ZEAL Network’s leadership is confident that the firm has established itself as Germany’s leading online lottery operator after declaring growth in yet another quarter.
Closing the opening quarter of 2025, the group reported year-over-year revenue growth of 42% from €36.1m to €51.1m, while EBITDA rose 89% from €9.4m to €17.7m.
The company has attributed this success to continued growth in its customer base over the past 12 months, a similar trend highlighted in its full year 2024 report published earlier this year.
The overall number of monthly active users (MAU) across the group rose 13% to 1,507,000 between January-March 2025. As with 2024, this growth in Q1 can be heavily attributed to the group’s extensive marketing investments.
“The first quarter of 2025 was not only extremely successful for ZEAL, but also highly indicative of our future direction,” ZEAL’s forward to its financial statement read.
“We achieved significant growth in both revenue and profitability, while continuing to add new customers and thus strengthening our position as Germany’s leading online lottery provider.”
The group has noted, however, that there were some challenges during Q1. An absence of maximum jackpots compared to Q1 2024 saw billings from lotteries rise by 7% – though in comparison to the rise in overall revenue this is just a minor inconvenience.
As with previous quarters, marketing expenses rose during Q1, specifically by 16% to €15.5m (€13.4m). As stated above, this is a key reason behind the group’s customer acquisition success and subsequent revenue.
Other operating expenses rose 21% from €21m to €25.4m, indirect operating expenses rose 39% from €3.6m to €4.9m and direct operating expenses rose 21% from €4m to €4.7m.
Again though, as previously noted, the group’s substantial revenue gains during Q1 made these rises in expenses somewhat obsolete and its overall EBITDA margin was up from 26.1% to 34.7%.
ZEAL also reported progress with product diversification, citing ‘excellent progress’ with its online games business. This segment’s games portfolio has been expanded to over 400 titles, reporting a 56% increase in revenue to €3.4m (€2.2m) in the process.