Last close As at 05/08/2026
EUR3.07
— 0.00 (0.00%)
Market capitalisation
EUR22m
Research: Consumer
bet-at-home (BAH) is a long-established sports betting brand, successfully cross-selling into gaming. Despite the impact of COVID on sports betting and regulatory (Poland and Switzerland), the revenue (GGR) decline in Q220 of 11.2% was better than expected, with improved momentum from Q120 (13.4%). The resumption of sports events in the summer provides encouragement for the remainder of FY20. Regulatory risks remain high given impending changes in BAH’s most important market, Germany. The net cash balance of €54.1m at end June 2020, equivalent to c 21% of the market cap, ensures that the prospective dividend yield of 6.6% is attractive.
bet-at-home |
Improving momentum into the end of the year
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Travel & leisure |
Deutsches Eigenkapitalforum 2020
15 October 2020 |
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Analysts
bet-at-home is a research client of Edison Investment Research Limited |
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bet-at-home (BAH) is a long-established sports betting brand, successfully cross-selling into gaming. Despite the impact of COVID on sports betting and regulatory (Poland and Switzerland), the revenue (GGR) decline in Q220 of 11.2% was better than expected, with improved momentum from Q120 (13.4%). The resumption of sports events in the summer provides encouragement for the remainder of FY20. Regulatory risks remain high given impending changes in BAH’s most important market, Germany. The net cash balance of €54.1m at end June 2020, equivalent to c 21% of the market cap, ensures that the prospective dividend yield of 6.6% is attractive.
Regulatory risks are high…
At end H120, bet-at-home’s main markets were Germany (34% of betting volume), Western Europe (53%) and Eastern Europe (13%). The mix of gross gaming revenue (GGR) between sports and e-gaming (casino, poker) was (36%, 64%) with the former skewed by the cancellation of sports events due to COVID-19. Some of its markets are fully regulated (eg the 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 with ongoing uncertainty about imminent changes in Germany, and as shown by last year’s IP blocking of overseas providers of online casinos in Switzerland.
…but FY20 guidance has been maintained
bet-at-home’s Q220 results were ahead of consensus expectations. There was improving momentum with a decline in GGR of 11.2% y-o-y vs 13.4% in Q120, albeit against an easier comparative. Excluding the well-flagged revenue losses in Poland and Switzerland, we believe that GGR grew y-o-y, which is impressive given COVID-19’s effect on sports betting. The EBITDA decline of 21.2% was helped by ongoing preservation of marketing firepower, which did not appear to affect the number of registered users (5.293 million at period end). Cash generation was strong given a net increase in cash and short-term deposits to €54.1m, leading to a distribution of €2/share. Management reiterated FY20 guidance for GGR (€120–130m) and EBITDA (€23–27m).
Valuation: FY20e EV/EVITDA 7.7x, 6.6% dividend yield
Having been weak at the start of 2020, the share price has recovered some of the losses, making the valuation more attractive on its maintained guidance, with EV/EBITDA for FY20e of 7.7x and a PE of 13.0x. Its healthy net cash position of €54.1m ensures the dividend yield for FY20e of 6.6% is well supported.
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Edison estimates
Source: Edison Investment Research |
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Research: Consumer
The 2019/20 season was typically successful from a sporting perspective, which reaffirmed Borussia Dortmund’s position as one of the leading football teams in Germany and Europe. The coming year is likely to be more challenging financially due to the operating restrictions necessitated by COVID-19, but the company is well placed to deliver a strong recovery in earnings if restrictions ease, albeit visibility on these is limited. The valuation reflects the uncertain outlook as it is trading at a significant discount to our sum-of the-parts valuation, broadly in line with historic sales multiples, and at a discount to its peers.