Zeal Network Reports 40% Revenue Growth in First Half of the Year
Zeal Network has announced a robust 40% year-on-year increase in revenue for the first half of the year, driven by significant growth in both its lottery brokerage and its newly established gaming segment. Group revenue reached €76.8 million as the company saw a 70% rise in customer numbers.
Lottery Brokerage Success
The lottery brokerage segment experienced a 33% revenue increase, totaling €68 million. This includes €33.7 million from ticket fees and €34.2 million from commissions.
Monthly active users (MAU) in the lottery segment rose by 21% to nearly 1.4 million, a new record for the company.
Zeal attributed part of this success to favorable jackpots and increased marketing efforts around Eurojackpot.
Expansion of Online Gaming
Zeal’s online gaming division, launched just over a year ago, contributed €4.5 million in revenue with a diverse offering of 107 games.
The segment saw monthly active users reach 21,000. Additionally, Zeal generated €2.8 million outside Germany, particularly from ONCE in Spain, marking a 7% increase.
Increased Marketing Investment
Marketing expenditure rose by 28% to €25.5 million, alongside higher direct and indirect operating costs.
Despite these increased expenses, the company reported a 73% rise in operating profit to €16.1 million.
Pre-tax profit climbed 70% to €14.9 million, while net profit soared 561% to €36.9 million. EBITDA was up 46% at €20.1 million.
Strategic Focus on Customer Acquisition
Zeal CFO Sebastian Bielski highlighted the company’s strong performance, stating: “The very strong development of revenue and EBITDA reflects our excellent operating performance. We are particularly pleased that we have been able to acquire over half a million new customers since the beginning of the year. The acquisition of new customers has not only been exceptionally successful this half year, but also particularly efficient thanks to the significant reduction in acquisition costs per registered new customer. We are thus benefiting from the continuous investment in brand development in recent years.”
Leadership Transition
In May, Zeal Network announced that Peter Steiner would step down as chairman of the Supervisory Board at the company’s 2025 Annual General Meeting. Steiner, who joined the board in 2013 and became chairman in 2017, has been a pivotal figure in the company’s governance, also chairing the Supervisory Board of Zeal acquisition Lotto24 AG in 2019.
