ZEAL Network SE's Strong Performance and Growth Prospects

ZEAL Network SE has shown a robust performance in Q3 2026, with a notable increase in its earnings. The company beat its EBITDA guidance for the quarter, generating approximately €25 million before deal costs, driven by strong lottery and games segment sales. Organic sales grew by 9% year-on-year despite a decline in overall lottery stakes in Germany. The lottery segment sales increased by 8% year-on-year, and the games segment recorded a 20% rise.

Personnel costs increased at a slower pace compared to sales growth, demonstrating positive operating leverage. The EBITDA margin improved to 32.1%, and the company also managed to decrease its direct costs as a percentage of sales.

For Q4 2026, ZEAL is on track to exceed its EBITDA target, with expected growth of 37% year-on-year. The firm trades at a discount despite strong future growth prospects, with an EBITDA expected to reach €101 million in FY27. Management confidence is reflected in recent share purchases by the CEO and CFO.