AlsterResearch Update: About You - H1 21/22 results with no surprises

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What’s it all about?

About You’s H1 results held no surprises as they were well within the previously communicated range from six weeks ago. Accelerated growth in the DACH region was accompanied by hypergrowth in TME segment (Tech, Media, Enabling). Operating profit showed a slight margin improvement, but the overall bottom-line was negative, reflecting the stage of the business expansion. However, the TME stood out and demonstrated its margin potential (TME: adj. EBITDA-margin improved from -8.1% to 15.4%). We continue to believe that the company’s B2B business, including its highly scalable SaaS E-commerce solution, has the potential to become a strong margin contributor in the long-term. In the short-term AY faces ramp-up costs from its expansion. We reiterate our BUY rating with unchanged PT of EUR 26.50, based on our DCF valuation model.