Last close As at 05/08/2026
EUR3.07
— 0.00 (0.00%)
Market capitalisation
EUR22m
Research: Consumer
bet-at-home (BAH) has reported Q319 gross gaming revenues (GGR) of €35.7m and EBITDA of €5.6m, slightly above our estimates. We are therefore raising our FY19 GGR and EBITDA forecasts by 4.4% and 2.5%, respectively, so that they are now at the top end of guidance. As disclosed in September, BAH is liable for €11.9m of Austrian tax back payments and annual tax will also rise by c €5m, which reduces our normalised FY19 EPS by 16.6%. Including the tax liability, net cash was €33.3m at Q3119. Given the negative tax news, we now forecast a prospective dividend of €4/share (rather than €5/share) which equates to an 8.2% dividend yield.
Written by
bet-at-home |
On target to reach top end of guidance |
Q319 results |
Travel & leisure |
4 November 2019 |
Share price performance
Business description
Next events
Analysts
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bet-at-home (BAH) has reported Q319 gross gaming revenues (GGR) of €35.7m and EBITDA of €5.6m, slightly above our estimates. We are therefore raising our FY19 GGR and EBITDA forecasts by 4.4% and 2.5%, respectively, so that they are now at the top end of guidance. As disclosed in September, BAH is liable for €11.9m of Austrian tax back payments and annual tax will also rise by c €5m, which reduces our normalised FY19 EPS by 16.6%. Including the tax liability, net cash was €33.3m at Q3119. Given the negative tax news, we now forecast a prospective dividend of €4/share (rather than €5/share) which equates to an 8.2% dividend yield.
Year end |
Revenue (GGR**) (€m) |
EBITDA |
EPS* |
DPS |
P/E |
Yield |
12/17 |
145.4 |
36.4 |
4.81 |
7.50 |
10.2 |
15.3 |
12/18 |
143.4 |
36.2 |
4.65 |
6.50 |
10.5 |
13.3 |
12/19e |
142.9 |
32.9 |
3.31 |
4.00 |
14.8 |
8.2 |
12/20e |
143.1 |
33.1 |
3.37 |
4.00 |
14.5 |
8.2 |
Note: *EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Increased estimates still assume weak Q4
Against the tough backdrop of the 2018 Football World Cup and Swiss IP blocking (from July 2019), BAH reported an encouraging set of Q319 results. GGR declined by 5.1% to €35.7m and EBITDA was €5.6m, both of which were slightly higher than our expectations. Total customers reached 5.2m, helped by a high level of marketing spend (35.3% of GGR). Management has reiterated FY19 guidance of €130–143m GGR and EBITDA of €29–33m. This compares to €106.8m GGR and €27.0m EBITDA already achieved this year. We are raising our FY19 GGR and EBITDA estimates by 4.4% and 2.5% respectively and we are now at the top end of guidance, which still implies a very negative impact from Swiss IP blocking in Q419.
bet-at-home is a research client of Edison Investment Research Limited
Austrian taxes impact net cash and future EPS
As disclosed in September, BAH has had ongoing tax discussions in Austria and is now liable for €11.9m of back payments for the period 2013–18. In addition, future taxes are expected to be €5m higher annually. The back payment is excluded from our normalised EPS but we have lowered our FY19 and FY20 EPS estimates by 16.6% and 15.8% respectively, largely as a reflection of the annual increase. BAH ended Q319 with net cash of €33.3m (including the €11.9m tax liability and excluding €7.9m customer cash). Although timing for the back payment remains unclear, we are assuming cash payment in Q419.
Valuation: 8.2% prospective dividend yield
BAH trades at 9.4x EV/EBITDA and 14.5x P/E for FY20e, which is towards the top end of the peer group, but its net cash position remains healthy (despite the increased tax) and the 8.2% prospective dividend yield is very attractive. In our view, a major catalyst would be concrete evidence of positive regulation in core markets, especially for German e-gaming (casino).
