Topic: bet-at-home reported final FY23 figures fully in line with prelims. Importantly, the report provide us with an update regarding receivables and liabilities against the Entertainment as well as regarding customer claims in Austria and Germany. In detail:

Sales came in at € 46.2m (-14% yoy), fully in line with prelims (€ 46.2m), driven by Betting GGR of € 42.3m (-14% yoy) and Gaming GGR that stand at € 3.8m (-14% yoy).

EBITDA of € 0.8m (vs € 2.1m in FY22) was also fully in line prelims (€ 0.8m). due to declining personnel expenses (-36%) and other operating expenses (-22% yoy), compensating for the softer topline. Importantly, leaving aside non-operating costs in connection with customer claims and the liquidation of the Entertainment, bet-at-home even achieve an undiluted operating performance (EBITDA before special items) of € 2.4m (vs € 4.4m in FY22).

With an after all solid transition year 2023 in the books, we expect further tailwinds from the taken efficiency measures as well as from the outsourcing and streamlining of processes that should show its full effect in FY24. Further, higher marketing spending in Q3/Q4´23 should materialize in H1, paving the way to a successful UEFA EURO championship. That, paired with an industry showing avg mid- to high single-digit growth rates, bet-at-home provide confidence that bet-at-home should reach its new sales guidance of € 45-53m (eNuW: € 50m), as well as its guidance for EBITDA before special items of -1m to € 2.5m, easily.

Also risks associated with the liquidation process of the Entertainment Ldt. and provisions for current and potential new customer claims in Austria are largely under control. Unfortunately, the indicative decision of The Federal Court of Justice in Germany a couple of weeks ago, saying that sports betting provider without a license should be in principle be liable to pay a refund, brings new uncertainty of new customer claims to the case. This should burden the stock for at least the next six month (eNuW), despite a sustainably profitable operating business and a negative EV.

Reflecting the new risks stemming from the indicative decision of The Federal Court of Justice, we reiterate HOLD with an unchanged PT to € 5.50 based on FCFY´24e.