ZEAL Network SE's Momentum Drives Guidance Hike

ZEAL Network SE announced a significant increase in its full-year 2024 sales and EBITDA guidance. Sales are now projected between €158-168 million, a midpoint increase of 12%, while EBITDA expectations have risen to €42-46 million, marking a 10% increase. This adjustment reflects strong third-quarter results, with sales reaching €44.2 million, a 42% year-on-year increase. The success is attributed to a strong user intake and the launch of the 'Dream House Raffle' product, which contributed to a solid EBITDA performance of €15.2 million, exceeding expectations.

The company's growth narrative is supported by an increased billings margin of over 15% in its lottery brokerage business. This momentum aligns with the broader trend observed in the first half of the year, characterized by a 40% sales growth and a 46% rise in EBITDA. As the billings margin continues to impact the upcoming year, ZEAL anticipates a consistent growth trajectory. Consequently, NuWays AG reiterates a 'Buy' recommendation, revising the target price to €57.00.