^Original-Research: bet-at-home AG - from NuWays AGClassification of NuWays AG to bet-at-home AGCompany Name: bet-at-home AGISIN: DE000A0DNAY5Reason for the research: UpdateRecommendation: HOLDfrom: 17.07.2024Target price: EUR 5.50Last rating change: Analyst: Frederik JarchowNegative ruling in dispute over Swiss VAT liability; chg Topic: Swiss Federal Supreme Court does not rule in favour of thebet-at-home subsidiary bet-at-home Internet in the first instance in thedispute over the VAT liability of sports betting. The Swiss Federal Tax Administration ('ESTV') assumes that the offer ofsports betting in Switzerland by bet-at-homeŽs subsidiary, bet-at-home.comInternet Ltd., Malta, is subject to VAT. Consequently, the company shouldbe entered in the register of companies liable for VAT. Further, the ESTVhas assessed tax claims for the payment of VAT for the tax periods 2013 to2017. bet-at-home takes a contrary view on the whole matter, first filedobjection with the ESTV before filing a complaint with the court. The ruling in first instance (not legally binding) rejected the complaintof bet-at-home, but emphasized that the statue of limitations has alreadyexpired for 2013. bet-at-home is now examining its legal options as well asthe potential impact on the given guidance for FY24. In case bet-at-homewould accept the ruling in first instance, it would have to pay EUR 1.3m forthe tax years 2014-17 and another EUR 2.7m for 2018 to H1Ž24 (excl. interestcosts). Nevertheless, the company does not expect any immediatecashoutflows. In order to reflect the ruling, we increased provisions andoperating expenses in FY24 and and reduced reported EBITDA estimatesrespectively. As we consider the potential costs as "special items" (i.e.non-operating costs in connection with claims and the liquidation of theEntertainment), EBITDA before special items should remain unaffected afterall (eNuW). Apart from that, the UEFA EURO championship should have fueled bettingvolumes topline in Q2/Q3 (assuming stable betting margins). Due to highexpected marketing spending also throughout Q2, scale effects - alsocarried by imposed efficiency measures, such as outsourcing andstreamlining of processes - should not materialize before Q3. Taking allinto account, FY24 sales should still end up at EUR 49.8m in line with theguidance range of EUR 45-53m, (reported) EBITDA is now seen at EUR 1.4m, belowthe guidance of -1m to EUR 2.5m in EBITDA (before special items). While the risks associated with the liquidation process of theEntertainment Ldt. and provisions for current and potential new customerclaims in Austria seem to be largely under control, the uncertainty inGermany remains after the indicative decision of The Federal Court ofJustice. HOLD with an unchanged PT to EUR 5.50 based on FCFYŽ25e.You can download the research here:http://www.more-ir.de/d/30223.pdfFor additional information visit our websitewww.nuways-ag.com/research.Contact for questionsNuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: research@nuways-ag.comLinkedIn: https://www.linkedin.com/company/nuwaysagAdresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research.The result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.°