Original-Research: ZEAL Network SE (von NuWays AG): Kaufen
Original-Research: ZEAL Network SE - from NuWays AG
Classification of NuWays AG to ZEAL Network SE
Company Name: ZEAL Network SE
ISIN: DE000ZEAL241
Reason for the research: Update
Recommendation: Kaufen
from: 10.04.2024
Target price: EUR 51.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch
Games business – a second EBITDA accelerator?
Following recent additions to the Games portfolio, we take this opportunity for another deep dive into the new Games business, highlighting the favourable business metrics and showing its enormous potential for ZEAL, once scaled. Here’s our take:
User metrics exceed those of lottery by far: thanks to the repetitive character of Games, the customer journey gives ZEAL much more monetization opportunities, as users can play 24/7 and for mutliple times a day vs. 1-3 days Lottery players need to wait for the next jackpot draw. This is reflected at much higher ARPU (average revenues per user) of currently € 25.82 at Games vs. only € 7.68 at Lottery.
Change in Games KPIs ahead: While the business is still in roll-out, ZEAL is about to add higher billings margin Games to the now 59 games counting portfolio. Hence, we expect changing KPIs as billings margins directly influence the pay-in to billings ratio, the pay-in margin and ultimately ARPU.
Finding the sweet spot: maximizing the ARPU at Games should be one of ZEAL's main target. As it controls the average billings margin (i.e., by changing the Games product mix), it can experiment to some extent, as higher billings margins reduce RTP and thus user activity. By finding the optimal billings margin, the pay-in margin and thus ARPU can be maximized.
Conservative estimates already show promising bottom line effects: According to our current estimates, the new business should account for 12% of group EBITDA in '24 (€ 5m) and for 17% of group EBITDA by FY'26e (€ 11m), based on conservative user growth assumptions (40k by FY'26 vs. 17k in FY'23) and only slight EBITDA margin improvements (50% in FY'26e vs. 42% in FY'23).
Huge potential, once scaled: To asses the impact of the Games business once meaningful user numbers are reached, our sensitiviy analysis shows the enormous potential stemming from Games: Asuming 200k MAUs, an ARPU of € 30 and a 50% EBITDA margin, the annually recurring EBITDA contribution from Games alone could amount to € 36m (vs. € 33m on group level in '23).
In sum, the Games business has the potential to become a significant second pillar of growth and profitability for ZEAL. Hence, we confirm ZEAL's position in the NuWays' AlphaList and reiterate our BUY recommendation with an unchangend PT of € 51.00, based on DCF.
You can download the research here:
http://www.more-ir.de/d/29371.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.
The most important financial data at a glance | ||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
Sales1 | 154,75 | 113,48 | 87,02 | 83,33 | 105,20 | 116,05 | 182,00 | |
EBITDA1,2 | 38,31 | 17,91 | 17,33 | 27,73 | 31,66 | 32,91 | 58,00 | |
EBITDA-Margin3 | 24,76 | 15,78 | 19,92 | 33,28 | 30,10 | 28,36 | 31,87 | |
EBIT1,4 | 38,31 | 9,07 | 5,38 | 19,05 | 22,93 | 23,65 | 48,00 | |
EBIT-Margin5 | 24,76 | 7,99 | 6,18 | 22,86 | 21,80 | 20,38 | 26,37 | |
Net Profit (Loss)1 | 26,66 | 1,72 | 7,89 | 11,40 | 16,57 | 13,72 | 31,00 | |
Net-Margin6 | 17,23 | 1,52 | 9,07 | 13,68 | 15,75 | 11,82 | 17,03 | |
Cashflow1,7 | 38,20 | 5,30 | 5,37 | 26,16 | 28,49 | 25,57 | 0,00 | |
Earnings per share8 | 3,18 | 0,09 | 0,37 | 0,48 | 0,72 | 0,59 | 1,43 | |
Dividend per share8 | 1,00 | 0,80 | 0,90 | 2,10 | 3,60 | 1,10 | 1,10 |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
Auditor: Ernst & Young
All relevant valuation ratios, dates and other investor information on your share at a glance. Good to know: All data comes from boersengefluester.de and is updated daily. This means you are always up to date. You can get brief explanations of the key figures by moving the cursor or mouse over the relevant field.
INVESTOR-INFORMATION | ||||||
©boersengefluester.de | ||||||
ZEAL Network | ||||||
WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
ZEAL24 | DE000ZEAL241 | SE | 1.039,79 Mio € | 12.10.2005 | Halten | 9F5FHXJG+9R |
PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
41,38 | 20,32 | 2,04 | 50,21 | 4,42 | 40,67 | 8,96 |
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
3,60 | 1,10 | 1,10 | 2,29% |
Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
21.05.2025 | 07.05.2025 | 06.08.2025 | 06.11.2024 | 26.03.2025 |
Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
+16,58% | +30,95% | +44,14% | +54,84% | +134,15% |
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