EANS-News: Lang & Schwarz Broker GmbH / bet-at-home.com: News Comment Q1/2011 results (with document)

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Analysts' Comments/bet-at-home.com: News Comment Q1/2011 results

Düsseldorf (euro adhoc) - Q1 in line with expectations - share
significantly undervalued

Topic: Q1 figures from 9 May 2011

Yesterday bet-at-home.com released its figures for the first quarter
of the current 2011 fiscal year. These were in line with our
expectations and support our full-year forecasts.

The most important key data are as follows:

- Rise in betting and gambling sales by just under 36% to EUR 427.2 m
- Gross gaming revenue (GGR) increase by 32.5% to EUR 18.3 m - Net
gaming revenue (GGR - betting tax) +18.9% to EUR 16.3 m - Advertising
expenditures of ca. EUR 8 m (previous year: EUR 6.7 m) - Rise in
EBITDA by 47.1% to EUR 3.8 m - Group income rose slightly
less-than-proportionately by 28% to EUR 2.5 m (based on tax
provisions) - Cash and cash equivalents: EUR 26.6 m (decline versus
Q4/2010 due to the issue of a loan to major shareholder Mangas for
EUR 14 m) - As at the end of Q1/2011, 2.37 million users were
registered (+113 thousand vs.Q4/10)

It is worth noting that there is a clear difference between GGR (EUR
18.3 m) and net gaming revenue (GGR minus betting tax; EUR 16.3 m).
This difference can be traced back to the taxation of betting and
gambling sales in Austria since 1 January 2011, which is set up as
follows:

- Casino products: 40% of GGR
- Sports betting: 2% on the bet

This taxation weighs on the margin, but at the same time the
regulated environment for legally operating bookmakers such as
bet-at-home.com offers an opportunity to accelerate growth using a
targeted marketing mix. Moreover, mature gambling markets such as the
UK are showing that the tax rates tend to decline over time (because
a larger portion of the gambling activities then take place in the
regulated environment). (Table: Per Share figures in EUR).

High liquidity reserves

As at the end of Q1/2011, the company had cash and cash equivalents
(incl. customer funds) of EUR 26.6 m. The decline versus Q4/2010
(cash and cash equivalents: EUR 36.2 m) is attributable to the issue
of a loan to the main shareholder Mangas. bet-at-home.com granted it
this loan for EUR 14 m with a term of twelve months and an interest
rate of 3%. This rate far exceeds the level otherwise generated by
the company (ca. 1% on cash and cash equivalents).

Share rated a clear Buy

bet-at-home.com boosted its sales and earnings considerably once
again. The company is expected to expand its cash and cash
equivalents (after repayment of the loan, excl. customer funds) to
ca. EUR 42 m by the end of the year. This amounts to liquidity of
roughly EUR 12 per share. The stock is clearly undervalued. We are
reaffirming our Buy recommendation with an unchanged price target of
EUR 58.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/UA2H1yKR

end of announcement euro adhoc
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ots Originaltext: Lang & Schwarz Broker GmbH
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Roberto Spinozzi
roberto.spinozzi@ls-d.de

Branche: Banking
ISIN:
WKN: -