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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-homeŽs 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 H1Ž24 (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 FCFYŽ25e.
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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-------------------transmitted by EQS Group AG.-------------------
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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