ZEAL Network SE reports 34% revenue growth in 2025

Germany-based online lottery provider ZEAL Network SE has reported exceptional results for the first nine months of 2025, demonstrating the company’s ability to maintain profitable growth while expanding its customer base and product offerings. The group achieved a 34 percent increase in total revenue to €162.6 million, up from €121.0 million in the same period of 2024. The company’s EBITDA also surged by 55 percent to €54.1 million, highlighting ZEAL’s growing operational efficiency and strong market positioning.

According to Andrea Behrendt, CFO of ZEAL Network SE, “In the first nine months of the year, we once again transformed our corporate strengths into excellent results and thereby continued our long-term success. We achieved strong revenue growth in all business areas with great operational efficiency, which is reflected in a significantly increased EBITDA margin. Since its launch last year, the Dream House Raffle has quickly become a very popular product. Across our core lottery brokerage business, charity lotteries, and games, we are well positioned for further growth.”

This statement underscores ZEAL’s steady progress in optimizing its operations and achieving sustainable profitability through targeted expansion and innovative product diversification.

Strong performance in core lottery business

The company’s lottery segment remains the foundation of its growth, delivering an impressive 36 percent increase in revenue during the first nine months of 2025. Lottery billings rose 12 percent to €834.3 million compared to €743.1 million in 2024.

This surge in lottery billings was primarily driven by a 17 percent rise in monthly active users (MAUs), reaching 1.57 million compared to 1.35 million the previous year. ZEAL also improved its gross margin by 3 percentage points, moving from 14.5 percent to 17.5 percent. This improvement was largely due to strategic pricing adjustments made in the prior year and a shift in the product mix toward higher-margin offerings.

The simultaneous increase in both customer activity and gross margin resulted in a substantial rise in lottery-related revenues, solidifying ZEAL’s leadership in Germany’s regulated online lottery market.

Dream House Raffle strengthens customer engagement

One of ZEAL’s most remarkable success stories continues to be its charity lottery initiative, the “Traumhausverlosung” (Dream House Raffle). Since its launch in August 2024, the raffle has gained rapid popularity, attracting a diverse customer base interested in socially responsible gaming.

The company has successfully completed four raffles to date, each offering participants the opportunity to win a luxury home. The most recent raffle, which featured a house on the North Sea coast, became the most successful campaign so far in terms of billings.

Currently, the fifth Dream House Raffle is underway, offering participants the chance to win a dream property in the Bavarian Forest. Beyond revenue contribution, this product has also strengthened ZEAL’s image as a company that combines entertainment with social responsibility.

The Dream House Raffle has proven to be more than a simple lottery—it has become a bridge between charitable causes and customer engagement, contributing to long-term brand loyalty.

Expanding games business sees 51 percent growth

ZEAL’s games segment has also delivered notable growth, with revenue increasing by 51 percent year-over-year to €10.3 million compared to €6.8 million in 2024. This development was achieved through the company’s strategic expansion of its B2C portfolio, which now includes nearly 600 gaming titles.

This expansion was partly made possible through new partnerships with leading international game developers, including Greentube and GGames, enabling ZEAL to offer a wider range of entertainment options to its customers.

The company’s focus on product diversity and digital innovation continues to enhance its competitiveness within the European iGaming ecosystem. The integration of advanced gaming technology and responsible gaming mechanisms has further solidified ZEAL’s reputation as a trustworthy and customer-oriented digital operator.

Strategic marketing drives record customer growth

ZEAL’s marketing and customer acquisition strategy in 2025 has produced record results. During the first nine months of the year, the company added 879,000 new registered customers, marking a 9 percent increase compared to the same period in 2024.

This success, however, came with higher marketing investment. The cost per lead (CPL) rose by 31 percent to €46.52, reflecting the company’s intensified promotional efforts in competitive markets. Marketing expenditures grew 35 percent to €50 million, up from €36.9 million the previous year.

Despite the higher costs, the investment yielded substantial returns, with a growing customer base and improved retention metrics across ZEAL’s platforms. The company emphasized that this increase in spending was part of a calculated long-term growth plan rather than short-term campaign escalation.

