Zeal H1 revenue surges 31% despite weak jackpot cycle

Summary

Zeal delivered strong first-half results despite a subdued jackpot cycle, driven mainly by customer acquisition and margin improvements. Group revenue climbed 32% to €101.5m and EBITDA surged 76% to €35.4m year‑on‑year. Lottery billings rose 4% to €527.3m and lottery revenue increased 34% to €91m thanks to a favourable product mix and a prior price rise. Zeal’s iGaming segment also grew, with revenue up 49% to €6.7m and its B2C games library expanding beyond 480 titles.

The group added 499,000 new customers in H1 and lifted the average number of active monthly customers by 12% to 1.51 million. Operating costs increased as Zeal invested in growth — marketing spend rose to €29.1m and acquisition cost per new customer climbed to €46.93 — but efficiency gains and scalability saw profitability rise faster than revenue (EBIT nearly doubled to €31.1m).

Key Points

• Group revenue up 32% to €101.5m in H1 2025; EBITDA up 76% to €35.4m.
• Lottery billings increased 4% to €527.3m despite lower average jackpots for LOTTO 6aus49 and Eurojackpot.
• Lottery revenue rose 34% to €91m, helped by a 3.8pp gross margin improvement to 17.3%.
• Active monthly customers up 12% to 1.51 million; 499,000 new customers added in the period.
• iGaming revenue grew 49% to €6.7m; B2C games portfolio now exceeds 480 titles.
• Marketing spend increased 14% to €29.1m; acquisition cost per new customer rose 41% to €46.93.
• Indirect operating costs +20% to €10.4m; direct operating costs +14% to €9.8m; other operating expenses +15% to €49.4m.
• Board changes: CEO Helmut Becker to step down (remains consultant until early 2026); Stefan Tweraser to succeed as CEO from 15 Sept; Carola Gräfin von Schmettow appointed chairwoman.

Context and relevance

Zeal’s results show how an online lottery operator can offset a weak jackpot environment by investing in marketing, product breadth and pricing. The numbers matter to investors and competitors: higher margins and rapid customer growth suggest Zeal’s model scales well, even when headline jackpots are low. The rise in acquisition costs highlights that growth is purchase‑driven rather than purely organic, signalling where future margins could be sensitive to marketing efficiency.

Why should I read this?

Short version: Zeal beat a lousy jackpot run by doubling down on growth — we read the numbers so you don’t have to. If you track lottery operators, margins, or industry M&A/strategy, this spells out who’s gaining share and why. It’s a tidy snapshot of how marketing, pricing and product mix can push profit even when luck isn’t on players’ side.