ZEAL Network SE, a leading German online lottery provider, has reported substantial growth in revenue, customer acquisition, and earnings for the first nine months of 2024, prompting an upward revision of its full-year forecast. Group revenue rose by 41% to €121.0 million, while EBITDA saw a 51% increase, reaching €35.0 million.
The primary driver of ZEAL’s revenue growth was its lottery segment, which grew by 35%, bringing in €107.6 million. Monthly active customer numbers increased by 17% to 1.35 million, contributing to a rise in billings and a two-point improvement in the gross margin to 14.5%. ZEAL achieved record customer acquisition figures, with 807,000 new registrations, marking a 56% increase from the previous year. Efficient marketing strategies reduced customer acquisition costs by 24%, lowering the cost per lead (CPL) to €35.54.
Despite a 29% rise in other operating expenses, including marketing costs, ZEAL maintained strong profitability. The strategic focus on customer acquisition during favorable jackpot periods contributed to a 20% increase in marketing spending. Direct operating costs also rose, driven by higher expenses related to payment processing, customer verification, and game expansion efforts.
As a result of its strong performance, ZEAL has raised its revenue forecast for 2024, now expecting between €158 million and €168 million, up from the previous range of €140 million to €150 million. EBITDA is projected to land between €42 million and €46 million.
The company also marked significant milestones this year, including the launch of Germany’s first Dream House Raffle in August, which drew greater-than-expected demand. ZEAL’s squeeze-out acquisition of LOTTO24 AG was completed in October, consolidating its holdings and aligning group structure. The company is now moving forward with profit and loss transfer agreements, to be proposed at an upcoming Extraordinary General Meeting.
This momentum underscores ZEAL’s strengthened market position as it continues to innovate and drive growth in the German lottery sector.
“We are proud of our excellent business development since the beginning of the year, which is reflected in significant growth in revenue, EBITDA and new customer acquisition. The efficiency gains and scale effects of our business model are reflected in a disproportionately high increase in profitability. Although the jackpot situation in the third quarter was less favorable than at the beginning of the year, we were able to significantly increase lottery revenue by 42 % compared to the same period last year. Another highlight of the third quarter was the launch of our new charity lottery Traumhausverlosung, which significantly exceeded our expectations,” says Sebastian Bielski, CFO of ZEAL.
