Märkte & Kurse

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

26.07.2024 / 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
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Classification of NuWays AG to bet-at-home AG

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

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       26.07.2024
     Target price:               EUR 5.50
     Last rating change:
     Analyst:                    Frederik Jarchow

All eyes on the European Court of Justice; chg

Topic: Yesterday, the Federal Court of Justice in Germany announced to have
appealed the European Court of Justice in the legal dispute of a Tipico
client against Tipico over the reimbursement of losses between 2013-18 from
unauthorized sports betting, a positive x-read for bet-at-home.

The expected ruling of the ECJ should point the way for thousands of similar
cases against online betting providers in Germany, including customer claims
against bet-at-home with the latest publicly available value in dispute of EUR
1.9m. As the ECJ had already ruled in criminal proceedings that the lack of
a German license due to a non-transparent license procedure can not be held
against providers authorized in the EU, we see a significantly higher
likelihood of a ruling in favor of bet-at-home and other online betting
providers. Still, we do not expect the ECJ to rule in the case before
Q2/Q3´25. Until that, the current status of customer claims is seen to
remain rather unchanged, while new customer claims should not appear.

With a likely ruling of the ECJ in favor of the betting providers, the
current customer claims against bet-at-home and - even more importantly -
the looming risks of new customer claims would be off the table, together
with related lifted legal costs. As a result, risks and legal costs would
normalize again, and provisions would be released. All that would bode well
for EBITDA. Further, tailwinds from the UEFA EURO championship should have
fuelled betting volumes topline in Q2/Q3 (assuming stable betting margins).
Due to high expected marketing spending also throughout Q2, scale effects -
also carried by taken efficiency measures, such as outsourcing and
streamlining of processes - should not materialize before Q3. Taking all
into account, FY24 sales should still end up at EUR 49.8m and (reported)
EBITDA at EUR 1.4m, both in line with the guidance range of EUR 45-53m in sales
and -1m to EUR 2.5m in EBITDA before special items. Mind you that we have not
yet modeled in potential positive effects from the expected ruling of the
ECJ, as there is still a minor likelihood, of a ECJ ruling not in favor of
the betting providers.

Still, as of now, all sources of risk, that burdened the case for a long
time, including risks associated with the liquidation process of the
Entertainment Ldt. and provisions for current and potential new customer
claims in Austria and Germany are seen to vanish. betat-home hence turns
into a (speculative) BUY (old: HOLD) with an unchanged (but conservative) PT
of EUR 5.50 based on FCFY´24e.

You can download the research here: http://www.more-ir.de/d/30293.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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1954675 26.07.2024 CET/CEST

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