Original-Research: ZEAL Network SE - from NuWays AG 01.10.2024 / 09:01 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
01.10.2024 - 09:02:31Original-Research: ZEAL Network SE (von NuWays AG): Kaufen
Original-Research: ZEAL Network SE - from NuWays AG 01.10.2024 / 09:01 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of 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. --------------------------------------------------------------------------- Classification of NuWays AG to ZEAL Network SE Company Name: ZEAL Network SE ISIN: DE000ZEAL241 Reason for the research: Update Recommendation: Kaufen from: 01.10.2024 Target price: EUR 54.00 Target price on sight of: 12 months Last rating change: Analyst: Henry Wendisch Solid Q3 ahead despite a normalized lottery environment Following two very strong lottery quarters, overall demand for ZEAL's most important products from lottery brokerage have normalized in Q3, as no peak jackpots have been reached. For ZEAL, we nevertheless expect solid Q3 results. In detail: Lotto 6aus49 continues its negative streak: Q3 finished off as the fourth quarter in a row without a peak jackpot. Furthermore, the largest jackpot came in at only EUR 30m (out of max. EUR 50m), showing that the jackpot situation was well below maximum. Consequently, demand for this product continued to be weak with nationwide stakes of only EUR 850m in Q3, implying a 15% yoy decline and standing 8% below its LTM average. EuroJackpot normalized: Without a peak EuroJackpot and only one run-up to EUR 96m (out of max EUR 120m), the strong demand from Q1 and Q2 could not be sustained into Q3. Hence, nationwide stakes for the EuroJackpot came in at EUR 1.06bn, which is nevertheless up 9% yoy, but sequentially down 17% qoq and thus only 2% below its LTM average. Combined, nationwide lottery stakes stood at EUR 1.91bn in the third quarter, which is down 3% yoy, down 10% qoq and 5% below its LTM average, implying a constant user activity yoy, but a lower one qoq. - see p.2 for details Nevertheless solid Q3 results ahead: At ZEAL, billings should grow 7% yoy (eNuW), driven by (1) strong H1 user intake offsetting lower Q3 user activity, and (2) stable average billing per user of EUR 61 (eNuW). More importantly, measures to raise the billings margin to 'above 15%' (eNuW: 15% vs. 13% LTM average) should boost lottery sales by 27% yoy in Q3 (eNuW; c. 90% of group sales). With marketing expenses expected to be at EUR 11m, group EBITDA is projected up 15% at EUR 11m in Q3 (eNuW). Moreover, first tangible results of the newly launched lottery product 'Traumhausverlosung' are expected with the Q3 release, giving more visibility into the product's potential. Against this backdrop, we reiterate our BUY recommendation with unchanged PT of EUR 54.00, as ZEAL continues the current chapter of elevated growth and market share gains. You can download the research here: http://www.more-ir.de/d/30967.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. ++++++++++ --------------------------------------------------------------------------- The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com --------------------------------------------------------------------------- 1999063 01.10.2024 CET/CEST