cards-casino-chance-269630

bet-at-home

DE: ACXX

€323.8m market cap

€46.14 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

bet-at-home (BAH) is a long-established sports betting brand, successfully cross-selling into gaming. Against the tough backdrop of the 2018 World Cup and Swiss IP blocking (from July 2019), BAH reported an encouraging set of Q319 results and now has 5.2m customers. Regulatory risks remain high, as witnessed by the IP blocking in Switzerland but FY19 guidance continues to look conservative. The stock was affected by September’s announcement of increased taxes in Austria but the net cash balance remains healthy and the stock trades at an attractive 8.2% 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 36.6 481.0 9.6 N/A
2018A 143.4 36.2 35.0 465.0 9.9 N/A
2019E 142.9 32.9 31.1 331.0 14.0 N/A
2020E 143.1 33.1 31.1 337.0 13.7 N/A
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 15/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 36.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.6) (11.5) (15.7)
Relative* (8.6) (22.9) (27.0)
52-week high/low €73.6/€44.3
*% relative to local index
Key management
Franz Oemer CEO
Michael Quatember CEO

Content on bet-at-home