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Original-Research: bet-at-home.com AG - from NuWays AG

Classification of NuWays AG to bet-at-home.com AG

Company Name: bet-at-home.com AG ISIN: DE000A0DNAY5

Reason for the research: Update Recommendation: Halten from: 29.04.2024 Target price: EUR 5.50 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow

Final FY23 in line // uncertainty from indicative decision Topic: bet-at-home reported final FY23 figures fully in line with prelims. Importantly, the report provide us with an update regarding receivables and liabilities against the Entertainment as well as regarding customer claims in Austria and Germany. In detail: Sales came in at EUR 46.2m (-14% yoy), fully in line with prelims (EUR 46.2m), driven by Betting GGR of EUR 42.3m (-14% yoy) and Gaming GGR that stand at EUR 3.8m (-14% yoy). EBITDA of EUR 0.8m (vs EUR 2.1m in FY22) was also fully in line prelims (EUR 0.8m). due to declining personnel expenses (-36%) and other operating expenses (-22% yoy), compensating for the softer topline. Importantly, leaving aside non-operating costs in connection with customer claims and the liquidation of the Entertainment, bet-at-home even achieve an undiluted operating performance (EBITDA before special items) of EUR 2.4m (vs EUR 4.4m in FY22). With an after all solid transition year 2023 in the books, we expect further tailwinds from the taken efficiency measures as well as from the outsourcing and streamlining of processes that should show its full effect in FY24. Further, higher marketing spending in Q3/Q4Ž23 should materialize in H1, paving the way to a successful UEFA EURO championship. That, paired with an industry showing avg mid- to high single-digit growth rates, bet-at-home provide confidence that bet-at-home should reach its new sales guidance of EUR 45-53m (eNuW: EUR 50m), as well as its guidance for EBITDA before special items of -1m to EUR 2.5m, easily. Also risks associated with the liquidation process of the Entertainment Ldt. and provisions for current and potential new customer claims in Austria are largely under control. Unfortunately, the indicative decision of The Federal Court of Justice in Germany a couple of weeks ago, saying that sports betting provider without a license should be in principle be liable to pay a refund, brings new uncertainty of new customer claims to the case. This should burden the stock for at least the next six month (eNuW), despite a sustainably profitable operating business and a negative EV. Reflecting the new risks stemming from the indicative decision of The Federal Court of Justice, we reiterate HOLD with an unchanged PT to EUR 5.50 based on FCFYŽ24e.

You can download the research here: http://www.more-ir.de/d/29555.pdf For additional information visit our website www.nuways-ag.com/research.

Contact for questions NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

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The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

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Quelle: dpa-Afx