Smartbroker announced to have made significant progress regarding the migration of customers, transactions and AuC´s from SB1 (old Smartbroker) to Smartbroker+:

65% of active SB1 customers successfully migrated. This translates into 90k of the former 228k customers (excl. 44k FondDiscount customers that were not part of the migration), while 79k inactive customers (c. 1/3 = industry average) were deleted and 44k were not yet migrated. Importantly, the migrated customers executed 2.4m of the 3.6m annual transactions (66%; not including 0.6m from FD).

76% of AuC´s already transferred. € 5.4bn of the € 7.1bn AuC´s are now at accounts of the new partner Baader Bank, while the remaining € 1.7bn are custodied by DAB. The additional € 2.3bn from FondDiscount are not considered in these figures.

With that, the migration targets are largely met. Importantly, Smartbroker announced to have renewed the agreement with DAB. Hence, active customers that have not yet migrated can stay with DAB (serviced by Smartbroker) as long as they wish to. Consequently, Smartbroker should not loose any active customer because of the migration. This is good news as it was unclear what happened with these customers and the market partially expected the loss of these customers.

Given the current market situation, paired with additional development costs for Smartbroker+, we consider 2023 as transition year, expecting € 50.4m in sales and € 0.3m in EBITDA, in line with management's guidance. Looking into 2024, Smartbroker is seen to be the growth driver of the Group, as Smartbroker+ is offering a unique combination of the service range of an established full-service broker at a neobroker pricing that should drive customer inflows and transactions.

Once marketing spending kicks in (eNuW: € 11.1m in 2024) the synergy effects between the Media segment and the Smartbroker should fuel both segments: While CAC of Smartbroker should decline, thanks to the reach of the media portals, new customer of Smartbroker are expected to mainly use the embedded media portals within the app, increasing page views and interactions and making the portals more attractive for advertisers.

The investment case remains fully intact. BUY with unchanged PT of € 15, based on DCF.