Bet-At-Home Proposes Dividend despite Slump in 2020 Business

Sports betting and gaming group bet-at-home.com AG released Monday its full calendar 2020 financial report posting double-digit decrease in gross betting and gaming revenue.

2020 Revenues Decrease

The group revealed gross betting and gaming revenue in 2020 amounted to €126.9 million, 11.4% down compared to the €143.3 million the company generated in 2019. The slump in business was due to the negative impact from coronavirus-related cancellations of sporting leagues and events, including the postponement of the European Football Championship to 2021, the company noted.

The financial 2020 resulted in earnings before interest, tax, depreciation, and amortization (EBITDA) of €30.9 million, which compared to the 2019 reading of €35.2 million, represents a decrease of 12.2%. The 2020 EBITDA, however, significantly exceeded the initial company guidance of between €23 million and €127 million.

The gradual return of European soccer leagues and other international competitions to action in the summer helped generate extra revenue during the historically weak summer months and offset some of the negative impact since mid-March, but was not enough to fully compensate for the lost revenue.

Marketing investment for the calendar 2020 amounted to €30.5 million, 23.3% lower than the €39.8 million for the prior year, mainly due to the postponement of the biggest competition in Europe, the UEFA Football Championship. Cancellations of other sporting events also affected planned advertising spend and contributed to the lower marketing investment figure.

With regards to the online gaming segment, the company noted it was not affected by coronavirus-related developments, yet faced some headwinds from restrictions in its home market Germany, where legal steps for liberalization impacted negatively online casino revenues.

Dividend Proposal and Future Outlook

Despite the negative developments and the material impact on its revenue, Management Board and Supervisory Board at bet-at-home.com AG will propose at the upcoming Annual General Meeting (AGM) on May 18, 2021, a dividend of €2.5 per share, a total dividend payment to shareholders of €17.5 million. The dividend proposal corresponds to a 7.85% yield on the company’s valuation at the year-end share price.

The betting and gaming group expects to generate gross betting and gaming revenue between €106 million and €118 million in the financial 2021, lower than in 2020 largely due to the legal requirements related to sports betting licensing in Germany.

In addition, implemented restrictions on online casino products by German authorities since October 2020 will continue to negatively impact revenues in 2021, leading to EBITDA between €18 million and €22 million, Management Board at bet-at-home estimates.