Bet-at-home Meets Market Expectations In Q1-2011


10th May, 2011 at 09:25:12

Share price is undervalued, say analysts, an online gambling subsidiary of the BetclicEverest group in France, has reported a positive Q1-2011, with sales and betting growing by 36% to Euro 427.2 million.

Key performance indicators released by the company included:

- Rise in betting and gambling sales by just under 36% to Euro 427.2 million

- Gross gaming revenue (GGR) up by 32.5% to Euro 18.3 milion

- Net gaming revenue (GGR - betting tax) rose by 18.9% to Euro 16.3 million

- Advertising spend of circa Euro 8 million (previous year: Euro 6.7 million)

- Rise in EBITDA by 47.1% to Euro 3.8 million

- Group income rose by 28% to Euro 2.5 million

The company reported a decline in cash on hand to Euro 26.6 million vs. Q4-2010, which it said was due to the issue of a loan of Euro 14 million to major shareholder Mangas. The loan is for one year at a 3% interest rate.

By the end of Q1/2011, 2.37 million users were registered (a rise of 113 000 vs.Q4/10)

It is worth noting that there is a clear difference between GGR (Euro 18.3 million) and net gaming revenue (GGR minus betting tax; Euro 16.3 million). This difference can be traced back to the taxation of betting and gambling sales in Austria since 1 January 2011, where casino products are taxed at 40% of GGR, and sports betting at 2% on the bet.

Analysts have treated the results with respect, noting that Bet-At-Home can be expected to expand its cash and cash equivalents (after repayment of the loan, excl. customer funds) to around Euro 42 million by the end of the year, and that the share price is undervalued.

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