bet at home com AG (DE:ARTG) is a long-established sports betting brand with positive growth drivers: an increasing proportion of betting is being done online, including on mobile. An aggressive H116 marketing campaign is forecast to deliver strong profits growth in 2017. Cash balances are expected to swell with the repayment of a €56m shareholder loan during 2017, part of which will be distributed to bet-at-home shareholders by way of dividends in May 2017. The prospective yield (8.9%) adds to the shares’ attractions.
Long-established European sports betting brand
bet-at-home’s main markets are Austria (24% of gross win), W. Europe including Germany (47%) and E. Europe (28%). The mix of gross gaming revenue (GGR) between sports and eGaming (casino, games, poker) is roughly 50/50. About 30% of revenues now come from mobile, below the peer average but growing fast. Some of its markets are fully licensed (eg the UK) but formal licensing has not yet been introduced in many of its main markets, where it pays taxes and VAT as applicable and operates under its EU licence. There is some risk that earnings may be affected by new taxes in regulating markets such as the Netherlands and Poland, but this is in line with peers such as GVC, Betsson and Unibet.
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