Original-Research: bet-at-home AG (von NuWays AG): HOLD

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Original-Research: bet-at-home AG - from NuWays AG

Classification of NuWays AG to bet-at-home AG

Company Name: bet-at-home AG

ISIN: DE000A0DNAY5

Reason for the research: Update

Recommendation: HOLD

from: 17.07.2024

Target price: EUR 5.50

Last rating change:

Analyst: Frederik Jarchow

Negative ruling in dispute over Swiss VAT liability; chg

Topic: Swiss Federal Supreme Court does not rule in favour of the

bet-at-home subsidiary bet-at-home Internet in the first instance in the

dispute over the VAT liability of sports betting.

The Swiss Federal Tax Administration ('ESTV') assumes that the offer of

sports betting in Switzerland by bet-at-home´s subsidiary, bet-at-home.com

Internet Ltd., Malta, is subject to VAT. Consequently, the company should

be entered in the register of companies liable for VAT. Further, the ESTV

has assessed tax claims for the payment of VAT for the tax periods 2013 to

2017. bet-at-home takes a contrary view on the whole matter, first filed

objection with the ESTV before filing a complaint with the court.

The ruling in first instance (not legally binding) rejected the complaint

of bet-at-home, but emphasized that the statue of limitations has already

expired for 2013. bet-at-home is now examining its legal options as well as

the potential impact on the given guidance for FY24. In case bet-at-home

would accept the ruling in first instance, it would have to pay EUR 1.3m for

the tax years 2014-17 and another EUR 2.7m for 2018 to H1´24 (excl. interest

costs). Nevertheless, the company does not expect any immediate

cashoutflows. In order to reflect the ruling, we increased provisions and

operating expenses in FY24 and and reduced reported EBITDA estimates

respectively. As we consider the potential costs as "special items" (i.e.

non-operating costs in connection with claims and the liquidation of the

Entertainment), EBITDA before special items should remain unaffected after

all (eNuW).

Apart from that, the UEFA EURO championship should have fueled betting

volumes topline in Q2/Q3 (assuming stable betting margins). Due to high

expected marketing spending also throughout Q2, scale effects - also

carried by imposed efficiency measures, such as outsourcing and

streamlining of processes - should not materialize before Q3. Taking all

into account, FY24 sales should still end up at EUR 49.8m in line with the

guidance range of EUR 45-53m, (reported) EBITDA is now seen at EUR 1.4m, below

the guidance of -1m to EUR 2.5m in EBITDA (before special items).

While the risks associated with the liquidation process of the

Entertainment Ldt. and provisions for current and potential new customer

claims in Austria seem to be largely under control, the uncertainty in

Germany remains after the indicative decision of The Federal Court of

Justice.

HOLD with an unchanged PT to EUR 5.50 based on FCFY´25e.

You can download the research here:

http://www.more-ir.de/d/30223.pdf

For additional information visit our website

www.nuways-ag.com/research.

Contact for questions

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The issuer is solely responsible for the content of this research.

The result of this research does not constitute investment advice

or an invitation to conclude certain stock exchange transactions.

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