Zeal Network is considering investments in additional social lotteries and possible prize draw opportunities outside of Germany, company executives told analysts this morning during the company’s FY2025 earnings call.
New CEO for the German lottery operator, Dr Stefan Tweraser said Zeal had a “strong war chest” for investment opportunities and it would reveal further plans later in 2026.
Overall the company results reported revenue growth of 16% across the entire business, to €218 million. The vast majority of this (89%) was attributed to its lotteries business, where revenue also increased 16% year-on-year.
Revenue for the period was 2% higher than the €205 million to €215 million forecasted in September. EBITDA hit €68.8 million, reaching the top-end of the previously forecasted €63 million to €68 million.
Gaming revenue was up 46% during the period. Executives praised Zeal’s increased marketing spend, which was up 21% over the year. This is expected to continue to increase in 2026, CFO Andrea Behrendt told analysts, as Zeal was “doubling down on a playbook on how to invest in no-jackpot environments”.
Marketing spend is expected to have a higher growth rate than revenue in 2026. Behrendt explained that this spend had paid off and generated significant shareholder value for the company. The increase in 2025 additional digital marketing channels led the company to “excel in our approach to partnerships”, the CFO said.
New customers grew despite weak jackpot environment
A focal point for the FY25 earnings report was Zeal’s growth across its customer base, during what was described as a “weak jackpot environment” in 2025.
New registered customers across its lottery business grew 7% during the 12-month period to 1.2 million. Overally monthly active users across lotteries (MAUs) grew 8% to 1.6 million over the previous year.
Within its gaming business, MAUs reached 30,000 (up 36%) in FY25. Behrendt said the period proved that Zeal could increase customer acquisition even in re-jackpot phases. In lotteries, she said customer acquisition had become less dependent on jackpots and therefore more stable.
However, due to the weaker jackpot environment in 2025, cost per lead did increase 32% across lotteries.
When asked about its prize draw business and local competition in Germany, Tweraser said Zeal owned the “dream house raffle” category and any competition was nowhere near Zeal’s scale, or ability to generate customer growth or benefit the offline-to-online movement of lotteries.
It expects to increase the number of houses it raffles via its Traumhausverlosung business to up to one house per month in future.
As Germany continues to navigate a review of Interstate Treaty gambling regulations, one analyst asked whether Zeal expected the regulatory outlook to shift in the market in future. Tweraser said no significant changes were anticipated and the operator is in close contact with the GGL.
Zeal expects revenue uptick of up to 19% in 2026
Zeal expects revenue in the range of €250 million to €260 million for the 2026 financial year, which would mark an up-to-19% increase on 2025. Meanwhile EBITDA is expected to be in the range of €70 million to €75 million and already includes increased investments compared to the previous year for further diversification of the company’s offerings.
Nicole Macedo
Nicole cut her teeth in local news rooms at home in Gibraltar, and helped to establish the peninsula’s first online-only broadcaster.
Original article: https://igamingbusiness.com/finance/full-year-results/zeal-fy25-prize-draw-social-lottery-investment/
