Zeal Network reports double-digit revenue growth for Q2
German lottery firm sees revenue for the quarter stand at €40.7m, with lotteries revenue growing 37% year on year
Zeal Network has posted a Q2 2024 revenue increase of 45% year on year (YoY), while pointing to a strong increase in monthly active users (MAU) and gross margin across H1.
Total revenue for the quarter stood at €40.7m, with lotteries revenue standing at €36m, a 37% YoY jump, and igaming revenue coming in at €2.3m.
Group EBITDA saw triple-digit growth of 141% YoY to €10.7m, while net profit drastically increased 1,207% YoY from €1.2m to €15.9m.
MAUs were up 20% YoY to 1.4 million during that period, while average billings per user (ABPU) ticked up 3% YoY to €63.34.
The small rise in ABPU translated into a 14% spike in average revenue per user (ARPU) to €8.75.
Total lottery billings in the three months to 30 June amounted to €260.8m.
Igaming billings in Q2 rose to €29.9m from €553,000 in Q2 2023, as ABPU increased from €61.28 to €535.52.
ARPU on the gaming side of the Zeal business shot up from €5.49 to €41.21 over the past 12 months.
The strong increases on the igaming vertical were a result of Zeal launching the platform in June 2023.
Releasing its H1 2024 figures, the company also reported total revenue increased 40% YoY to €76.8m due to a strong increase in MAUs of 21% and ABPU up 2%, to €62.48, for its lottery arm.
EBITDA grew 46% YoY during H1 2024 to €20.1m, while billings jumped 23% YoY to €507.1m.
Lotteries revenue grew 33% to €68m, with igaming revenue standing at €4.5m.
Marketing expenses for the first half of 2024 were up 28%. The firm pointed to the “very good jackpot situation used to win new customers” with cost per lead down 26% YoY to €33.20.
New registered customers increased significantly to 592,000, up 70%, because of a strong jackpot situation coupled with efficient marketing measures, according to the company.
Commenting on a “successful” H1, Zeal CEO Sebastian Bielski said: “The very strong development of revenue and EBITDA reflects our excellent operating performance.
“We are particularly pleased that we have been able to acquire over half a million new customers since the beginning of the year.”
He added: “The acquisition of new customers has not only been exceptionally successful this half year, but also particularly efficient thanks to the significant reduction in acquisition costs per registered new customer.
“We are thus benefiting from the continuous investment in brand development in recent years.”
Notable events H1 2024 included the firm being granted a licence to launch its new charity lottery, Traumhausverlosung, which has been available since 1 August.
Zeal reiterated its 2024 guidance, with revenue expected to land between €140m and €150m, with an EBITDA range of €38m to €42m.