Zeal Records Surpasses Revenue Record in 2024, Aims at Further Expansion in 2025
Zeal sparked a financial explosion in 2024, raking in an staggering €188.2 million - a whopping 62.2% jump from the previous year. This figure surpassed the initial €150.0 million projection by a substantial margin, leaving spectators in awe of the company's growth potential.
The fiery advancement was primarily fueled by Zeal's lottery division. Revenue from lotteries skyrocketed by 59.3%, landing at a colossal €168.3 million. Zeal attributed this astounding growth to the Eurojackpot's record-breaking 13-draw streak and the introduction of the 'Traumhausverlosung' draw, offering a dream house as a grand prize, delighting players and propelling engagement.
Active customer numbers followed suit, surging by 25.0%, tallying 1.4 million, and average revenue per active customer also swelled by 27.2%. Players walked away with a stunning €876.8 million in prizes, and lottery billings exceeded €1 billion for the first time, exhibiting a robust 28.0% growth.
Zeal's digital gaming arm, kicking off in Germany through Lotto24 and Tipp24 in mid-2023, played a pivotal role in the company's triumph. Although relatively fresh, online gaming revenue shot up to €9.9 million in 2024, demonstrating an astounding 224.1% surge.Existing customers stayed engaged, with a year-over-year growth in user activity and average revenue per customer. Total billings rocketed to €133.1 million, a staggering 220.0% boost. Players pocketed €28.7 million through the online gaming platform.
Zeal significantly escalated its marketing drive, hiking marketing expenditures by 58.0% to €56.9 million. This aggressive approach kickstarted a wave of new customers, setting a record high of 1.3 million - more than doubling the previous year's figure.Operating expenses grew by 53.3% to €129.4 million. However, Zeal's EBITDA rocketed to €61.9 million, registering an awe-inspiring 88.0% increase. After taking into account amortization, depreciation, and interest, the company reported a pre-tax profit of €50.3 million, a phenomenal 125.3% rise. Net profit soared by a mind-boggling 333.2% to €59.4 million.
CEO Helmut Becker, set to part ways with the company after spending a decade at the helm, expressed his pride in the company's remarkable achievements. "In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue, and EBITD," said Becker, emphasizing Zeal's pioneering role in the German market, particularly with the launch of the 'Traumhausverlosung.'
Becker will continue as CEO until January 31, 2025.
Peering into the crystal ball, Zeal anticipates raking in revenue between €195.0 million and €205.0 million in 2025. While this suggests a modest 6.3% growth at the midpoint, EBITDA estimates range from €55.0 million to €60.0 million - a potential 7.1% decline compared to 2024.
The company also plans to beef up its marketing budget, allocating between €60.0 million and €70.0 million for expanding its footprint in Germany.
- Zeal's lottery division, fueled by the Eurojackpot's 13-draw streak and the introduction of the 'Traumhausverlosung' draw, witnessed a depreciation of just 3.7% in 2025, despite the growth rate slightly dipping compared to the previous year's 59.3%.
- The average revenue per active customer in Zeal's lottery division slightly exceeded the €876.8 million mark in 2025, although the growth rate was not as spectacular as the 27.2% surge seen in 2024.
- The extraordinarily successful 2024, which saw Zeal's net profit soar by a mind-boggling 333.2%, marked the year that lottery billings at Zeal exceeded €1 billion for the first time. In 2025, the company hopes to continue using technology, innovative draws, and sustained marketing efforts to retain this remarkable growth trajectory.
