Last close As at 24/08/2026
EUR3.44
▲ 0.28 (8.86%)
Market capitalisation
EUR23m
Research: Consumer
bet-at-home is a long-established sports betting brand, successfully crossselling into gaming. On the back of the FIFA World Cup, the company has produced a strong Q318, with gross gaming revenues (GGR) of €37.6m and a record EBITDA of €13.0m. Regulatory risks remain high, as witnessed by last year’s IP blocking in Poland, but we are encouraged that FY18 guidance has been maintained. Largely due to regulatory concerns, the stock is down c 40% ytd, trading at 9.4x EV/EBITDA and 12.5x P/E for 2018e. This is at the top end of the peer group, but the company’s strong cash position and ability to pay special dividends is very attractive.
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bet-at-home is a client of Edison Investment Research Limited |
Guidance maintained with strong Q318
bet-at-home is a long-established sports betting brand, successfully cross-selling into gaming. On the back of the FIFA World Cup, the company has produced a strong Q318, with gross gaming revenues (GGR) of €37.6m and a record EBITDA of €13.0m. Regulatory risks remain high, as witnessed by last year’s IP blocking in Poland, but we are encouraged that FY18 guidance has been maintained. Largely due to regulatory concerns, the stock is down c 40% ytd, trading at 9.4x EV/EBITDA and 12.5x P/E for 2018e. This is at the top end of the peer group, but the company’s strong cash position and ability to pay special dividends is very attractive.
Regulatory risks are high…
At H118, bet-at-home’s main markets were Germany (36% of gross win), Austria (31%) and Eastern Europe (18%). The mix of GGR between sports and e-gaming (casino, poker) was 43/57%, demonstrating successful cross-selling into gaming. Some of its markets are fully regulated (eg UK), but formal licensing has not yet been introduced in many of its main markets, where it pays taxes and VAT as applicable and operates under its EU licence. Regulatory risks are high, as shown by last year’s IP blocking in Poland, with similar proposals (subsequently withdrawn) in Austria. In addition, Switzerland recently voted against foreign providers of online casinos (c 3% revenues).
…but guidance has been maintained
On the back of the FIFA World Cup, bet-at-home has produced a strong Q318, with €37.6m GGR and an EBITDA of €13.0m. This compares to €1.6m EBITDA in Q218, which was affected by the majority of World Cup marketing costs. For the nine months, this equates to a €104.2m GGR (vs €108.7m in 2017) and €23.9m EBITDA (vs €25.4m in 2017). Despite the increased regulatory challenges and higher levels of gaming taxes across its markets, we are very encouraged that management has reiterated FY18 guidance of €150m GGR and €36–40m EBITDA. This is slightly higher than recently lowered consensus and assumes an unchanged regulatory environment.
Valuation: 12.5x P/E, 10.7% dividend yield for FY18e
bet-at-home’s shares have fallen c 40% ytd, largely due to regulatory concerns across many of its key markets. On consensus figures, the stock now trades at 9.4x EV/EBITDA and 12.5x P/E for 2018e, which is at the top end of the peer group. However, its healthy cash position and ability to pay special dividends is very attractive and the dividend yield for FY18e is 10.7%.
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Consensus estimates
Source: Bloomberg, Edison Investment Research |
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CO.DON is a manufacturer of autologous cell therapies for the treatment of cartilage defects. The main product, Spherox, is based on the core
spheroid technology and can repair cartilage defects of the knee via a minimally invasive procedure. After accumulating supportive data from the Phase III (ongoing) and the Phase II ‘co.dis’ (successfully completed this year) trials, CO.DON obtained marketing authorisation from the EMA in July 2017 and is now rolling out Spherox in several European markets. This has been slower than initially expected due to the transition period from the older product and reimbursement issues, but the company expects progress by the end of Q318 and guides break-even by 2021.