ZEAL Publishes H1 Report, Highlighting Exceptional Results

ZEAL Network, Germany’s leading provider of lottery products, has published its H1 report, highlighting impressive financial success. As the company’s “strong growth path” continued, its group revenue increased by a whopping 40%.

ZEAL’s H1 Metrics

In the first half of 2024, ZEAL reported revenue of €76.8 million ($83.9 million), up 40% year-on-year. In addition to that EBITDA increased even more strongly, standing at €20.1 million ($22 million) for H1, up 46% year-on-year.

ZEAL’s revenue growth was attributed to the strong performance of its lottery business. There, billings increased to €507.1 million, up 23% year-on-year. This resulted in revenue of €68 million ($74.2 million), marking an increase of 33% from the prior year period.

The increase in billing, ZEAL added, was due to the 21% increase in the average number of active customers and the 2% increase in the average billings per active player. For reference, the company recorded 1.3 billion active customers and average billings per user of €62.48 ($68.23).

Speaking of customers, the number of new registrations increased by 70% to 592,000, marking the second-highest figure in the company’s history. Acquisition costs per registered new customer, on the other hand, declined by 26% to an average of €33.20 ($36.25). Marketing expenses, on the other hand, increased by 28% to €25.5 million ($27.8 million).

ZEAL, meanwhile, improved the gross margin in the lottery business to 13.4% thanks to a change in its product mix and margin optimization. The company added that its games business, originally launched in June 2023, continued to gain traction.

The growth led to an increase in direct operating costs to €8.6 million ($9.4 million). Other operating expenses rose to €42.8 million ($46.7 million).

ZEAL noted that the favorable H1 results were in line with its earlier forecast.

ZEAL Launched an Unprecedented Raffle

A major highlight of the period was ZEAL’s launch of Traumhausverlosung, the first raffle in Germany in which participants get a shot at a fully furnished house. Each house is guaranteed to be raffled out regardless of the number of participants, providing players with a shot at a life-changing prize. In addition to a new home, participants can win a variety of other prizes.

Sebastian Bielski, ZEAL’s chief financial officer, commented on the H1 results, praising the increase in revenue and EBITDA. According to him, the results reflect excellent operating performance.

Bielski also praised the acquisition of new customers, highlighting the significant reduction of acquisition costs per newly registered customer.  He concluded: “We are thus benefiting from the continuous investment in brand development in recent years.”