ZEAL Network SE Expected to Show Strong Q1 Results, Says NuWays AG

NuWays AG issued a positive update on ZEAL Network SE, projecting a strong performance in the first quarter of 2024. According to the report released on April 24, 2024, ZEAL is likely to benefit significantly from high activity in the EuroJackpot, which reached new peaks during the quarter. This spike is expected to boost user activity, increasing monthly active users to 1.26 million, a 15% year-over-year increase.

Revenue from lottery billings is estimated to rise by 17% year-over-year to €234 million. Additionally, lottery sales are projected to reach €31 million, up 24% from the previous year. NuWays AG also anticipates a notable increase in games billings and sales, despite delayed regulatory approvals.

The research points to a potential EBITDA of €5.1 million, with a 15% margin. Despite significant marketing expenses, anticipated at €14 million due to the jackpot peaks, the attractive customer lifetime value is expected to offset these costs. NuWays AG reiterates its BUY recommendation for ZEAL with a target price of €51.00, underlining strong market positioning and effective customer acquisition strategies.