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

07.11.2024 / 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.com AG

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

Reason for the research: Update
Recommendation: Buy
from: 07.11.2024
Target price: EUR 5.50
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow

Strong Q3 figures and guidance hike; chg

Topic: Yesterday bet-at-home reported a strong set of Q3 figures that are
above our estimates on both - top- and bottom line. Further, it increased
its EBITDA before special items guidance. In detail:

Sales came in at EUR 12.2m (-11% qoq, 18% yoy), slightly above our estimates
of EUR 12.0m (eNuW), mainly driven by the UEFA EURO championship that lasted
until early Q3 as well as higher marketing spending between Q3Ž23 and Q2Ž24,
that prepared the UEFA EURO championship. While sales in the betting segment
were EUR 10.7m (12% yoy vs eNuW: EUR 10.6m), achieved with EUR 86m betting volume
and a 12.5% margin, the gaming segment contributed EUR 1.5m (103% yoy vs eNuW:
EUR 1.4m), based on EUR 13m volume and an 11.1% margin.

EBITDA before special items increased to EUR 1.6m (vs -1.9m in Q3Ž23 vs eNuW:
EUR 0.6m). Key drivers were higher sales as well as lower than anticipated
personnel expenses (EUR 2.0m vs eNuW: EUR 2.3m), marketing expenses (EUR 3.5m vs
eNuW: EUR 4.0m) and other operating expenses of EUR 2.5m (vs eNuW: EUR 3.0m).
Still, due to one-offs such as EUR 4.8m for the provision for the ruling of
the Swiss Federal Supreme Court in the dispute over VAT liability for sports
betting which drove up other operating expenses (EUR 8.3m vs eNuW: EUR 2.7m),
reported EBITDA amounted to EUR -2.7m.

With Q3 in the books, bet-at-home is heading towards the upper end of its
FY24 guidance of EUR 45-53m in sales (vs eNuW old: EUR 49.8m). More importantly
and thanks to the strong operating performance in the first nine months, as
well as the sound start into Q4, bet-at-home increased its EBITDA before
special items guidance to EUR 1.5-4.5m from EUR -1m to 2.5m (vs eNuW old: EUR
1.4m). In light of the strong Q3 figures paired with stable OPEX, we raised
our estimates to EUR 50.2m in sales and EUR 2.5m in EBITDA before special items.

More tailwinds should come from a potential positive ECJ ruling, expected
mid-2025, that would eliminate the looming risks of new customer claims,
normalize lifted legal costs again and release provisions. On the back of
the solid operating performance and vanishing sources of risks, that
burdened the case for a long time, 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/31211.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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2024419 07.11.2024 CET/CEST

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