Original-Research: bet-at-home AG (von NuWays AG): Halten
Source: EQSClassification of
Company
ISIN: DE000A0DNAY5
Reason for the research: Update
Recommendation: Halten
from:
Target price:
Target price on sight of: 12 Monaten
Last rating change:
Analyst:
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 € 11.7m (-12% yoy, 1% qoq), slightly above our estimates of € 11.5m, driven by the Betting GGR of € 10.6m (-13% yoy, 2% qoq vs eNuW: € 10.6m) and Gaming GGR that stood at € 1.1m (4% yoy, -15% qoq vs eNuW: € 0.9m). While gaming volume and gaming margin were higher than expected (€ 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 € 0.7m (-58% yoy; -13% qoq) was broadly in line (eNuW: € 0.8m). Lower than anticipated other operating expenses (€ 2.6m vs eNuW: € 3.0m) compensated for higher marketing spending (€ 4.5m vs eNuW: € 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 € 0.2m (vs € 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 € 49.8m and FY24 EBITDA at € 1.4m, both in line with the guidance
range of € 45-53m sales and -1m to € 2.5m EBITDA before special items.
While the risks associated with the liquidation process of the
We hence reiterate HOLD with an unchanged PT to € 5.50 based on FCFY´24e.
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http://www.more-ir.de/d/29773.pdf
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Contact for questions
Web: www.nuways-ag.com
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LinkedIn: https://www.linkedin.com/company/nuwaysag
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