ZEAL Network generates record revenue as post-tax profit rises more than 300%
German lottery operator achieves company all-time highs in several key metrics, as online gaming and active customer growth more than doubles
ZEAL Network has posted record full-year revenue of €188.2m for 2024, driven by strong lottery growth, a sharp rise in the number of active customers and “successful marketing measures”.
The German operator’s topline figure represents a 62% year-on-year (YoY) increase from 2023’s total of €116.1m, the firm’s earnings report stated.
An “exceptional jackpot environment” that included 13 peaks in 2024 was also cited as a factor in the company’s record revenue.
For the first time in the operator’s history, total lottery billings surpassed the €1bn mark to sit at €1.1bn, up 28% from €843.3m recorded in 2023.
Additionally, the Hamburg-based firm nearly doubled its EBITDA, with the metric coming in at €61.9m, a steep 88% YoY climb from the €32.9m generated in 2023, with bosses attributing the increase to “efficiency gains and scaling effects of the business model”.
This is despite the fact that operating expenses climbed 58% to €98m, with the notable cost rise due to strategic marketing expenses climbing by 58% to €56.9m.
Both revenue and EBITDA came in well above original guidance issued in early December. Post-tax profit for 2024 soared 333.2% to €59.4m.
Breaking revenue down by vertical, ZEAL’s lotteries segment rose 59% YoY to €168.3m, helped in large part by the €1bn in lottery billings as well as ZEAL’s gross margin climbing to 15.6%, due to the ticket price hike that came into effect in July.
Monthly active users (MAUs) for lotteries climbed 25% to 1.4 million, while average billings per user (ABPU) saw a marginal uptick of 2% to €62.68.
The operator’s presence in the online market grew by 2.4 percentage points, with ZEAL now boasting a 43.8% online market share.
Revenue from the group’s igaming segment saw a significant increase, rising by 224% to sit at €9.8m.
As of 31 December 2024, ZEAL’s online gaming arm boasted 293 games. The division saw 25,800 MAUs in the final three months of last year, a ZEAL record.
Management heralded “more efficient marketing measures” as a key factor behind the firm hitting another milestone of 1.3 million newly registered customers within the year, more than double the 597,000 recorded in 2023.
In turn, the company reported a decline in customer acquisition costs (CPL), as the metric fell by 23% to €35.6.
As a result of the strong 2024 performance, ZEAL has outlined plans to expand its presence as a market leader in Germany.
The company has published 2025 revenue guidance landing between €195m and €205m, while ZEAL anticipates EBITDA to be between €55m and €65m.
Helmut Becker, Zeal CEO, reflected on the impact of the operator’s strong 2024 display. He commented: “In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue and EBITDA.
“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 dream house raffle.”
Sebastian Bielski, ZEAL CFO, echoed a similar sentiment: “Thanks to targeted marketing measures and very successful new customer acquisition in an exceptionally good jackpot year, we reached the milestones of one million new customers and €1bn in lottery billings for the first time.
“We are proud to have achieved the highest revenue in our company’s history. At the same time, we were able to demonstrate the enormous profitability and scalability of our business model with a record EBITDA.”
ZEAL announced this week that Becker would step down as CEO in January 2026 after declining to renew his current contract.
Bielski will also leave the business next month and will be replaced by LOTTO24 CFO Andrea Behrendt.