Exhibit 1: Financial summary
€'m |
2014 |
2015 |
2016 |
2017 |
2018 |
2019e |
2020e |
2021e |
||
31-December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||||||
Revenue (GGR) |
|
|
107.0 |
121.6 |
138.7 |
145.4 |
143.4 |
142.9 |
143.1 |
146.0 |
Cost of Sales |
(12.3) |
(21.3) |
(25.8) |
(27.6) |
(28.2) |
(25.8) |
(26.7) |
(27.3) |
||
Net Gaming Revenue |
94.7 |
100.3 |
112.9 |
117.8 |
115.1 |
117.1 |
116.4 |
118.7 |
||
EBITDA |
|
|
26.8 |
31.6 |
33.0 |
36.4 |
36.2 |
32.9 |
33.1 |
34.5 |
Normalised operating profit |
|
|
25.9 |
30.7 |
31.9 |
35.1 |
34.9 |
31.1 |
31.1 |
32.5 |
Amortisation of acquired intangibles |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Exceptionals |
(0.1) |
0.1 |
0.0 |
(0.9) |
0.0 |
0.0 |
0.0 |
0.0 |
||
Share-based payments |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Reported operating profit |
25.8 |
30.8 |
31.9 |
34.1 |
34.9 |
31.1 |
31.1 |
32.5 |
||
Net Interest |
1.7 |
2.2 |
2.2 |
1.5 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
27.5 |
32.9 |
34.1 |
36.6 |
35.0 |
31.1 |
31.1 |
32.5 |
Profit Before Tax (reported) |
|
|
27.5 |
32.9 |
34.1 |
35.7 |
35.0 |
31.1 |
31.1 |
32.5 |
Reported tax |
(1.8) |
(2.3) |
(3.1) |
(2.8) |
(2.4) |
(19.7) |
(7.5) |
(7.8) |
||
Profit After Tax (norm) |
25.7 |
30.6 |
31.0 |
33.8 |
32.6 |
23.2 |
23.7 |
24.7 |
||
Profit After Tax (reported) |
25.6 |
30.7 |
31.0 |
32.8 |
32.6 |
11.3 |
23.7 |
24.7 |
||
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Discontinued operations |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
25.7 |
30.6 |
31.0 |
33.8 |
32.6 |
23.2 |
23.7 |
24.7 |
||
Net income (reported) |
25.6 |
30.7 |
31.0 |
32.8 |
32.6 |
11.3 |
23.7 |
24.7 |
||
Basic average number of shares outstanding (m) |
7.0 |
7.0 |
7.0 |
7.0 |
7.0 |
7.0 |
7.0 |
7.0 |
||
EPS - basic normalised (€) |
|
|
3.66 |
4.36 |
4.42 |
4.81 |
4.65 |
3.31 |
3.37 |
3.52 |
EPS - diluted normalised (€) |
|
|
3.66 |
4.36 |
4.42 |
4.81 |
4.65 |
3.31 |
3.37 |
3.52 |
EPS - basic reported (€) |
|
|
3.65 |
4.37 |
4.42 |
4.68 |
4.65 |
1.62 |
3.37 |
3.52 |
Dividend (€) |
0.60 |
2.25 |
7.50 |
7.50 |
6.50 |
4.00 |
4.00 |
4.00 |
||
Revenue growth (%) |
25.0 |
13.6 |
14.0 |
4.8 |
(1.4) |
(0.3) |
0.2 |
2.0 |
||
Gross Margin (%) |
88.5 |
82.5 |
81.4 |
81.0 |
80.3 |
82.0 |
81.3 |
81.3 |
||
EBITDA Margin (%) |
25.0 |
26.0 |
23.8 |
25.0 |
25.3 |
23.0 |
23.1 |
23.6 |
||
Normalised Operating Margin |
24.2 |
25.2 |
23.0 |
24.1 |
24.4 |
21.7 |
21.7 |
22.2 |
||
BALANCE SHEET |
||||||||||
Fixed Assets |
|
|
4.5 |
4.8 |
4.9 |
4.0 |
3.4 |
7.1 |
6.1 |
5.1 |
Intangible Assets |
2.4 |
2.2 |
2.0 |
2.0 |
2.0 |
2.1 |
2.3 |
2.5 |
||
Tangible Assets |
2.1 |
2.6 |
2.9 |
2.0 |
1.4 |
5.0 |
3.8 |
2.6 |
||
Investments & other |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Current Assets |
|
|
89.9 |
123.3 |
140.5 |
120.6 |
99.9 |
68.8 |
66.4 |
65.0 |
Stocks |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Debtors |
57.9 |
70.7 |
47.9 |
16.9 |
20.1 |
22.0 |
25.0 |
28.0 |
||
Cash & cash equivalents |
