Positive Outlook for Bet-at-home AG Following European Court Appeal

NuWays AG has updated its recommendation for bet-at-home AG to "BUY" as of July 26, 2024. This follows the announcement that Germany's Federal Court of Justice has appealed to the European Court of Justice regarding a legal dispute over unauthorized sports betting losses. A favorable ruling for bet-at-home AG could significantly benefit the company.

The European Court of Justice's decision could impact numerous similar cases, including claims worth €1.9 million pending against bet-at-home. A positive verdict would likely lessen the legal and financial risks faced by the company, normalizing costs and potentially increasing EBITDA.

Additionally, the UEFA EURO championship is expected to boost betting volumes, contributing to bet-at-home's projected FY24 sales of €49.8 million and EBITDA of €1.4 million, both within the guidance range. Marketing expenses and efficiency measures, however, may delay the realization of scale effects until later in the year.