Report
Martin Arnell
EUR 91.47 For Business Accounts Only

Betsson (Buy, TP: SEK90.00) - Strength behind distant fears

With normally nearly 30% revenue exposure to sports (cancelled events in Q2), we were impressed by 12% organic sales growth YOY in Q2. We expect focus to return to fundamentals and the organic growth acceleration to trigger H2e EBIT up nearly 50% YOY. To reflect the revenue beat, positive current trading, and cost efficiency, we have raised our 2020–2022e EPS forecasts by c10%. We have lifted our target price to SEK90 (80) and reiterate our BUY.
Underlying
Betsson AB Class B

Betsson AB is a holding company. Co.'s core business consists of investing and administering shareholdings in companies which - through partners or by themselves - offer games to end users via the internet. Co. owns Betsson Malta which operates games through partnerships and the own websites www.betsson.com, www.casinoeuro.com and www.cherrycasino.com. Betsson Malta offers Poker, Casino, Sports betting, Scratch Cards, Bingo and Games. Customers primarily originate from the Scandinavian countries and other areas within Europe.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Martin Arnell

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