EANS-Research: Lang & Schwarz Broker GmbH / bet-at-home.com: Strong annual financial statements, estimates increased - new price target EUR 58 (with document)

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Analysts' Comments/Research-Update

Düsseldorf (euro adhoc) - Topic: Fiscal year 2010 figures from 28
February 2011

Yesterday bet-at-home.com reported its figures for the lapsed 2010
fiscal year. After the strong Q3, the company was again able to tap
into the positive development in the final quarter. The reported
figures well exceeded our expectations, which had already surpassed
the company´s guidance (net income: EUR 4.5 m). The significant
figures are as follows:

• Betting and gaming sales rose by around 59% over the previous year to
EUR 1.476 bn
• Gross gaming revenue (GGR) increased by roughly 54% to EUR 66.15 m
(2009: EUR 42.92 m).
• Net income amounted to EUR 10.47 m (2009: EUR 2.65 m).
• Liquid assets (incl. customer funds of EUR 8 m) were increased
significantly (+ EUR 15.5 m to EUR 36.23 m or EUR 10.35 per share).
• The number of registered members climbed to 2.26 m (+ 116 thousand in
Q4/2010).

The major forces driving the outstanding top-line development in Q4 (GGR of EUR
18m) were:

• The strong gain in new customers in the course of the 2010 World Cup and
the reactivation of existing customers, who had a positive impact on the
gambling activities in Q4.
• A better market environment overall, due to the legal situation as well
as the gradual opening up of sports betting / gambling markets.

The high degree of scalability of the business model combined with additional

efficiency improvements in marketing expenditures (drop in the ratio
of market expenditures to 56% after 73% in 2009) has had a mark on
the disproportionately high profit trend. Net income of nearly EUR
5.9 m was generated in Q4/2010. The result overall is net income of
roughly EUR 10.5 m.

Positive guidance for 2011

The Board of Directors offered its guidance for the current 2011
fiscal year in the scope of the reporting. The dynamic growth is
expected to continue and, based on the more intense marketing
activities, lead to a rise in GGR by at least 30% (implies GGR of >=
EUR 86 m).

Forecasts lifted substantially

bet-at-home.com has presented strong figures by taking advantage of
the improved market environment (gradual opening up of gambling
markets for private-sector providers, executing advertising efforts
on the most important market of Germany made easier once again) as
well as the "World Cup effect". Both thesales (GGR) and earnings
figures beat our expectations. With the support of the existing base
of members and the improved advertising environment (attractive
conditions for online advertising, fewer restrictions by opening up
markets), bet-at-home.com should continue to grow in the coming
years. We have lifted our estimates significantly (see pdf).

Valuation

In spite of the positive trend for the share price, the updated
estimates show further upside potential. The new price target,
derived using a DCF model, is EUR 58 (previously: EUR 31.65). We are
reaffirming our Buy recommendation for the bet-at-home.com AG share.

Lang & Schwarz Broker GmbH
Goetheplatz. 4
60311 Frankfurt am Main

Our recommendations are based on public information. We deem this
information reliable but can guarantee neither this nor the
completeness or accuracy thereof. We reserve the right to change our
opinions expressed here at any time and without prior notice. The
opinions and investment recommendations in our publications may not
be suitable for some investors depending on the investment objective
or with regard to investment risk, timeframe and/or overall position.
The share price data and charts are derived from Bloomberg, Reuters
and SystemSoft. The contents herein may only be reproduced,
duplicated or electronically distributed with written consent by Lang
& Schwarz Broker GmbH.

+++ This release does not contain any investment advice. Please read
our disclaimer on our website http://www.ls-broker.de +++

Attachments with Announcement:
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http://resources.euroadhoc.com/us/czdFhYL7

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:

Lang & Schwarz Broker GmbH
Email: analyse@ls-broker.de

Branche: Banking
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