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bet-at-home

DE: ACXX

€339.7m market cap

€48.4 last close

Founded in 1999, bet-at-home is an online sports betting and gaming company with c 300 employees. It is licensed in Malta and headquartered in Dusseldorf, Germany. Since 2009 bet-at-home has been part of Betclic Everest, a privately owned French online gaming company.

Investment summary

Online gaming legislation varies widely across Europe and bet-at-home (BAH) focuses predominantly on grey (or ambiguous) markets. At H119, the company’s core markets were Germany (35% of gross win), Austria (c 30%) and Eastern Europe, and this report provides further detail on recent regulatory changes (particularly in Germany). BAH is a strong brand with 5m customers, a capital light model and high cash generation. The stock trades at 9.9x EV/EBITDA and 13.0x P/E for FY20e with an attractive 9.6% prospective dividend yield.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 145.4 36.4 36.6 481.22 10.1 N/A
2018A 143.4 36.2 35.0 464.68 10.4 N/A
2019E 136.9 32.1 30.3 396.62 12.2 N/A
2020E 140.3 32.4 30.5 399.82 12.1 N/A
Last updated on 18/09/2019
Industry outlook

According to H2 Gambling Capital (H2GC), the European online sports betting and gaming market is expected to grow 6.5% CAGR between 2018 and 2023 to c €33bn. Across Europe, there are a myriad of different regulatory frameworks in place, for both e-gaming and sports betting. BAH operates in ‘grey’ markets (no formal regulation but not illegal). These notably include Germany (36% of gross win), Austria (30% of gross win) and Eastern Europe (19% of gross win).

Last updated on 18/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 49.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (8.5) (6.7) (20.5)
Relative* (14.6) (7.2) (22.0)
52-week high/low €73.6/€44.3
*% relative to local index
Key management
Franz Oemer CEO
Michael Quatember CEO