Redeye: Enlabs - Ready for EPS take-off

Enlabs´s sales came in above our estimates. The sales came in at EUR 9.4m (estimated EUR 9.3m). However, one-off costs lowered EBIT and the profit margins in the second quarter. The group´s underlying momentum is strong with a Y/Y growth of 35% and a Q/Q growth of 4%. The main driver was the casino vertical with a Y/Y growth of 57% and a Q/Q growth of 6%. We expect the strong Q/Q growth to increase further during the peak-season, and there are plenty of additional growth drivers beyond 2019. The scalability of Enlabs business together with the rapid growth, should increase the profit margins and fuel a rapid EPS growth. We have updated our estimates and increased the fair value to SEK 31 (29) per share in Base case.

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