Zeal Network posts record results as customer base and lottery revenue surge

Revenue exceeds expectations and guidance

Zeal reported €188.2 million in revenue for the year ending 31 December 2024. This result not only exceeded its 2023 total by 62.2%, but also outperformed both initial and revised guidance issued throughout the year. At the start of 2024, Zeal had projected revenue between €140 million and €150 million.

The company also achieved its highest-ever EBITDA at €61.9 million, up 88% year-on-year. Net profit climbed to €59.4 million, a 333.2% increase compared to 2023.

Lotteries continue to lead Zeal’s performance

The lotteries division remained Zeal’s main revenue driver. In 2024, lottery revenue reached €168.3 million, rising 59.3% from the previous year. Zeal attributed this growth to a favorable jackpot environment and the launch of its “Traumhausverlosung” draw, which offers players the chance to win a dream house.

Eurojackpot reached its maximum prize for 13 draws during the year, boosting engagement. Active customers grew by 25%, reaching 1.4 million. Average monthly revenue per lottery customer rose by 27.2%. Players won €876.8 million in total lottery prizes.

Lottery billings hit €1.08 billion in 2024, up 28% and surpassing the €1 billion threshold for the first time. Billings include all stakes and VAT, net of bets.

Online gaming builds momentum

Zeal’s online games segment also expanded significantly during its first full year of operation. The business, launched in June 2023 through Lotto24 and Tipp24, generated €9.9 million in revenue in 2024. That marks a 224.1% increase year-on-year.

Games billings totaled €133.1 million, up 220%. The company reported growth in both monthly active users and average revenue per customer across every quarter. In total, players won €28.7 million through online games.

Marketing spend boosts acquisition and engagement

Operating costs rose by 53.3% to €129.4 million in 2024. Zeal’s marketing expenses accounted for €56.9 million of this figure, a 58% increase year-on-year. According to the company, this spending strategy brought in 1.3 million new customers—more than twice the number acquired in 2023.

Despite the higher costs, Zeal delivered a pre-tax profit of €50.3 million, up 125.3%. Amortization and depreciation totaled €8.2 million, and net profit reached €59.4 million.

Leadership transition as Becker prepares to exit

Helmut Becker, Zeal’s CEO for the past decade, praised the 2024 results shortly after announcing his decision to step down. He will leave the company on 31 January 2025, at the end of his current term.

“In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue and EBITDA,” Becker said.

“In addition to the biggest growth in our core business since the company was founded, we have established ourselves as a pioneer in the German market with the launch of our Traumhausverlosung.”

Modest revenue growth forecast for 2025

For 2025, Zeal expects revenue between €195 million and €205 million. At the midpoint, this would represent a 6.3% increase from 2024. However, the company forecasts lower EBITDA of between €55 million and €60 million. That range would fall short of 2024’s figure, with the midpoint down 7.1%.

Zeal also plans to increase its marketing investment further. In 2025, marketing spending in Germany is set to rise to between €60 million and €70 million.