Does ZEAL Network (ETR:TIMA) Deserve A Spot On Your Watchlist?

In the ever-evolving landscape of investment opportunities, some companies stand out for their potential to generate consistent, stable income. ZEAL Network (ETR:TIMA), a German online lottery broker, has demonstrated remarkable growth and resilience, making it an attractive candidate for income-focused portfolios. This article explores the reasons why ZEAL Network deserves a spot on your watchlist.


**Growth Driven by Customer Acquisition and Diversification**

In the first half of 2024, ZEAL Network reported a 40% year-on-year revenue increase, driven by a 70% rise in registered customers (IGaming Business, 2024). The company's lottery segment contributed significantly, with brokerage revenue jumping 33% to €68.0m. Moreover, the games segment, launched in June 2023, generated €4.5m in revenue, demonstrating its potential to diversify revenue streams.


**Marketing Strategy and Customer Loyalty**

ZEAL Network's marketing strategy has proven effective in driving customer acquisition. The company's customer loyalty is outstanding, with a share of only 23% in the underpenetrated online lottery market (Zeal Network, 2024). This indicates a strong customer base that generates stable billings over the long term.

**International Expansion and High Growth Opportunities**

ZEAL Network's expansion into international markets, particularly its ONCE business in Spain, holds significant potential for future revenue growth. In H1 2024, the company generated €2.8m in revenue from operations in other countries, a 7% increase from last year (IGaming Business, 2024). As the online lottery market remains underpenetrated, there are high growth opportunities for ZEAL Network.

**Dividend Policy and Income Focus**

ZEAL Network's dividend policy is based on continuity and sustainable earnings development (Zeal Network, 2024). With a market share of 41% in Germany's online lottery brokerage, the company is the market leader and has a sustainable, continuously growing business model. This makes ZEAL Network an attractive investment for income-focused portfolios.


In conclusion, ZEAL Network (ETR:TIMA) deserves a spot on your watchlist due to its impressive growth, strong customer loyalty, international expansion opportunities, and attractive dividend policy. The company's focus on stable, cash-generating businesses aligns with the author's investment values, making it an ideal candidate for income-focused portfolios. As the online lottery market continues to grow, ZEAL Network is well-positioned to capitalize on this opportunity and generate consistent returns for investors.