Original-Research: bet-at-home.com AG - from NuWays AG
07.11.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
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.
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: Buy
from: 07.11.2024
Target price: EUR 5.50
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow
Strong Q3 figures and guidance hike; chg
Topic: Yesterday bet-at-home reported a strong set of Q3 figures that are above our estimates on both - top- and bottom line. Further, it increased its EBITDA before special items guidance. In detail:
Sales came in at EUR 12.2m (-11% qoq, 18% yoy), slightly above our estimates of EUR 12.0m (eNuW), mainly driven by the UEFA EURO championship that lasted until early Q3 as well as higher marketing spending between Q3Ž23 and Q2Ž24, that prepared the UEFA EURO championship. While sales in the betting segment were EUR 10.7m (12% yoy vs eNuW: EUR 10.6m), achieved with EUR 86m betting volume and a 12.5% margin, the gaming segment contributed EUR 1.5m (103% yoy vs eNuW: EUR 1.4m), based on EUR 13m volume and an 11.1% margin.
EBITDA before special items increased to EUR 1.6m (vs -1.9m in Q3Ž23 vs eNuW: EUR 0.6m). Key drivers were higher sales as well as lower than anticipated personnel expenses (EUR 2.0m vs eNuW: EUR 2.3m), marketing expenses (EUR 3.5m vs eNuW: EUR 4.0m) and other operating expenses of EUR 2.5m (vs eNuW: EUR 3.0m). Still, due to one-offs such as EUR 4.8m for the provision for the ruling of the Swiss Federal Supreme Court in the dispute over VAT liability for sports betting which drove up other operating expenses (EUR 8.3m vs eNuW: EUR 2.7m), reported EBITDA amounted to EUR -2.7m.
With Q3 in the books, bet-at-home is heading towards the upper end of its FY24 guidance of EUR 45-53m in sales (vs eNuW old: EUR 49.8m). More importantly and thanks to the strong operating performance in the first nine months, as well as the sound start into Q4, bet-at-home increased its EBITDA before special items guidance to EUR 1.5-4.5m from EUR -1m to 2.5m (vs eNuW old: EUR 1.4m). In light of the strong Q3 figures paired with stable OPEX, we raised our estimates to EUR 50.2m in sales and EUR 2.5m in EBITDA before special items.
More tailwinds should come from a potential positive ECJ ruling, expected mid-2025, that would eliminate the looming risks of new customer claims, normalize lifted legal costs again and release provisions. On the back of the solid operating performance and vanishing sources of risks, that burdened the case for a long time, we reiterate BUY with an unchanged (but conservative) PT of EUR 5.50 based on FCFYŽ25e.
You can download the research here: http://www.more-ir.de/d/31211.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. ++++++++++
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
2024419 07.11.2024 CET/CEST
°
