Zeal Network: Q1 review: Growth despite weak jackpots - NuWays AG Research

Q1 results were largely in line with expectations and show that ZEAL continues to grow structurally even in an unfavourable jackpot environment. Importantly, the quarter underlines management’s willingness to step up marketing and diversification spend against a soft jackpot backdrop to build a materially larger earnings base over the coming years.

Cash of € 115m and a 53.8% equity ratio leave ample room for further capital returns, with buybacks being a potential catalyst beyond the proposed dividend. At c. 22x PPA-adjusted 2026e earnings and 34% below the 5-year EV/EBITDA median, valuation looks undemanding for a largely macro uncorrelated business with mid-teens growth and 30%+ EBITDA margins near-term.

BUY, PT € 80, based on DCF.

Länk till analysen i sin helhet: https://www.nuways-ag.com/company/zeal-network-se/research/q1-review-growth-despite-weak-jackpots