Aspire Global is garnering more attention as a result of its share price rising 89% year to date. Aspire Global has been building one of the most complete and sophisticated iGaming systems in the world, including sports, aggregation, games, and managed services for some time now. For over 15 years, the business has provided its partners with excellent specialized solutions. The adaptable and unique AspireCore iGaming platform can keep up with the rapid expansion of the company’s partners. However, for those companies who want to purchase the entire package, Aspire provides services that are fully managed.
The company is centered on a B2B2C strategy of expanding its software and services platform, which already powers more than 150 partners like Betfair, Rush Street Interactive, 888, and GAN, while also operating B2C brands. Also, Aspire Global and PlayLive! are set to provide a better online gaming experience for players in Pennsylvania.
And here are the seven things regarding Aspire Global that all investors should be aware of.
Table of Contents
The Share Price has Potential that is Hard to Ignore
Aspire is valued at SEK 100 per share, based on discounted cash flow. This offered a 41% price increase above the market as of May 6, 2021. Aspire’s FY21 P/E multiple is 12.6x, which is 71% less than that of its competitors.
Stable Double-Digit Revenue Growth
Aspire is experiencing stable growth. Q121’s sales increased 42.6% year over year, with sequential growth in all business segments.
Margins are Also Going Up
And it’s not just about sales, it’s about margins as well. EBITDA margin rose from 15.5% in Q120 to 17.8% in Q121. How come? This is because Aspire is using its market power, which results from rapid growth, to leverage lower average costs. Additionally, the sales mix is beginning to lean more in favor of the higher-margin goods in the games and sports categories.
Strong Balance Sheet
Due to increased profitability, operational cash flow increased by almost three times year over year. Aspire repaid €27.5 million in senior secured bonds in April 2021 using available and borrowed funds.
The Extending Reach of Aspire
With a presence in 26 regulated markets and growing, there is always room for expansion as new operators are brought on board in important regions like the US and the UK. Aspire is also open to further acquisitions, having recently signed several successful ones.
ESG is on the Agenda
In addition to creating an annual sustainability report, the board is dedicated to giving its iGaming product users a safe and supportive environment.
There isn’t a clear explanation for why Aspire’s performance might decline. It seems to have figured out a winning recipe. If management keeps up its strong plan execution, there’s a good chance the value difference with peers will narrow down.