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Zeal Network has reported its financial results for the first half of 2024. In total, revenue for the lottery product provider grew by 40% year-on-year to €76.8m ($83.9m), with an EBITDA of €20.1m, up 46%.
New customer numbers were up significantly, growing by 70% year-on-year. Revenue from Zeal’s lottery business was also on the rise, up 33% to €68m.
Lottery
Zeal’s core lottery business, which accounted for 88.5% of Zeal Networks H1 revenue, grew 33% in annual revenue in part due to a 21% increase in average monthly customers, totalling 1,353,000 people. Zeal saw average billings per active customer increase by 2% to €62.48 per person, with a total billings increase of 23%, coming to €507.1m – in line with the increase in monthly customers and their increased average spend.
Lottery gross margin totalled 13.4%, up from last year’s 12.5%, on account of ‘change in the product mix and further margin optimisations,’ according to the company.
Gaming
Zeal’s game business launched in June 2023, making a year-on-year comparison currently non-applicable. However, the sector has seen continued growth from Q1 2024 to Q2.
Jackpot
Jackpot players grew by 70% year-on-year, totalling 592,000 people. This was bolstered by a drop in customer acquisition costs, which dropped by 26% to a cost per lead (CPL) of €33.20. This was offset by increased marketing expenses, up 28% to €25.5m, as well as increased direct operating costs and operating expenses, reaching €8.6m and €42.8m, up 59.3% and 35.4% year-on-year respectively.
Recent activity
Zeal launched a charity lottery, Traumhausverlosung, on 1 August, giving German players the opportunity to win a fully furnished home. During H1, Zeal also announced its latest leadership change, with Peter Steiner, Chairman of the Supervisory Board, set to leave the role in 2025 following a 12-year tenure. Zeal also reported it is in the process of finding a candidate to replace Frank Strauß, a board member who passed away in May 2024.
Quotes
On the results, Zeal CFO Sebastian Bielski said: “The very strong development of revenue and EBITDA reflects our excellent operating performance. We are particularly pleased that we have been able to acquire over half a million new customers since the beginning of the year.
“The acquisition of new customers has not only been exceptionally successful this half year, but also particularly efficient thanks to the significant reduction in acquisition costs per registered new customer. We are thus benefiting from the continuous investment in brand development in recent years.”
