Zeal Network SE delivered strong results in the first half of 2025, with a 32% year-on-year increase to €101.5 million revenue. This was fueled by increased growth in its core lottery operations and a growing B2C games portfolio. The German-based online lottery provider saw EBITDA rise by 76% to €35.4 million, amid higher operating costs.

The revenue boost was due to a 34% increase in income from Zeal’s lottery segment. Despite a relatively weaker jackpot environment for flagship products such as Eurojackpot compared to last year, lottery billings still rose 4% to €527.3 million. Following a better product mix and introduction of pricing changes, the gross margin improved by 3.8% to 17.3%

User Growth and Acquisition Strategy

Zeal’s active customer base keeps growing, with monthly active lottery users increasing by 12% to 1.5 million. The company added 499,000 new customers during the first six months of the year.

Customer acquisition costs also rose by 41% to €46.93 per lead. The company attributed this to stronger marketing efforts in a competitive digital landscape. Nevertheless, the growth in active users signals strong brand retention and engagement within its digital platforms.

Games Segment and Cost Pressures

The company’s B2C games portfolio includes over 480 titles, contributing to a 49% increase in games revenue. Expanding into digital entertainment has been a key component of Zeal’s strategy to boost its revenue streams beyond traditional lottery offerings. However, this came with increased costs. 

Total operating expenses rose 15% to €49.4 million, with indirect costs surging 20% due to higher spending on consulting, freelancers and software. Despite rising costs straining profits, the company still nearly doubled its EBIT to €31.1 million. This shows that its digital-focused business model can handle growth efficiently.

Strategic Expansion and Outlook

Zeal also took steps to broaden its strategic footprint in the online lottery space. During the reporting period, the company announced a joint investment with France’s FDJ United into Swedish iLottery operator Random State. The aim was to leverage regional market insights and fast-track digital transformation. This move is part of an initiative to drive innovation in the sector, expand cross-border partnerships, and explore new European markets.

Leadership changes also took place in July, with Stefan Tweraser appointed CEO in place of Helmut Becker. The company reaffirmed its full-year guidance first issued in March and remains confident in maintaining its trajectory through the second half of the year.