Original-Research: bet-at-home.com AG (von NuWays AG): HOLD

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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: HOLD
from: 07.03.2024
Target price: 5.50
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow

Solid FY23 prelims and FY24 guidance; chg.

Topic: Yesterday, bet-at-home reported solid FY23 prelims and released a
new guidance for FY24, which is in line with estimates. In detail:

Sales came in at EUR 46.2m (-14% yoy), slightly below our estimates of EUR
47.4m, mainly due to lower betting GGR of EUR 42.3m (-14% vs eNuW: EUR 44.5m)
that was partially compensated by Gaming GGR that stand, at EUR 3.8m (-14%
yoy vs eNuW: EUR 2.9m). but Still, sales met the management guidance of EUR
44-48m exactly at mid-point.

EBITDA of EUR 0.8m (vs EUR 2.1m in FY22) was in line with expectations (eNuW: EUR
0.7m): While personnel expenses declined as expected by 36% to EUR 8.7m
(eNuW: EUR 8.8m), other operating expenses of EUR 12.6m (-22% yoy) came in even
below our estimates (eNuW: EUR 14.2m), thanks to declining legal expenses and
efficiency measures (i.e. streamlining of operations, cost-cutting) that
bear fruit, compensating for higher marketing expenses of EUR 17.0m (25% yoy
vs eNuW: EUR 15.4m). Importantly, bet-at-home introduced the new KPI EBITDA
before special items (customer claims, liquidation of the Entertainment) in
order to show the undiluted operating performance that stand at EUR 2.4m (vs
EUR 4.4m in FY22).

With a solid transition year in the books, we expect tailwinds from the
implemented efficiency measures and 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 H1Ž24, paving the way
to a successful UEFA EURO championship. bet-at-home should hence easily
reach its FY24 sales guidance of EUR 45-53m (eNuW: EUR 50m) and its EBITDA
guidance before special items of -1m to EUR 2.5m.

Still, the risks associated with the liquidation process of the
Entertainment Ldt. and provisions for current and potential new customer
claims are for now limiting the share's upside. Positively, we assume that
only a small portion of the receivables against the Entertainment Ldt. are
at risk and that customer claims should have stabilized. That said and
taken into account a worst-case scenario, the EV should be still clearly
negative, despite a sustainably profitable operating business.
Unfortunately, both topics should weigh on the case throughout FY24.

In order to reflect the small but incalculable risk from customer claims,
we reiterate HOLD but increase our PT to EUR 5.50 (old: EUR 3.80) rolling over
valuation to FCFYŽ24e.

You can download the research here:
http://www.more-ir.de/d/29089.pdf
For additional information visit our website
www.nuways-ag.com/research.

Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
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