ZEAL Network SE: A Strategic Shift Despite Jackpot Challenges

ZEAL Network SE faced hurdles this Q4 with limitations on peak jackpots, impacting sales forecasts. The Eurojackpot and Lotto 6/49 are unable to reach peak values, affecting user engagement. Consequently, Q4 sales projections have been slightly reduced to €53 million, yet still align with upper-end guidance at €215 million for the year.

Marketing strategies have shifted, reducing Q4 spending from €20 million to €15 million. This decision is expected to preserve a steady EBITDA margin of around 33.5%. Despite these challenges, ZEAL is anticipated to exceed EBITDA guidance, projecting a full-year EBITDA of €72 million, surpassing prior estimates.

Without the jackpot pressure, ZEAL is positioned to leverage its significant user base and strong activity levels to sustain profitability. The adjustment in marketing spend reflects strategic adaptability, with profitability remaining resilient even in jackpot-lacking periods, as seen in Q4 2024.