Zeal Network up as unit gains permit for online slot games

ZEAL Network SE

06/04/2023 07:46

** Shares in German lottery products provider Zeal Network
 TIMAn.DE  rise 3.4% in early Frankfurt trade after unit Lotto24
 LO2k.H  received permission from German gambling authority GGL
to operate virtual slot games online
    ** "Positive news for Zeal but already expected," a local
trader comments on the Wednesday announcement
    ** Zeal sees revenue and EBITDA contributions on group level
in the low single-digit mln euro range during the ramp-up phase
in 2023, which has already been taken into account in its
current guidance
    ** It says revenue and EBITDA contribution in following
years will also depend on further regulatory developments
    ** Jefferies sees EBITDA contribution of around 4 mln euros
in 2024 and around 6 mln euros in 2025; this takes into account
effects on other products, as the broker expects these games to
partly offset lower margin lottery business
    ** The stock is seen at the top of Germany's small-cap index
 .SDAXI  in early trade

 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))