Key points:
- Q1 2025 revenue rose 42% year-on-year to €51.1m
- EBITDA surged 89% to €17.7m; EBIT more than doubled to €15.6m
- Online lottery gross margin improved from 13.0% to 17.1%
Zeal reported a 42% year-on-year rise in group revenue to €51.1m ($58m) for the first quarter of 2025. The growth was driven by its core online lottery business, which saw a 41% increase in revenue to €45.2m despite an absence of major jackpots in the quarter.
The number of active customers rose 13% to 1.51m, supported by successful marketing campaigns and product improvements.
Zeal also recorded 247,000 new customer registrations in the quarter – a record for a period without high jackpot activity.
However, the cost per lead rose 47% to €48.5 as the company tested new acquisition strategies and channels.
The group’s EBITDA nearly doubled, increasing 89% to €17.7m, while EBIT rose to €15.6m, up from €7.5m in Q1 2024.
Good to know: The company cited efficiency gains and strong revenue momentum as key factors in offsetting rising costs
Operating cash flow climbed to €184.4m, a 67% increase from €110.1m the year prior.
Gross margin in the lottery segment improved significantly to 17.1%, up from 13.0%, following a price adjustment and favourable product mix. Total lottery billings edged up 7% to €246.7m.
Revenue from Zeal’s growing games division reached €3.4m, up 56%, supported by an expanded B2C portfolio now exceeding 400 titles.
Despite a 21% increase in operating expenses to €25.4m – driven by external staffing, software costs and advisory services – the company maintained its profitability trajectory.
The Q1 performance builds on a record-setting 2024, where Zeal reported a 62% rise in full-year revenue to €188.2m and an 88% increase in EBITDA. Last year also marked the first time the company surpassed €1bn in annual lottery billings and more than one new customer sign-ups.
With a strong start to 2025 and improved margins across its core operations, Zeal has reaffirmed its growth outlook for the year and continues to target €195–205m in full-year revenue.
