The significant increase in registered customer numbers drove a 40% year-over-year revenue growth in the first half of the year for Zeal Network, with the operator reporting notable growth in both its core lottery and newly established gaming divisions.
In the first half, group revenue reached EUR 76.8 million (GBP 66.1 million/USD 83.9 million), a substantial rise from EUR 54.8 million reported in the same period of 2023.
Zeal stated that the revenue growth was primarily due to a 70% increase in registered customer numbers during the first half of the year. Zeal welcomed a total of 592,000 new players in its lottery and gaming operations in Germany, a large portion of whom came from its lottery business's massive jackpots.
Zeal's lottery business continues to grow
Focusing on the lottery business, brokerage income grew 33% to EUR 68 million, with EUR 33.7 million from lottery fees and EUR 34.2 million from commissions. The division's monthly active users (MAU) increased by 21% to nearly 1.4 million, setting a new record for the group.
Zeal stated that the jackpot situation was overall "favorable," helping to attract more players. The Eurojackpot reached its peak of EUR 120 million for the second time this year in its April and June draws. Increased marketing around these jackpots, although costly, helped in customer growth.
However, the situation with Lotto 6aus9 was mixed. After setting a record jackpot of EUR 48 million at the start of the first half, the average prize money remained low for the rest of the period and saw a year-over-year decline.
Lottery operating revenue (including players' bets, brokerage bets, and related VAT net amount) grew by 23%, reaching EUR 508.1 million.
Analyzing the impact of the slot machine launch
Discussing Zeal's gaming business, revenue reached EUR 4.5 million. Zeal launched this division in June 2023, allowing German customers to play slot machines online.
Zeal stated that the new business division continued to make good progress in the first half of the year and added that the company was able to "significantly" expand and diversify its gaming products. By the end of this quarter, players had access to 107 different games.
The first half-year gaming monthly active users numbered 21,000, with turnover exceeding EUR 61.3 million.
Beyond its core German market, Zeal also mentioned its other operations, mainly its ONCE business in Spain. Zeal's operations in other countries generated EUR 2.8 million in revenue, up 7% from last year.
