5 brands Signed: 1 new partner Total of 4 sport operators on the platform Q Q Q Q Q Q Q Q * Income in this slide includes: platform fee and royalties from our proprietary games Revenues EBITDA 8

9 PLATFORM HIGHLIGHTS New bonus adjustments for the different regulatory requirements 73 games were launched from 25 different suppliers Technical Investment on the Swedish re-regulated market requirements 9

10 B2C RECORD NUMBERS +53% Revenues Y/Y +88% EBITDA Y/Y Total FTDs +56% (Y/Y) Sport NGR share was 15% out of B2C revenues Lower EBITDA in Q4 compared to Q attributed mainly to lower hold as deposits increased by 6% Q/Q M Big winner return Q Q Q Q Q Q Q Q Revenues EBITDA 10

11 POSITIVE GROWTH 12 Months Rolling Revenues (M ) 12 Months Rolling EBITDA (M ) Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q2.18 Q3.18 Q4.18 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q2.18 Q3.18 Q

12 GROWING CASH POSITION 1, Continued strong cash flow conversion from operations 5,339 Investment activity mainly attributed to our investment in our R&D projects 53,720 Out of the cash balance at the end of Q4/18, ~ 47M are available for M&A activities 49,318 Cash and cash equivalents at beginning of period Net cash generated from operating activities Net cash used in investing activities Net cash generated by financing activities Cash and cash equivalents at end of period 12

13 OPERATING EXPENSES 25,000 21,161 20,000 Administrative expenses and Gaming duties/taxes increased during the reported period 15,000 Distribution expenses increased. we attribute this to incentive plans to partners and marketing activity of our proprietary brands 10,000 5,000 11,640 1,260 1,818 2,430 3,341 0 Distribution expenses Gaming duties/taxes Administrative expenses Q Q

14 FINANCIAL POSITION Current liabilities Total Assets 97.5 M 80.0 Cash 31.5 Issuance of bond in Q2 2018, increased non-current liabilities and cash amounts Non-Current liability 27.5 Equity 40% of total assets Current assets 22.5 Cash M 20.0 Non-Current assets Equity Assets Equity and liabilities 14

15 2018 SUMMARY 15

16 POSITIVE YEARLY GROWTH Revenues (M ) EBITDA (M )

17 QUARTERLY BREAKDOWN Revenues (M ) EBITDA (M ) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 17

18 2018 MILLSTONES March: Launch of Sports Betting - Karamba 1st Brand April: Issuance of bond On Nasdaq Stockholm September: Capital Markets Day November: Granted a sports gaming license in Ireland December: Granted A Swedish Gaming License January: Karamba - Dedicated Business Unit, led by a Managing Director April: Implementation of GDPR data protection standards May: Renewal of Denmark license for 5 years October: 2 Migrations Completed, including 1st Sports Brand Migration November: First partners event in Malta 18

19 GOING FORWARD 19

20 NEW FINANCIAL TARGETS Revenues (M ) EBITDA (M ) * * EBITDA forecast includes expected gaming duties in existing markets 20

21 FOCUS AHEAD Launching more sport operators on the platform Open more markets for our operators Investing in our new tech site in Kiev for further scalability Release of at least 5 proprietary games during

22 Q&A 22

23 THANK YOU 23

24 LARGEST SHAREHOLDERS LARGEST SHAREHOLDERS, September 30 th 2018 NUMBER OF SHARES VOTES AND CAPITAL, % Matalon Barak 12,048, % Zahavi Pini 7,500, % Azur Eli 7,500, % Aran Aharon 3,000, % BNY MELLON (ESOP) 1,729, % Swedbank Robur Ny Teknik BTI 1,686, % Swedbank Nordic Microcap 1,666, % Fondita Nordic small CAP 1,043, % Skandinaviska Enskilda Banken 968, % BPSS LDN 917, % Total 10 largest shareholders 38,059, % Other 1,687 shareholders 7,074, % Total 45,134, % 24

25 INCOME STATEMENT Fourth quarter Full year (Oct-Dec) (Jan-Dec) ,923 Revenues (including EU VAT) 32,879 19, ,592 EU VAT ,109-1,148 Net revenues 32,184 18, ,483 70,775 Distribution expenses -21,161-11,640-64,123-42,876 Gaming duties -1, ,406-3,019 Administrative expenses (Note 4) -3,341-2,430-12,753-10,618-25,625-14,984-81,282-56,513 EBITDA 6,559 3,828 21,201 14,262 Amortization and depreciation ,895-1,228 Operating income 6,032 3,460 19,306 13,034 Interest income and foreign currency exchange differences with respect to funding to related group , Finance income Finance expenses , Income before income taxes 5,998 3,506 19,498 13,030 Income taxes Net income before Company share in the results of associated companies 5,666 3,287 18,512 12,250 Company share in the results of associated companies -1,050-1,979-2,340-2,465 Net income from continuing operations 4,616 1,308 16,172 9,785 Profit on discontinued operations, net of tax (Note 11) ,309 Net income and comprehensive income 4,616 1,308 16,172 11,094 25

26 BALANCE SHEET As at December 31 st ASSETS NON-CURRENT ASSETS Property and equipment 1,228 1,313 Intangible assets 7,031 4,950 Capital notes, loans and accrued interests due from a related group 11,243 9,001 Investments and loans associated companies 1,688 1,939 Deferred income taxes ,263 17,266 CURRENT ASSETS Trade receivables 10,201 9,575 Other receivables 1,518 1,215 Income taxes receivables 9,779 9,058 Related group receivables Restricted cash Cash and cash equivalents 53,720 13,412 76,214 34,338 Total assets 97,477 51,604 26

27 BALANCE SHEET As at December 31 st EQUITY ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE COMPANY Share capital and premium 5,643 4,882 Share based payment reserve 1,616 1,642 Reserve with respect to funding transactions with a related group -15,371-15,371 Retained earnings 46,786 34,439 Total equity attributable to the equity holders of the Company 38,674 25,592 Non-controlling interests Total equity 38,457 25,375 NON-CURRENT LIABILITIES Employee benefits, net Loans with respect to leasehold improvements Senior secured bonds (Note 10) 26,872-27, CURRENT LIABILITIES Client liabilities 6,686 3,515 Trade and other payables 13,019 11,505 Senior secured bonds' current maturities and interest payable (Note 10) Income taxes payable 11,307 10,467 31,493 25,487 Total equity and liabilities 97,477 51,604 27

28 CASH FLOW FOURTH QUARTER FULL YEAR Net cash generated from operating activities 5,339 2,619 22,922 16,048 Net cash used in investing activities -1,185-3,036-6,061-7,609 Net cash generated by (used in) financing activities ,447-7,287 Net increase (decrease) in cash and cash equivalents 4,402-1,069 40,308 1,152 Cash and cash equivalents at the beginning of the period 49,318 14,481 13,412 12,260 Cash and cash equivalents at the end of the period 53,720 13,412 53,720 13,412 28