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Germany’s ZEAL Network SE has posted another strong quarter, reporting a 34% year-on-year revenue increase in Q3 2025.
The online lottery operator credits the jump to expanding customer engagement, record results from its charity lottery, and fast-growing games revenue.
Strong results across core segments
Lottery sales remain the backbone of ZEAL’s business, while games add new energy.
Group revenue rose to €162.6m, up from €121.4m a year earlier, while EBITDA climbed 55% to €54.1m. The company also improved its gross margin to 17.5%, compared to 14.5% last year, thanks to pricing adjustments and a more profitable product mix.
Chief Financial Officer Andrea Behrendt said the results reflect both strategic focus and operational strength. She noted:
“We achieved strong revenue growth in all business areas with great operational efficiency, which is reflected in a significantly increased EBITDA margin.”
Lottery business continues to lead
Rising player numbers and creative campaigns drive ZEAL’s core performance.
Lottery revenue grew 36% year-on-year, supported by a 17% increase in monthly active customers, now averaging 1.57 million. The company’s charity lottery, Traumhausverlosung (Dream House Raffle), continued to capture public attention, achieving record results in its fourth campaign since debuting in 2024.
A fifth edition of the raffle, featuring a Bavarian Forest property, is already underway. ZEAL added 879,000 new customers in the first nine months of 2025, representing 9% year-on-year growth as marketing spend rose 35% to support expansion.
The company’s games division also delivered a standout performance, generating €10.3m in revenue, up 51% from last year’s €6.8m.
Upgraded guidance for 2025
Strong margins and consistent demand lead to higher forecasts for the year.
Following its solid Q3, ZEAL raised its full-year guidance, now expecting total revenue between €205m and €215m, up from the previous range of €195m to €205m. EBITDA is forecast to reach €63m–€68m, compared with the earlier target of €55m–€60m.
The company said its outlook reflects growing demand for online lottery products, strong brand engagement through its charity initiatives, and continued diversification in games.
Leadership transition on the horizon
New leadership aims to build on a strong foundation of growth and innovation.
In July, ZEAL announced that Dr Stefan Tweraser would take over as Chief Executive Officer, officially assuming the role in September 2025. The transition comes at a pivotal moment for the company as it continues to scale its operations and strengthen customer relationships across Germany.
ZEAL’s next challenge will be maintaining its upward trajectory amid market fluctuations and jackpot variability. But with revenue up, margins stronger, and engagement rising, the company enters the final quarter of the year with clear momentum and a growing sense of confidence.
Can ZEAL keep the winning streak going as competition in Europe’s online lottery market intensifies?
Source: SIGMA
