bet-at-home

DE: ACXX

Market Cap€113.6m

Last Close €16.18

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 gaming company.

Investment summary

Management reduced FY21 guidance to revenue of €93–98m (previously €100–110m) and an EBITDA loss of €10–14m (profit of €8–10m previously). The guidance includes €24.6m for litigation claims re Austrian online casino. Excluded from the reduced guidance are potential gaming levies paid by bet-at-home on the player losses to be reimbursed, which management will pursue with Austrian tax authorities. We estimate these at c €18m (€24.6m provision grossed up for the 40% levy). We assume no annual dividend will be declared for FY21 due to the expected loss.

Y/E Dec	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2019A	143.3	35.2	33.1	425.53	3.8	3.8
2020A	126.9	30.9	28.8	331.92	4.9	6.3
2021E	N/A	N/A	N/A	N/A	N/A	N/A
2022E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

According to H2 Gambling Capital, the European online sports betting and gaming market is expected to grow 7.4% CAGR between 2019 and 2024. BAH operates mainly in ‘grey’ markets (no formal regulation but not illegal), which are characterised by strong cash flow, but also carry commensurately higher regulatory risks. Its main market, Germany, is becoming fully regulated in FY21.

Last updated on 20/01/2022