RedEyen kommentti asian tiimoilta:
"Today, the Swedish Consumer Agency (SCA) announced that it sues Aspire Global´s subsidiary, AG Communications. This is an additional compliance/sustainability matter after the remarks and warnings that AG Communications received from the Swedish Gambling Authority earlier in 2019. We find this somewhat concerning and Aspire Global´s Swedish operations have been far from successful in 2019. The compliance issues might also limit Aspire Global´s ability to find strong B2B partners on the Swedish market in the short-term.
However, the share price dropped over 5% on the news, which we find exaggerated as the Swedish market generated about 1% of Aspire Global´s revenues in Q2. We also don´t expect any material penalties for the group as a whole. Moreover, the company has strong cash flows and a strong financial position, as well as plenty of other markets to grow on. The current share price is also below the fair value in our bear case scenario, limiting the downside.
Nevertheless, we view compliance and player responsibility as crucial for a serious company in the long-term. And no matter how strange and unjust authorities seem to act, we believe operators should always strive for a safety margin when it comes to compliance requirements.
All in all, we view the case as intact but also acknowledge that incidents like this may discourage investors and partners in the short-term."
