(AsiaGameHub) – During this morning’s FY2025 earnings call, company executives informed analysts that Zeal Network is exploring potential investments in more social lotteries and prize draw opportunities beyond Germany.
Dr Stefan Tweraser, the newly appointed CEO of the German lottery operator, stated that Zeal possesses a robust financial reserve for investment purposes, with additional details to be disclosed later in 2026.
The company’s overall results showed a 16% revenue increase across all operations, reaching €218 million. The lotteries division accounted for the bulk of this figure (89%), also posting a 16% year-over-year revenue rise.
The period’s revenue exceeded the September projection of €205-215 million by 2%. EBITDA reached €68.8 million, hitting the upper limit of the earlier €63-68 million guidance.
Gaming revenue surged 46% for the period. Company executives commended Zeal’s 21% increase in marketing expenditure throughout the year. CFO Andrea Behrendt informed analysts that this trend is projected to persist into 2026, as the company intensifies its strategy for investing in environments without jackpots.
Marketing expenditure is anticipated to outpace revenue growth in 2026. Behrendt noted that this investment has yielded returns, creating substantial value for shareholders. The CFO added that the expanded digital marketing channels in 2025 enabled the company to refine its partnership strategies.
New customers grew despite weak jackpot environment
A key highlight of the FY25 earnings report was Zeal’s customer base expansion, achieved despite what executives characterized as a weak jackpot environment in 2025.
The lottery segment added 7% more registered customers during the 12-month period, totaling 1.2 million. Lottery monthly active users (MAUs) rose 8% year-over-year to 1.6 million.
The gaming division’s MAUs climbed to 30,000 in FY25, marking a 36% increase. Behrendt stated that this demonstrates Zeal’s ability to boost customer acquisition even during re-jackpot periods. She further explained that lottery customer acquisition has grown less reliant on jackpots, resulting in greater stability.
Nevertheless, the subdued jackpot environment in 2025 drove up cost per lead by 32% in the lotteries segment.
In response to questions about its prize draw operations and domestic competition in Germany, Tweraser asserted that Zeal dominates the dream house raffle market, with no rival matching its scale, capacity for driving customer growth, or support for transitioning lotteries from offline to online.
The company anticipates scaling up its Traumhausverlosung operations to raffle as many as one house per month going forward.
With Germany currently reviewing its Interstate Treaty gambling regulations, an analyst inquired about potential shifts in the regulatory landscape. Tweraser responded that no major changes are expected, noting that the operator maintains close communication with the GGL.
Zeal expects revenue uptick of up to 19% in 2026
For the 2026 fiscal year, Zeal projects revenue between €250 million and €260 million, representing a potential 19% increase over 2025. EBITDA is forecasted at €70-75 million, which already accounts for heightened investment levels relative to the prior year aimed at further diversifying the company’s product portfolio.
This article is provided by a third-party. AsiaGameHub (https://asiagamehub.com/) makes no warranties regarding its content.
AsiaGameHub delivers targeted distribution for iGaming, Casino, and eSports, connecting 3,000+ premium Asian media outlets and 80,000+ specialized influencers across ASEAN.