Zeal Network has reported record first-half revenue of €121.8m ($140.3m), representing a 20% year-on-year increase as its German lottery operations benefited from customer growth and improved jackpot conditions.
EBITDA rose 10% to €38.9m, while net profit increased 12% to €21.8m. The EBITDA margin narrowed from 34.8% to 31.9% as Zeal increased spending on marketing, staffing and product diversification.
Marketing expenses grew 37% to €39.8m. The investment supported a 32% increase in newly registered customers to a record 659,000, although the cost per lead rose 7% to €50.20. Average headcount also increased 25% to 310 as the operator expanded into additional product categories.
Lottery revenue climbed 20% to €110.6m, remaining the main contributor to group performance.
Billings advanced 13% to €595.9m, while average monthly active customers increased 9% to 1.65 million. The lottery gross margin improved from 17.3% to 18.2%.
Zeal H1 financial performance, 2025 vs 2026
Comparison of Zeal Network’s revenue, EBITDA and net profit for the first half of 2025 and 2026, in millions of euros
Jackpot conditions strengthened after a subdued opening quarter. Germany’s Lotto 6aus49 reached its €50m maximum and remained there for 10 consecutive draws during Q2. Its average first-half jackpot increased to €26.8m from €8.4m a year earlier.
Zeal also continued to develop products designed to reduce its exposure to jackpot fluctuations. Dream Car Raffle launched in April as its third German charity lottery, following freiheit+ and Dream House Raffle.
The Games division generated revenue of €7.8m, up 17%, after Zeal expanded its B2C catalogue to approximately 790 titles.
Monthly active users rose 34% to 35,000, although average revenue per user declined 13% to €36.86. Segment EBITDA increased 2% to €3.2m.
The results precede Zeal’s proposed acquisition of the remaining 96.5% of SevenCanyon, which operates prize draws in the UK. The transaction includes an initial £33.8m payment and up to £4.8m linked to financial targets, giving Zeal direct access to a second national market.
Zeal retained its 2026 EBITDA forecast of €70m to €75m. Its €250m to €260m revenue guidance will be revised once the accounting treatment for SevenCanyon has been determined.
In May, Zeal reported Q1 revenue growth of 6% to €54.3m, while EBITDA declined 13% as marketing and personnel costs increased during a weaker jackpot period.
Zeal generated €67.5m in Q2 revenue, an increase of 34%, while quarterly net profit rose 40% to €13.5m
