cards-casino-chance-269630

bet-at-home

DE: ACXX

€456.2m market cap

€65 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) has started the year very well, with Q119 gross gaming revenues (GGR) increasing by 12.1% y-o-y to €37.2m, and an EBITDA of €12.7m. This is especially encouraging in light of management’s recent guidance of €130–143m GGR (0–10% decline) and an EBITDA of €29–33m for FY19. While this guidance seems conservative, we are leaving our forecasts broadly unchanged until there is further clarity on the impact of the Swiss IP blocking. The stock trades at 13.1x EV/EBITDA and 18.1x P/E for FY19e, which is at the top of the peer group, although its ability to pay high dividends is very attractive.

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 13.5 N/A
2018A 143.4 36.2 35.0 464.68 14.0 N/A
2019E 136.9 31.6 29.6 388.59 16.7 N/A
2020E 140.3 32.1 30.2 395.31 16.4 N/A
Last updated on 23/05/2019
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 23/05/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 49.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.8) 9.0 (22.9)
Relative* (5.6) 4.5 (16.3)
52-week high/low €79.8/€44.3
*% relative to local index
Key management
Franz Oemer CEO
Michael Quatember CEO