Original-Research: bet-at-home AG (von NuWays AG): Halten

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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 Q1Ž23).

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 FCFYŽ24e.

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
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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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-------------------transmitted by 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.

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Quelle: dpa-AFX