Currency in EUR
Last close As at 07/06/2023
EUR4.65
▲ −0.04 (−0.85%)
Market capitalisation
EUR33m
Research: Consumer
bet-at-home’s (BAH’s) Q322 profitability was helped by cost-saving initiatives, particularly lower personnel expenditure, which offset lower quarter-on-quarter betting volumes. After the Q322 update, management raised FY22 gross gaming revenue (GGR) guidance due to positive trading around the FIFA World Cup. Management has maintained FY22 EBITDA guidance, which includes ongoing uncertainty from the effect of risk provisions associated with former business activities, and the effect of increased marketing spend for the tournament.
bet-at-home |
Travel and leisure |
Spotlight - Update
12 December 2022 |
Share price graph Share details
Business description
Bull
Bear
Analysts
bet-at-home is a research client of Edison Investment Research Limited
|
Share price graph Share details
Business description
Bull
Bear
Analysts
bet-at-home is a research client of Edison Investment Research Limited
|
bet-at-home’s (BAH’s) Q322 profitability was helped by cost-saving initiatives, particularly lower personnel expenditure, which offset lower quarter-on-quarter betting volumes. After the Q322 update, management raised FY22 gross gaming revenue (GGR) guidance due to positive trading around the FIFA World Cup. Management has maintained FY22 EBITDA guidance, which includes ongoing uncertainty from the effect of risk provisions associated with former business activities, and the effect of increased marketing spend for the tournament.
Consensus estimates
Source: Refinitiv. Note: *Gross gaming revenue. **Restated figures. |
FY22 GGR guidance raised
Lower volumes in Q322
GGR fell 2% q-o-q to €12.4m (Q222: €12.6m) driven by lower betting volumes in the quarter. However, net gaming revenue rose 0.7% to €9.9m (Q222: €9.8m) as a result of lower betting fees in the period. EBITDA was down 52% q-o-q to €1.2m (Q222: €2.5m) due to higher marketing costs, ramped up ahead of the FIFA World Cup (Q422). The elevated marketing costs will be largely amortised in FY23. For the first nine months of FY22 GGR stood at €39.1m and EBITDA at €2.2m. BAH’s cash position improved during the quarter to €34.5m (H122: €32.6m), although this is before pending bets.
Elevated marketing spend for FIFA World Cup
Post the Q322 results, management has raised FY22 GGR guidance due to the FIFA World Cup, expecting GGR of €52–54m (previously €45–50m). EBITDA guidance is unchanged at a loss of €2–4.5m (including €1.7m negative impact from discontinued operations) given the ongoing uncertainty around the former business activities. Q322 marketing expenditure increased as a proportion of GGR q-o-q to 24% (Q222: 18%); however, this was lower than spend in the quarters before Euro 2020 (35% of GGR in Q221) and FIFA World Cup 2018 (40% of GGR in Q218), as the current tournament is later in the year than usual. Synergies from the outsourcing of the sports and gaming platform to EveryMatrix are expected to be realised in Q123.
Valuation: Discount to peers despite cash position
BAH’s share price has reacted positively following the Q322 results and the updated guidance. Despite the strong cash position (c 61% of current market value), BAH remains at a marked discount to peers on CY22e and CY23e EV/Sales multiples of 82% and 79%.
|
|
Research: Financials
Lending growth in the August to December period has been ahead of our expectation, while credit quality in both motor finance and property bridging remains strong. S&U is sensitive to the macroeconomic background and continues to adjust its lending criteria accordingly to protect customers and credit performance. This provides a sound basis for further sustainable growth.
Get access to the very latest content matched to your personal investment style.