|
Original-Research: ZEAL Network SE - from NuWays AG
Classification of NuWays AG to ZEAL Network SE
Guidance hike confirms strong momentum; chg. est & PT Yesterday after the bell, ZEAL released an ad-hoc with a guidance hike and better than expected Q3 prelims, fully confirming our positive view on the stock and its elevated momentum in top- and bottom-line. FY'24e guidance raised: Sales are now expected between € 158-168m (old: € 140-150m), implying an increase by 12% at mid-point, whereas EBITDA is seen between € 42-46m (old: € 38-42m), implying a 10% increase at mid-point. Q3 prelims much better than expected: Next to the increased guidance, Q3 prelims were released and came in much better than expected. Sales arrived at € 44.2m (+42% yoy) driven by the strong user intake from H1 coupled with a billings margin expansion at the start of Q3. While detailed figures are released with final Q3 results on November 6th, the better than expected sales figure could stem from a successful launch of the new product 'Traumhausverlosung' (eng.: Dream House Raffle), in our view. Consequently, EBITDA also came in better than expected at € 15.2m (+61% yoy; eNuW: € 11m) on the back of a better fixed cost coverage. Stellar growth continues: Following a superb first half of the year, (sales: + 40% yoy; EBITDA: +46% yoy) carried by a strong jackpot environment and user intake, ZEAL has continued its current growth story in the third quarter despite a muted jackpot environment thanks to the increased billings margin of above 15% in the lottery brokerage business (c. 90% of sales). Consequently, next year should also remain a year of at least 15% sales growth as the increased billings margin in the lottery brokerage business comes in with a full-year effect. FY'24e guidance raised: Sales are now expected between € 158-168m (old: € 140-150m), implying an increase by 12% at mid-point, whereas EBITDA is seen between € 42-46m (old: € 38-42m), implying a 10% increase at mid-point. After incorporating the Q3 prelims into our model, but leaving our Q4'24e estimates unchanged, our new estimates (see below) are now at mid-point of the new guidance. All in all, a strong release fully confirming our positive view on the stock. The strong sales momentum should inevitably lead to an acceleration of profitability thanks to ZEAL's operating leverage. Therefore, we reiterate our BUY recommendation, increase our PT to € 57.00 (old € 54.00) and confirm the stock as one of NuWays' Alpha Picks for 2024. You can download the research here: http://www.more-ir.de/d/31113.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. |
||||||||||||||||||||
2015883 25.10.2024 CET/CEST
P R O D U C T S U G G E S T I O N S
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.
