ZEAL Network SE: Strong Quarter Ahead with Increased Revenue Expectations

ZEAL Network SE, identified by ISIN: DE000ZEAL241, has seen a revised recommendation to 'BUY' from NuWays AG, supported by an increased target price of EUR 62.00. This follows projections for a robust first quarter in 2025, building on previous successes. Despite a normalization in the lottery environment and a minor decline in lottery spending, sales are anticipated to rise to EUR 50.5 million, marking a 40% increase year-over-year.

The growth is attributed to several factors: a 14% increase in the user base, improved billings margin due to a prior price hike, and new product offerings like "Traumhausverlosung" which contributed to additional sales. Notably, ZEAL's operating leverage is expected to boost Q1 EBITDA by 73%, highlighting effective cost management and enhanced brand marketing strategies.

ZEAL's cash-rich position has allowed for substantial shareholder returns, with a proposal for a EUR 2.40 dividend per share reflecting its strong financial health. With these favorable conditions, a potential guidance increase is anticipated soon.