ZEAL Network SE Anticipates Solid Q3 Performance

ZEAL Network SE, analyzed by NuWays AG, anticipates a solid performance in the third quarter despite a normalized lottery environment. Following two robust quarters, demand for key lottery products has settled. The Lotto 6aus49 lacked peak jackpots, resulting in a 15% year-on-year decline in nationwide stakes, reaching €850 million in Q3.

EuroJackpot also normalized without major jackpots, maintaining a 9% year-on-year increase despite a 17% sequential quarterly decline. Overall, nationwide lottery stakes totaled €1.91 billion, down 3% year-on-year and 10% quarter-on-quarter.

Despite these challenges, ZEAL's billings are expected to grow 7% year-on-year, driven by a strong user intake and stable average billing per user. Measures to increase the billings margin should enhance lottery sales by 27% year-on-year in Q3. Marketing expenses are projected at €11 million, with an anticipated group EBITDA growth of 15% to €11 million in Q3.