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

05.08.2024 / 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.

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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: 05.08.2024
Target price: EUR 5.50
Last rating change:
Analyst: Frederik Jarchow

Sound Q2 prelims above estimates

Topic: Last week bet-at-home reported a strong set of preliminary Q2 figures
above our estimates on both, top and bottom line. In detail:

Sales came in at EUR 13.7m (17% qoq, 25% yoy), significantly above our
estimates of EUR 12.7m (eNuW), mainly driven by tailwinds from the UEFA EURO
championship as well as higher marketing spending between Q3Ž23 and Q2Ž24,
that prepared the UEFA EURO championship on the one hand, but also supported
the general new customer acquisition and reactivation of existing, but
inactive customers.

EBITDA before special items of EUR 1.0m was below previous yearŽs figure of EUR
4.3m but above Q1 (EUR 0.2m) and our estimates (eNuW: EUR 0.3m). Key drivers
were lower than anticipated personnel expenses (EUR 2.2m vs eNuW: EUR 2.3m),
marketing expenses (EUR 5.8m vs eNuW: EUR 6.1m) and lower other operating
expenses of EUR 2.5m (vs eNuW: EUR 3.0m).

With Q2 in the books, bet-at-home seems fully on track to reach the upper
end of its FY24 guidance of EUR 45-53m in sales and EUR -1m to EUR 2.5m in EBITDA
before special items. Despite the fact, that we expect further positive
effects from the UEFA EURO championship and the high marketing spendings of
the last quarters that should fuel topline in Q3 and Q4, paired with stable
OPEX, our estimates remained unchanged for now at EUR 49.8m in sales and EUR
1.4m in EBITDA before special items.

More tailwinds should come from a potential positive ECJ ruling, after the
Federal Court of Justice in Germany has recently appealed the European Court
of Justice in a legal dispute over the reimbursement of losses between
2013-18 from unauthorized sports betting. 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
released. All that would bode well for (reported) EBITDA. Mind you that we
have not yet modeled in potential positive effects from the expected ruling
of the ECJ, as it is still uncertain.

As the operating performance of bet-at-home is developing nicely and all
sources of risks, that burdened the case for a long time, are seen to
vanish, 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/30363.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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1960457 05.08.2024 CET/CEST

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