Bet-at-home.com AG Maintains Stable Position with Updated FY24 Guidance

NuWays AG, in its latest research report, provides an update on bet-at-home.com AG with a "HOLD" recommendation and a revised target price of €5.50. The analyst, Frederik Jarchow, forecasts a promising outlook for the company despite its challenges.

bet-at-home reported its FY23 preliminary results, showcasing a sales total of €46.2m—a 14% decline year-over-year but aligning with their guidance. A significant factor in their performance was the decline in betting GGR to €42.3m and Gaming GGR to €3.8m. The adjusted EBITDA of €0.8m met expectations, attributed to reduced personnel expenses and operational efficiencies.

In light of a solid transitional year, bet-at-home anticipates positive outcomes from its efficiency measures and process outsourcing in FY24. The focus on enhancing marketing efforts should lead to successful participation in the UEFA EURO championship, supporting their sales guidance of €45-53m and an EBITDA range of -€1m to €2.5m before special items.

However, risks related to the liquidation of the Entertainment Ltd and potential customer claims are expected to marginally impact the company’s stock potential in FY24. Despite these concerns, bet-at-home’s operational business remains sustainably profitable, with a nuanced but manageable risk from customer claims.