21.8 |
40.7 |
82.3 |
94.4 |
70.6 |
36.3 |
30.9 |
26.5 |
||
Customer cash |
9.7 |
9.4 |
9.5 |
7.5 |
7.7 |
8.0 |
8.0 |
8.0 |
||
Other |
0.5 |
2.5 |
0.7 |
1.8 |
1.5 |
2.5 |
2.5 |
2.5 |
||
Current Liabilities |
|
|
(27.0) |
(32.7) |
(35.7) |
(35.3) |
(34.0) |
(33.4) |
(34.4) |
(35.4) |
Creditors |
(1.3) |
(1.0) |
(0.5) |
(1.8) |
(3.3) |
(4.3) |
(5.3) |
(6.3) |
||
Short term provisions/ tax liabilities |
(14.1) |
(19.9) |
(21.4) |
(22.6) |
(19.2) |
(17.1) |
(17.1) |
(17.1) |
||
Short term borrowings |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Other |
(11.5) |
(11.8) |
(13.9) |
(10.9) |
(11.5) |
(12.0) |
(12.0) |
(12.0) |
||
Long Term Liabilities |
|
|
(0.1) |
(0.0) |
(0.1) |
(0.0) |
(0.0) |
(4.0) |
(4.0) |
(4.0) |
Long term borrowings |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Other long term liabilities |
(0.1) |
(0.0) |
(0.1) |
(0.0) |
(0.0) |
(4.0) |
(4.0) |
(4.0) |
||
Net Assets |
|
|
67.5 |
95.3 |
109.6 |
89.3 |
69.3 |
38.5 |
34.1 |
30.7 |
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Shareholders' equity |
|
|
67.5 |
95.3 |
109.6 |
89.3 |
69.3 |
38.5 |
34.1 |
30.7 |
CASH FLOW |
||||||||||
Op Cash Flow before WC and tax |
26.8 |
31.6 |
33.0 |
36.4 |
36.2 |
32.9 |
33.1 |
34.5 |
||
Working capital |
(4.4) |
(3.6) |
(0.1) |
(2.4) |
(6.5) |
(0.9) |
(2.0) |
(2.0) |
||
Exceptional & other |
5.8 |
5.9 |
0.4 |
(0.4) |
0.0 |
0.0 |
0.0 |
0.0 |
||
Tax |
(1.8) |
(2.3) |
(3.1) |
(2.8) |
(5.0) |
(19.7) |
(7.5) |
(7.8) |
||
Net operating cash flow |
|
|
26.4 |
31.7 |
30.2 |
30.8 |
24.8 |
12.3 |
23.7 |
24.7 |
Capex |
0.0 |
0.0 |
0.0 |
0.0 |
(0.7) |
(1.0) |
(1.0) |
(1.0) |
||
Acquisitions/disposals |
(2.4) |
(1.1) |
(1.3) |
(0.5) |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net interest |
2.2 |
2.2 |
0.3 |
1.5 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Equity financing |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Dividends |
(2.8) |
(4.2) |
(15.8) |
(52.6) |
(52.6) |
(45.6) |
(28.1) |
(28.1) |
||
Other |
(15.0) |
(9.6) |
28.2 |
33.0 |
4.7 |
0.0 |
0.0 |
0.0 |
||
Net Cash Flow |
8.4 |
19.0 |
41.6 |
12.1 |
(23.8) |
(34.3) |
(5.4) |
(4.4) |
||
Opening net debt/(cash) |
|
|
(13.4) |
(21.8) |
(40.7) |
(82.3) |
(94.4) |
(70.6) |
(36.3) |
(30.9) |
FX |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Other non-cash movements |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Closing net debt/(cash) |
|
|
(21.8) |
(40.7) |
(82.3) |
(94.4) |
(70.6) |
(36.3) |
(30.9) |
(26.5) |
Source: BAH accounts, Edison Investment Research
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After receiving two CE marks for the Actiste device, Brighter is registering the product with local authorities in the United Arab Emirates (UAE). On introduction to the market, it will conduct user experience pilot tests to optimise adoption. Following the UAE, the company plans to focus its commercialisation efforts on Sweden, the rest of the Gulf Cooperation Council (GCC) area and South-East Asia (particularly Thailand and Indonesia).