Other operating expenses also increased by 29 percent to €81.2 million, largely due to higher marketing and operating costs tied to growing transaction volumes. Direct operating expenses rose from €12.4 million to €15.2 million, reflecting both increased customer deposits and an additional €0.8 million in commissions to external developers supporting the expanding games business.

Operational efficiency boosts EBITDA and EBIT

Even with the rise in marketing and operating costs, ZEAL demonstrated its ability to leverage economies of scale effectively. The company’s EBITDA grew by 55 percent to €54.1 million, while EBIT climbed by 65 percent to €47.7 million compared to €28.9 million in 2024.

This performance reflects the company’s capacity to enhance profitability through disciplined cost management, streamlined digital operations, and efficient scaling of its platforms. The margin expansion highlights ZEAL’s continued commitment to financial prudence and operational excellence.

Financial outlook and raised forecast for 2025

Given the strong performance in the first three quarters, ZEAL Network SE has raised its full-year forecast for 2025. The company now expects total revenues to range between €205 million and €215 million, an upward revision from the earlier projection of €195 million to €205 million.

Additionally, the company anticipates EBITDA between €63 million and €68 million, exceeding the previously forecasted range of €55 million to €60 million.

This adjustment reflects the company’s optimism regarding continued growth, driven by an improved lottery gross margin, expanding games portfolio, and the strong momentum of its charity lotteries. ZEAL also highlighted that further performance would depend on external factors, including jackpot developments and broader economic conditions.

Commitment to responsible growth and compliance

As a publicly listed company operating in a tightly regulated sector, ZEAL Network SE continues to prioritize responsible gaming practices and regulatory compliance. The company has repeatedly emphasized its adherence to Germany’s State Treaty on Gambling (Glücksspielstaatsvertrag) and its commitment to ensuring player protection.

ZEAL’s focus on maintaining transparent operations, fair play, and data security has reinforced its standing with both customers and regulatory bodies. By maintaining a balanced approach between growth and responsibility, ZEAL aims to secure sustainable long-term success within Germany’s evolving online lottery market.

Conclusion

ZEAL Network SE’s performance in 2025 underscores its position as a leading force in the digital lottery and gaming landscape. Through consistent investment in technology, innovative product development, and customer acquisition, the company has successfully built a resilient business model capable of withstanding market fluctuations.

The company’s ability to combine strong financial growth with a commitment to social and regulatory responsibility positions it well for continued success. With the Dream House Raffle, an expanding games portfolio, and an ever-growing customer base, ZEAL appears ready to sustain its positive trajectory in the coming years.

FAQs

What is ZEAL Network SE?
ZEAL Network SE is a German online lottery and gaming provider offering digital lottery brokerage, charity lotteries, and online games across regulated markets.

How much revenue did ZEAL Network SE generate in the first nine months of 2025?
ZEAL Network SE reported revenue of €162.6 million for the first nine months of 2025, representing a 34 percent year-over-year increase.

What contributed most to ZEAL’s revenue growth?
The primary growth drivers were the strong performance of the lottery business, the success of the Dream House Raffle, and the expansion of the games segment.

How did ZEAL’s EBITDA change in 2025?
EBITDA rose by 55 percent to €54.1 million, driven by higher revenues, operational efficiencies, and improved gross margins.

What is the Dream House Raffle?
The Dream House Raffle (Traumhausverlosung) is ZEAL’s charity lottery initiative that allows participants to win homes while supporting charitable causes.

How did ZEAL’s customer base evolve in 2025?
The company recorded 879,000 new registered customers, marking a 9 percent increase compared to 2024.

Why did ZEAL’s marketing expenses increase?
Marketing costs rose due to targeted campaigns aimed at acquiring new customers and strengthening brand visibility in competitive markets.

What are ZEAL’s revenue and EBITDA forecasts for 2025?
ZEAL expects total revenue between €205 million and €215 million and EBITDA between €63 million and €68 million for the full year 2025.

Which companies partnered with ZEAL in 2025?
ZEAL expanded its games portfolio through collaborations with developers such as Greentube and GGames.

What are ZEAL’s priorities for the future?
ZEAL aims to continue expanding responsibly through innovation, compliance, customer engagement, and sustainable revenue growth.