Mr Viral
Zeal Network posted record revenue and EBITDA during what was its 25th anniversary in 2024, while the online lottery provider also saw bottom-line net profit rise 333.2% to €59.4 million.
Revenue for the 12 months to 31 December 2024 hit €188.2 million (£157.1 million/$203 million). This beats the previous year by 62.2%, figures published today (26 March) by Zeal show.
It is also some way ahead of initial guidance stated at this point last year, when Zeal hoped to report between €140 million and €150 million in revenue. In addition, it surpasses restated guidance from throughout 2024.
Lotteries lead the way for Zeal
The main reason for this increase, Zeal said, was due to growth within its lotteries division. In total, lotteries revenue for the year reached €168.3 million, an increase of 59.3% from the previous year.
Taking a closer look at the lotteries division, Zeal said it was helped by a “positive” jackpot situation. The Eurojackpot reached the maximum amount for 13 draws in 2024. Zeal also launched its new “Traumhausverlosung” draw, offering players the chance to win their dream house.
Coupled with increased marketing measures, this pushed the average number of active customers up 25% to 1.4 million.
Average revenue from lotteries per active customer per month jumped 27.2%. Players won a total of €876.8 million from lotteries in 2024.
At the same time, billings from lotteries hit €1.08 billion, up 28% and the first time that the total has exceeded the €1 billion mark. Billings comprise all stakes, including brokerage stakes and associated VAT, net of bets.
Online gaming growth continues in 2024
Zeal’s other core business area, online games, launched in Germany in June 2023, through its Lotto24 B2C subsidiary and sister brand Tipp24.
The first full year of operation during 2024 saw revenue reach €9.9 million, an increase of 224.1%. This rise, however, is no great surprise seeing as the launch only took place halfway through the previous year.
Monthly active users were higher year-on-year during each quarter of 2024, as was average revenue per active customer per month. Players won €28.7 million, while games billings for the year topped €133.1 million, up 220%.
Zeal spends money to make money
In terms of spending, operating costs were 53.3% higher than the previous year at €129.4 million. Zeal spent more across all areas during the year, with the main outgoing being marketing at €56.9 million, up 58%.
However, as noted by Zeal, increased marketing played a major part in growing revenue. Zeal added that this also helped it draw a record 1.3 million new customers throughout 2024 – more than double the previous year’s total.
Even after accounting for these higher operating expenses EBITDA for the year topped €61.9 million. This surpasses the previous year by 88% and is a new, annual record for the group.
Amortisation and depreciation costs were €8.2 million, while after also including interest expenses, pre-tax profit was €50.3 million, up 125.3% year-on-year.
After tax, Zeal was left with a net profit of €59.4 million, a 333.2% increase from 2023.
Zeal a ‘pioneer’, says outgoing CEO Becker
Commenting on the full-year results, CEO Helmut Becker was full of praise. Incidentally, the results have been published just two days after it was announced that Becker will stand down as CEO.
Becker will not extend his current contract after 10 years as CEO. This is due to conclude on 31 January next year, when he will officially depart the business.
“In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue and EBITD,” Becker said.
“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 Traumhausverlosung.”
What can we expect from Zeal in 2025?
Looking to the current year, Zeal sets out certain expectations for the business in terms of both revenue and EBITDA.
Starting with revenue, guidance from Zeal places this at between €195 million and €205 million for 2025. The midpoint of this – €200 million – would surpass the 2024 total by 6.3%.
As for EBITDA, Zeal said this will likely reach between €55 million and €60 million. Based on a midpoint of €57.5 million, however, this would fall 7.1% short of 2024.
Zeal also noted that it intends to expand its marketing in Germany during 2025 by between €60 million and €70 million.
