ZEAL Network SE Shows Steady Growth Amid Weak Jackpot Scenario

ZEAL Network SE reported a 6% increase in Q1 sales, reaching €54.3m, despite a challenging jackpot environment. The growth was supported by a 5% rise in active lottery users and a slight improvement in gross margin to 17.8%. Revenue from games surged by 14% to €3.9m, with a user base expanding by 34% year-on-year, while the average revenue per user decreased by 15% compared to Q1 2025.

EBITDA amounted to €15.5m, reflecting a 13% year-on-year decline. This was attributed to increased marketing expenses and a rise in headcount. Despite these expenses, ZEAL gained 274,000 new customers, a significant increase from the previous year.

With ample cash reserves and a solid equity ratio, the company remains positioned for future growth. ZEAL plans to deploy additional marketing funds in favorable jackpot conditions. The company maintains a "BUY" recommendation with a target price of €80, based on its current performance and market prospects.