ZEAL Network SE Shows Strong Growth Amid Lottery Fever

ZEAL Network SE has seen a remarkable increase in its financial performance, according to a recent research update from NuWays AG. Sales for FY'24 are projected to be between €175-185 million, with an EBITDA forecast of €55-59 million. This represents a significant rise from the previous estimates of €170 million and €45 million, respectively. Factors driving this success include a 100% growth in Q4 sales and a 130% increase in EBITDA year-over-year.

The rise in performance is partly attributed to a historic peak of consecutive lottery jackpots, which boosted Germany into a frenzy of lottery participation. New customer acquisition also surged during this period, with 1.4 million new registrations for FY'24, up 134% from the previous year. The expansion of the customer base promises increased revenue, with an average conversion of one in four registrations to monthly active users.

Despite robust growth, ZEAL's marketing costs remain efficient, with a marketing ROI of 34% expected for FY'24, up from 20% in FY'23. This underscores improved marketing strategies. Consequently, NuWays AG maintains its "Buy" recommendation for ZEAL, with a target price of €60.00.