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Original-Research: SMARTBROKER Holding AG - from NuWays AG
Classification of NuWays AG to SMARTBROKER Holding AG
Company Name: SMARTBROKER Holding AG
ISIN: DE000A2GS609
Reason for the research: Update
Recommendation: BUY
from: 23.02.2024
Target price: 9.50
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Frederik Jarchow
Mixed FY23 prelims // transition year ahead; chg
Topic: Yesterday, Smartbroker Holding reported FY23 prelims that came in as
a mixed bag as well as a conservative outlook into FY24 that is underlined
by soft monthly trading stats. In detail:
FY23 sales of EUR 46.3m (-12% yoy) are 8% below our estimates of EUR 50.4m,
driven by both, weaker Media sales of only EUR 28.1m (-18% yoy vs eNuW: EUR
29.4m) and weaker Transaction sales of only EUR 18.2m (-3% yoy vs eNuW: EUR
21.0m). While Media suffered from the difficult market environment with
lower volatility, weakness in Transactions resulted mainly from the
negative side effects of the migration to S+ visible in declined no of
customers and trades.
EBITDA came in at EUR 0.5m (-94% yoy), in line with estimates (eNuW: EUR 0.3m).
Lower than expected marketing spending (-65% yoy to EUR 1.6m vs eNuW: EUR 3.5m)
and other operating expenses (-2% yoy to EUR 7.8m vs eNuW: EUR 8.2m),
compensated for the softer topline. As D&A stand at EUR 6.4m (vs eNuW: EUR
3.4m), EBIT came in at EUR -5.8m (vs FY22: EUR -8.4m), significantly below our
estimates (eNuW: EUR -3.1m).
In a nutshell, the preliminary figures are the reflection of a difficult
year, burdened by the weak stock market performance and the migration to
S+. Still, prelims were in line with the reduced guidance from September
2023 (EUR 46-51m sales; EUR -1 to 1m EBITDA).
Looking into 2024, we rather see a transition year that should be
characterized by the launch of several missing features at S+ (such as RFQ
orders at all trading venues or bond trading) and the UI/UX overhaul of
several portals in the Media segment. Positively, the product improvements
paired with increasing marketing spending from H2 onwards, should fuel
topline again resulting in EUR 50.0m sales and EUR 1.6m EBITDA (eNuW), in line
with management guidance of EUR 50-55m sales and EUR -1m to EUR 3m EBITDA.
Overall, the S+ remains the growth driver of the Group, as the unique
combination of the service range of an established full-service broker at a
neobroker pricing should drive customer inflows and transactions, fueled by
reach of the proprietary media portals.
As the investment case remains intact, we reiterate BUY with a reduced PT
of EUR 9.50, based on DCF.
You can download the research here:
http://www.more-ir.de/d/28967.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Die Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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-------------------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 advice
or an invitation to conclude certain stock exchange transactions.
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