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

Classification of NuWays AG to bet-at-home AG

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

Reason for the research: Update Recommendation: Halten from: 16.05.2024 Target price: EUR 5.50 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow

Solid Q1 // indicative decision weighs on the stock; chg

Topic: bet-at-home reported Q1 figures broadly in line with estimates. Ramped-up marketing spending burdened bottom line but should fuel topline growth during UEFA EURO championship in Q2/Q3. In detail:

Sales came in at EUR 11.7m (-12% yoy, 1% qoq), slightly above our estimates of EUR 11.5m, driven by the Betting GGR of EUR 10.6m (-13% yoy, 2% qoq vs eNuW: EUR 10.6m) and Gaming GGR that stood at EUR 1.1m (4% yoy, -15% qoq vs eNuW: EUR 0.9m). While gaming volume and gaming margin were higher than expected (EUR 11.1m vs eNuW: 10.4m and 9.8% vs eNuW: 8.4%), betting volume and margin were fully in line with estimates.

EBITDA of EUR 0.7m (-58% yoy; -13% qoq) was broadly in line (eNuW: EUR 0.8m). Lower than anticipated other operating expenses (EUR 2.6m vs eNuW: EUR 3.0m) compensated for higher marketing spending (EUR 4.5m vs eNuW: EUR 4.1m), while personnel expenses remained rather stable, as anticipated. Undiluted operating performance measured with EBITDA before special items (i.e. non-operating costs in connection with customer claims and the liquidation of the Entertainment) came in at EUR 0.2m (vs EUR 2.5m in Q1´23).

Overall, the figures indicate a solid start into the year. Ramped-up marketing spending pave the way for strong growth of betting volumes during the UEFA EURO championship in Q2/Q3, resulting in ramped-up topline (assuming stable betting margins). As we expect marketing spending to remain high throughout Q2, scale effects - also carried by taken efficiency measures, such as outsourcing and streamlining of processes - should not materialize before Q3. Taking all that into account, FY24 sales should end up at EUR 49.8m and FY24 EBITDA at EUR 1.4m, both in line with the guidance range of EUR 45-53m sales and -1m to EUR 2.5m EBITDA before special items. While the risks associated with the liquidation process of the Entertainment Ltd. and provisions for current and potential new customer claims in Austria seem to be largely under control, the new uncertainty arising from the indicative decision of The Federal Court of Justice should burden the stock for at least the next six months (eNuW), despite a sustainably profitable operating business and a negative EV.

We hence reiterate HOLD with an unchanged PT to EUR 5.50 based on FCFY´24e.

You can download the research here: http://www.more-ir.de/d/29773.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.

(END) Dow Jones Newswires

May 16, 2024 03:01 ET (07:01 GMT)