ZEAL Network SE Posts Strong Q2 Performance and Launches New Product

ZEAL Network SE has received a "BUY" recommendation from NuWays AG, with a target price of EUR 54.00. This follows a robust Q2 performance and a promising new product launch.

Lottery billings reached €261m, a 24% year-on-year increase, supported by favorable jackpot environments. Sales from lottery grew by 37% year-on-year to €36m, driven by an improved billings margin of 13.8%.

Although the roll-out of ZEAL's Games portfolio faced regulatory delays, sales improved sequentially with an ARPU of €40.5 and total sales of €2.3m. Q2 sales rose 45% year-on-year to €40.7m, showing a strong top-line growth.

EBITDA also showed significant growth, reaching €10.7m in Q2, driven by reduced marketing expenses but slightly offset by increased personnel and indirect costs. Marketing efficiency remained high, with cost per lead decreasing by 34% year-on-year.

The new raffle-type lottery, "Traumhausverlosung," aims to enhance billings margins and diversify ZEAL's offerings. This complements the company's strategy to grow without acquiring market shares, reinforcing its innovative stance in Germany's lottery market.