ZEAL Network SE Increases FY'25 Guidance Amid Strong Demand

ZEAL Network SE recently announced an increase in its FY'25 sales guidance. The updated forecast estimates sales between €205-215 million, an increase from the previous €195-205 million range. This adjustment reflects robust demand for the "Traumhausverlosung" lottery and a higher gross margin.

The recent Dream House raffle at St. Peter-Ording significantly contributed to this upward revision. The first three raffles generated a total of €26 million in billings. After various deductions, this resulted in a sales effect of €12.6 million. The fourth raffle is expected to provide even higher returns.

Moreover, Q3 showed increased lottery activity with the Eurojackpot reaching €120 million. This activity improvement is driving a favorable product mix and supporting the sales forecast. Consequently, the target price for ZEAL's stock has been raised to €65.00, maintaining the BUY recommendation.