Zea’s net profit rockets 332.2% during record 2024

Zeal Network celebrates a remarkable milestone in 2024, marking its 25th anniversary with record-breaking revenue and EBITDA figures, as net profit surged by an impressive 333.2%, reaching €59.4 million.

For the fiscal year ending December 31, 2024, Zeal reported revenue of €188.2 million (£157.1 million/$203.0 million), representing a staggering 62.2% increase over the previous year, as highlighted in their latest financial disclosure on March 26.

These results significantly exceed prior projections made in the same quarter last year, where the company initially anticipated earning between €140.0 million and €150.0 million. The actual figures also outperformed revised forecasts issued throughout 2024.

Lotteries Drive Zeal’s Success

The primary driver behind this revenue increase was the robust performance in Zeal’s lotteries division, which achieved a total revenue of €168.3 million—an impressive 59.3% rise year-on-year.

Key to this success was a fortuitous jackpot situation. The Eurojackpot reached its ceiling for 13 draws in 2024, showcasing the game’s popularity. Additionally, Zeal introduced its innovative ‘Traumhausverlosung’ draw, providing players with the unique opportunity to win their dream home.

In tandem with aggressive marketing campaigns, the average number of active customers on the platform soared by 25.0%, totaling around 1.4 million. Average revenue from lotteries per active customer per month also saw a remarkable uptick of 27.2%. Overall, players collectively won €876.8 million in lottery prizes in 2024, while total billings from lotteries exceeded the €1.0 billion mark for the first time, reaching €1.08 billion—an increase of 28.0%.

Online Gaming Continues Its Ascent

Turning to Zeal’s expansion into online games, operations commenced in Germany in June 2023 through its Lotto24 B2C subsidiary, along with the Tipp24 platform. The first entire year of revenue from this sector totaled €9.9 million, reflecting a substantial increase of 224.1%.

This growth, while substantial, aligns with expectations given that the launch occurred midway through the prior year. Throughout 2024, monthly active users consistently improved quarter-over-quarter, as did the average revenue per active customer. Players accrued a total of €28.7 million in winnings, with games billings skyrocketing to €133.1 million, marking a remarkable growth of 220.0%.

Strategic Investments Fuel Growth

On the operational side, Zeal experienced a 53.3% increase in operating costs, reaching €129.4 million. This growth in expenditure was evident across multiple areas, with marketing costs alone accounting for €56.9 million—up 58.0% from 2023.

As emphasized by Zeal, this increase in marketing investment played a crucial role in revenue generation, resulting in a record addition of 1.3 million new customers throughout 2024—more than double that of the previous year.

Even after accounting for rising expenses, Zeal achieved an EBITDA of €61.9 million, an 88.0% improvement year-on-year, setting a new benchmark for the company. Amortization and depreciation also contributed €8.2 million, leading to a pre-tax profit of €50.3 million, representing a 125.3% increase. After tax implications, Zeal’s net profit escalated to €59.4 million, demonstrating a remarkable surge of 333.2% compared to the previous year.

Outgoing CEO Helmut Becker Reflects on Zeal’s Achievements

Helmut Becker, the outgoing CEO, expressed his satisfaction with the results, which were unveiled just two days following his announcement to step down after a decade in leadership, concluding his contract on January 31, 2025.

Becker stated, “In our anniversary year 2024, we achieved a record triple in our business metrics—new customers, revenue, and EBITDA. We have not only accomplished the highest growth rate in our core business since the company’s inception but have also established ourselves as a pioneer within the German market thanks to the launch of our Traumhausverlosung.”

Looking Ahead: Zeal’s 2025 Projections

As the company moves forward, Zeal provides optimistic guidance for 2025, projecting revenue between €195.0 million and €205.0 million. This translates to a midpoint estimate of €200.0 million, indicating a modest growth of 6.3% over 2024 figures.

In terms of EBITDA, projections suggest a range of €55.0 million to €60.0 million, with a midpoint of €57.5 million—7.1% lower than the 2024 performance. Furthermore, Zeal indicates intentions to expand its marketing efforts in Germany, forecasting an investment of between €60.0 million and €70.0 million in the coming year.