ZEAL Network SE Exceeds Expectations in Q1 Financial Results

ZEAL Network SE reported significant growth in its first-quarter financial results, surpassing expectations with strong sales and improved profitability. The report by NuWays AG highlights an impressive 22% year-over-year growth in lottery billings, reaching €246 million. Sales in this segment increased by 28% to €32 million, driven by multiple high-value jackpots and a solid billing margin.

The report further details growth in the games segment where billings rose to €31 million, significantly above forecasts, with sales increasing to €2.2 million. This growth is attributed to new additions to the game portfolio and a rise in monthly active users (MAUs), with a noted 22% quarter-over-quarter increase to 22,000.

Overall, ZEAL's total sales for Q1 climbed by 35% year-over-year to €36.1 million. The EBITDA for the same period was also noted at €9.4 million, slightly above the previous year, despite higher marketing expenses. This was due to the higher sales volume and reduced indirect costs.

With these results, ZEAL Network SE is confident about achieving the higher end of their annual performance guidance. NuWays AG has reiterated its buy recommendation for ZEAL, adjusting their target price upwards to €53.00.