bet-at-home - Looking for a stronger performance in H218

bet-at-home is a long-established sports betting brand, successfully cross-selling into gaming. As a result of last year’s IP blocking in Poland, Q218 gross gaming revenues (GGR) declined 15.6% to €33.4m. EBITDA was additionally affected by FIFA World Cup marketing spend but management has reiterated FY18 guidance of €150m revenues and €36–40m EBITDA. Risks to forecasts include uncertainty regarding e-gaming regulation in core markets. Largely due to regulatory concerns, the stock is down 40% year to date, trading at 9.7x EV/EBITDA and 12.7x P/E for 2018e. This is in line with peers, but the company’s strong cash position and ability to pay special dividends is very attractive.