ZEAL Network SE
ISIN: DE000ZEAL241
WKN: ZEAL24
10 May 2024 09:07AM

Original-Research: ZEAL Network SE (von NuWays AG): Kaufen

ZEAL Network SE · ISIN: DE000ZEAL241 · EQS - Analysts
Country: Germany · Primary market: Germany · EQS NID: 19651

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:
Recommendation: Kaufen
from: 10.05.2024
Target price: EUR 53.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Henry Wendisch

Staggering Q1 kicks off new growth phase; chg est. & PT

On Wednesday, ZEAL released staggering Q1 results above expectations with strong sales growth and better than expected profitability. Moreover, ZEAL substantially improved marketing efficiency which drove customer growth to record levels. In detail:

Strong Lottery business: Lottery billings came in better than expected at € 246m, +22% yoy (eNuW: €
234m) and were driven by 4x peak jackpots. Lottery sales grew by 28% yoy to € 32m (eNuW: € 31m) thanks to the strong billings coupled with a solid billings margin of 13.0%, up 0.9pp yoy (eNuW: 13.2%).

Upbeat Games adoption: Games contributed better than expected with billings of € 31m (eNuW: €
25m) and sales of € 2.2m (eNuW: € 1.9m) driven by further additions to the Games portfolio as well as user adoption with MAUs growing by 22% qoq to 22k (eNuW: 20k). Consequently, the ARPU stood at € 33.6 (vs. € 8.0 at Lottery) highlighting the attractive user economics at Games.

Dynamic top-line: Q1 sales rose by 35% yoy to € 36.1m (eNuW: € 34.8m). Based on an average jackpot development, we expect a slight qoq sales decline in Q2e (eNuW: € 34m; due to less user activity) before the planned expansion in the billings margin to above 15% (currently: 13%) should unfold its posititve effect on sales from Q3e onwards (eNuW: € 38m in Q3e / € 42m in Q4e).

EBITDA much better than expected: Q1 EBITDA came in at € 9.4m, +1% yoy (eNuW: € 5.1m) despite heavy marketing expenses of € 13.4m (eNuW: € 14m), but driven by higher than expected sales and lower than expected indirect costs of € 3.6m (-20% qoq; eNuW: € 5.8m), as the majority of ramp-up costs of the new social lottery will likely be incurred towards the end of the year and not in Q1 and Q2.

Improved marketing efficiency: Costs per Lead decreased by 10% yoy to € 33 (eNuW: € 40), showing that customer acquisiton has become more efficient. In sum, ZEAL accounted for 320k new registrations (+124% yoy; eNuW: 350k) and grew their MAU in Lottery by 21% to 1.33m (eNuW: 1.26m).

Guidance well in reach: Management confirmed the guidance (see bottom right), but based on our revised estimates, we expect a reach at the upper-end of the guidance, due to the improved user base.

Therefore, we reiterate our BUY recommendation as well as ZEAL's position in the NuWays' AlphaList
with an increased PT of € 53.00 (old: € 51.00), based on DCF.

You can download the research here:
http://www.more-ir.de/d/29651.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 ++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++

-------------------transmitted by EQS Group AG.-------------------

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
Quelle: boersengefluester.de and Company information
Explanation

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
Dividends
Dividend '2022
in €
Dividend '2023
in €
Dividend '2024e
in €
Div.-Yield '2024e
in %
3,60 1,10 1,10 2,29%
Financial calendar
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
Performance
Distance 60-days-line Distance 200-days-line Performance YtD Performance 52 weeks IPO
Last Price (EoD)
-0,62%
48,00 €
ATH 59,47 €
+16,58% +30,95% +44,14% +54,84% +134,15%

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