ZEAL Network’s Strong Q1 2025 Performance and Growth Potential Earns Buy Rating

Henrik Paganetty, an analyst from Jefferies, maintained the Buy rating on ZEAL Network (0QJQ – Research Report). The associated price target remains the same with €58.00.

Henrik Paganetty has given his Buy rating due to a combination of factors that highlight ZEAL Network’s strong performance and growth potential. The company reported a 7% increase in billings to €264.7 million in Q1 2025, despite facing challenges with jackpot development. This growth was largely driven by a 13% rise in the average number of active customers, attributed to enhanced marketing efforts.
Moreover, ZEAL Network’s sales in Q1 2025 reached €51.1 million, marking a 42% year-over-year increase and surpassing consensus expectations. The company also improved its take rate in the lottery business to 17.1%, up from 13.0% the previous year, thanks to a price increase and a strong product mix. Additionally, ZEAL’s EBITDA for Q1 2025 was €17.7 million, representing an 89% year-over-year growth and exceeding consensus estimates by 19.6%. The expansion of its online games portfolio and a significant increase in game revenues further support the positive outlook, alongside the company’s reaffirmed guidance for 2025.