Bet-at-home AG Faces VAT Liability in Switzerland

NuWays AG has updated its classification of bet-at-home AG, maintaining a recommendation of "HOLD" with a target price of EUR 5.50. This follows a negative ruling from the Swiss Federal Supreme Court regarding VAT liability for bet-at-home's subsidiary.

The Swiss Federal Tax Administration (ESTV) claims that the sports betting services provided by bet-at-home.com Internet Ltd. in Switzerland are subject to VAT. As a result, the subsidiary must register for VAT and settle tax claims for 2013-2017. The court's first-instance ruling dismissed bet-at-home's objections but indicated that the statute of limitations had expired for 2013.

Consequently, bet-at-home may have to pay EUR 1.3 million for 2014-2017 and EUR 2.7 million for 2018 to the first half of 2024. However, the company does not anticipate immediate cash outflows. Provisions and operating expenses for FY24 have been adjusted accordingly.

Apart from this, the UEFA EURO championship is expected to boost betting volumes, while marketing expenditures are likely to delay scale effects until Q3. Sales for FY24 are projected to be EUR 49.8 million, in line with the guidance range of EUR 45-53 million. EBITDA is forecasted at EUR 1.4 million, below the initial guidance of up to EUR 2.5 million.