ZEAL records impressive nine-month results: Revenue and billings experience double-digit growth

ZEAL Network Reports Strong Growth in Revenue and Billings

In the first nine months of 2023, ZEAL Network SE, the leading German online provider of lottery products, achieved significant growth in both billings and revenue. The company also acquired a higher number of new customers compared to the previous year, which strengthens its foundation for future revenue growth.

CFO of ZEAL, Sebastian Bielski, stated, “The strong growth in our billings and revenue demonstrates our continued expansion and market leadership. The success in the online games segment also gives us confidence in our attractive and growing games offering.”

Increased Sales and Billings Due to Marketing Investments

Driven by a successful third quarter, ZEAL Group’s billings increased by 16 percent to €633.2 million in the first nine months of 2023. Revenue also grew by 16 percent to €86.0 million. The company’s gross margin remained close to the previous year’s figure at 12.5 percent.

During the attractive jackpot phases in January, March, June, and September, ZEAL capitalized on the opportunity to acquire new customers and expand its business volume. The company ramped up its marketing activities during these high jackpot phases and promoted future sales growth through intensified TV advertising.

Strong EBITDA Despite Increased New Customer Acquisition

In the first nine months of 2023, ZEAL acquired 518 thousand new customers, showing an increase compared to the previous year. Due to higher media-cost inflation, intensified competition for new customers, and increased TV advertising, the acquisition costs per registered new customer were higher than before. Despite the increased investment in marketing, EBITDA rose by 5 percent to €23.2 million.

First Figures for Online Games

ZEAL has released its first business figures for its online games offering, which was launched in June 2023. Revenue from the online games segment amounted to €1.2 million in the third quarter of 2023.

Confirmation of Forecast

ZEAL plans to expand its market leadership in the 2023 financial year by introducing new products, including additional online games. The company expects billings from lotteries (excluding games) in the range of €800 million to €830 million, assuming an average jackpot development. Revenue is anticipated to be between €110 million and €120 million, with EBITDA expected to range from €30 million to €35 million. ZEAL also plans to invest significantly more in new customer acquisition compared to the previous year, with marketing expenses projected to be between €34 million and €39 million.

ZEAL Network, revenue growth, billings, market leadership, online games, new customers, marketing investments, EBITDA, online provider, lottery products.

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