ZEAL Network SE, Germany’s leading online lottery provider, reported substantial growth in revenue and customer acquisitions in the first nine months of 2024. This positive trend led to raised forecasts for the financial year, reflecting ZEAL’s continued momentum. Key initiatives and strategic decisions have boosted both profitability and customer engagement.

  • Revenue growth reached 41% compared to the previous year, with total revenue climbing to €121 million. This increase reflects ZEAL’s expanding market presence and effective strategies. The company’s EBITDA rose by 51%, demonstrating increased profitability.
  • A record 807,000 new customers joined ZEAL in the first nine months of the year, marking a 56% increase. ZEAL’s customer acquisition strategy proved effective, even in the absence of major jackpots. The company’s improved marketing efficiency reduced acquisition costs by 24% per customer.
  • Higher lottery revenue was a key driver, growing by 35% to €107.6 million. Increased activity among lottery users also pushed billings up by 17% year-over-year. ZEAL’s product mix enhancements improved its gross margin by 2 percentage points.
  • ZEAL launched its new charity lottery, the Traumhausverlosung, which performed better than expected. The first prize draw took place in August, attracting strong demand. This initiative underscores ZEAL’s commitment to social causes.
  • The share repurchase offer announced by ZEAL allows up to €25 million for share buybacks. This offer aims to optimize the capital structure and follows the cancellation of all treasury shares. The repurchase offer period will run from November 18 to November 29, 2024.
  • Increased forecast for 2024 reflects ZEAL’s confidence in its performance, now expecting revenue of €158-168 million. EBITDA projections were also raised to €42-46 million, demonstrating solid financial health. The revised forecast shows ZEAL’s adaptability in a dynamic market.
  • The squeeze-out of LOTTO24 AG was completed, consolidating ZEAL’s control. By purchasing remaining shares, ZEAL has streamlined its corporate structure. This move supports ZEAL’s strategic goal of growth and efficiency.
  • ZEAL’s operating expenses rose by 29% due to its aggressive growth strategy and higher marketing investments. Marketing costs increased to €36.9 million as ZEAL capitalized on favorable jackpot conditions. Direct operating costs also rose, driven by payment and customer service expenses.