Key Moments:
- Group revenue climbed by 34 percent to €162.6 million in the first nine months of 2025
- EBITDA surged 55 percent to €54.1 million during the same period
- The company raised its full-year 2025 revenue and EBITDA forecasts above previous guidance
Financial Highlights from the First Nine Months of 2025
ZEAL Network SE, recognized as Germany’s top online lottery operator, reported a robust period of growth across multiple business segments within the first nine months of 2025. The company realized a 34 percent rise in group revenue, reaching €162.6 million compared to €121.0 million in 2024. EBITDA demonstrated even stronger momentum, increasing by 55 percent to €54.1 million, up from €35.0 million in the previous period.
Lottery Segment Drives Revenue Gains
The standout performance in the lottery division was instrumental in fueling ZEAL’s overall revenue expansion. Lottery billings expanded by 12 percent, totaling €834.3 million from €743.1 million in 2024. Growth in the average number of monthly active users was significant, increasing 17 percent to 1,572 thousand (2024: 1,347 thousand). ZEAL also achieved a 3.0 percentage-point improvement in its gross margin, which reached 17.5 percent, up from 14.5 percent, primarily due to previous price adjustments and a revised product mix. As a result, lottery revenue jumped 36 percent to €146.0 million (2024: €107.6 million).
Charity Lotteries and the Dream House Raffle Program
The charity lottery initiative, Traumhausverlosung (Dream House Raffle), continued gaining momentum. Since its inception in August 2024, four homes have been awarded. The latest campaign, featuring a home on the North Sea coast, achieved the highest billings to date. The program’s fifth iteration, promising a dream house in the Bavarian Forest, is currently in progress.
Expansion and Growth in Games Division
ZEAL’s games segment maintained a strong growth trajectory through the first nine months of the year. The B2C games offering now encompasses nearly 600 titles, bolstered by collaborations with prominent developers, including Greentube and GGames. Revenue generated from games increased by 51 percent to €10.3 million from €6.8 million in 2024.
Marketing Investments Fuel Customer Base Expansion
The company’s focused marketing strategies supported a further expansion of ZEAL’s customer community. Newly registered customers grew by 9 percent, reaching a record 879 thousand (2024: 807 thousand) during the reporting period. Increased investments in marketing contributed to a 31 percent jump in customer acquisition costs per new user (CPL) to €46.52 (2024: €35.54).
Operating Costs and Profitability Metrics
Overall operating expenses rose by 29 percent to €81.2 million (2024: €63.2 million). Targeted marketing spend increased by 35 percent, totaling €50.0 million (2024: €36.9 million). Direct operating costs advanced from €12.4 million to €15.2 million, reflecting a 15 percent hike in customer pay-ins and an additional €0.8 million in external developer commissions tied to gaming growth.
EBITDA and EBIT See Strong Growth
Despite larger marketing investments, ZEAL benefited from efficiency improvements and economies of scale, allowing EBITDA to increase by 55 percent to €54.1 million (2024: €35.0 million). EBIT also surged 65 percent to €47.7 million, compared to €28.9 million in the prior period.
Updated 2025 Full-Year Guidance
ZEAL Network SE raised its financial outlook for 2025 in light of improved lottery margins and continued success with its charity lotteries. The company now projects annual revenue of €205 million to €215 million, up from the previous range of €195 million to €205 million. EBITDA expectations have also been raised, with guidance now set between €63 million and €68 million (previously: €55 million to €60 million). Actual results will depend on broader market factors, such as jackpot trends.
Financial Performance Overview
| Metric | First 9 Months 2025 | First 9 Months 2024 | Change (%) |
|---|---|---|---|
| Group Revenue (€ million) | 162.6 | 121.0 | 34% |
| EBITDA (€ million) | 54.1 | 35.0 | 55% |
| Lottery Revenue (€ million) | 146.0 | 107.6 | 36% |
| Lottery Billings (€ million) | 834.3 | 743.1 | 12% |
| Games Revenue (€ million) | 10.3 | 6.8 | 51% |
| New Customers Registered (thousand) | 879 | 807 | 9% |
| Customer Acquisition Cost (CPL) (€) | 46.52 | 35.54 | 31% |
| Operating Costs (€ million) | 81.2 | 63.2 | 29% |
| Marketing Expenses (€ million) | 50.0 | 36.9 | 35% |
| EBIT (€ million) | 47.7 | 28.9 | 65% |
Management Perspective
“In the first nine months of the year, we once again transformed our corporate strengths into excellent results and thereby continued our long-term success. We achieved strong revenue growth in all business areas with great operational efficiency, which is reflected in a significantly increased EBITDA margin. Since its launch last year, the Dream House Raffle has quickly become a very popular product. Across our core lottery brokerage business, charity lotteries, and games, we are well positioned for further growth,” says Andrea Behrendt, CFO of ZEAL.
- Author
Daniel Williams
