ZEAL Network Achieves Record Results and Expands Offerings in 2023
ZEAL Network SE, Germany’s leading online lottery provider, has unveiled its annual report for 2023, showcasing impressive growth in both its core lottery business and new online games segment.
The company’s strategic initiatives and product innovations have propelled it to new heights, affirming its market leadership position.
Robust Growth in Lottery Sector
The company’s lottery billings saw a significant increase of 11% to €843.3 million in 2023, up from €758.4 million the previous year. This growth was mirrored in its revenue, which also experienced a double-digit rise to €116.1 million, compared to €105.2 million in 2022. ZEAL’s EBITDA reached a new five-year peak at €32.9 million, up from €31.7 million in 2022, despite challenges in the jackpot environment.
Helmut Becker, CEO of ZEAL, commented on the company’s performance, “In 2023, we further expanded our position as market leader. We are benefiting from our strong brands. LOTTO24, for example, has developed into a winner’s factory, producing more record winners last year than any other lottery provider in Germany.”
This success reflects ZEAL’s effective market strategies and its ability to attract and retain customers.
Expansion into Online Games
2023 marked a pivotal year for ZEAL with the successful launch of its online games offering, which generated billings of €41.6 million. This new venture, facilitated through its subsidiary LOTTO24 AG, not only diversifies ZEAL’s product portfolio but also strengthens its foundation for future business growth.
Sebastian Bielski, CFO of ZEAL, stated, “Our successful start in the online games business clearly shows that we are in a position to successfully develop new business areas.”
Strategic Investments and Future Outlook
Despite the competitive market and a challenging jackpot environment, ZEAL’s strategic investments in marketing and brand development, particularly through increased TV advertising, have paid off. These initiatives, alongside the launch of the online games segment, contributed to the company’s EBITDA growth.
Looking ahead to 2024, ZEAL is set to continue its trajectory of expansion and innovation. The company aims to further cement its market leadership in the online lottery sector, accelerate the growth of its games offering, and introduce new products in the charity lottery segment.
With projected revenue in the range of €140 million to €150 million and EBITDA between €38 million and €42 million, ZEAL is poised for another year of remarkable achievements.
Our Comment on the Article
ZEAL Network’s performance in 2023 is a testament to the company’s resilience, strategic foresight, and commitment to innovation. The double-digit growth in its core lottery business, coupled with the successful foray into online games, positions ZEAL for continued success.
The company’s ability to adapt to market demands and explore new business avenues while maintaining a strong financial foundation is commendable. As ZEAL sets its sights on further expansion and product diversification in 2024, it remains a key player to watch in the evolving landscape of the online lottery and gaming industry.
