German online lottery group ZEAL Network ZE cited a series of successful marketing measures as driving solid year-on-year growth during 2024 trading.
The company’s financials for January-December 2024 showed a 62% increase in revenue from €116.1m to €188.2m, driven by an increase in active customer numbers and a rise in lottery billings.
The average number of active customers rose 25% to 1.4 million, while billings from lotteries stood at €1.1bn, surpassing the €1bn mark for the first time and marking a significant increase on the €843.3m recorded in 2023.
This increase in customer numbers was, as stated above, driven by marketing initiatives, though the launch of new products may have also played a part. The ‘Traumhausverlosung’ (Dream House Raffle) in particular has been cited by company leadership.
Sebastian Bielski, CFO of ZEAL, said: “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 one billion 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.”
Extensive marketing activity never comes cheap, however, with the total spent on ZEAL’s campaigns rising 58% to €56.9m (2023: €45.5m). Other expenses rose 58% to €98m (€62m), while the direct costs of business operations were up 54% to €18.5m (€12m).
Despite these rising costs, the company was able to, as leadership explained, secure record EBITDA last year. The extensive marketing activity paid off it seems, with acquisition costs per new customer decreasing 23% to €35.1m (€45.5m).
At the close of 2024, EBIDA rose 88% from €32.9m to €61.9m. The company attributes this to ‘efficiency gains and scaling effects of the business model in relation to strong revenue growth’.
“In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue and EBITDA,” commented Helmut Becker, the outgoing CEO of ZEAL.
“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.
“For the third year in a row, our subsidiary LOTTO24 AG has produced more record winners than any other provider in Germany. Our success is also good news for the good cause – with € 382 million in 2024, ZEAL has generated the highest sum in the company’s history for social and community projects.”