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ZEAL Network SE continued to grow in the first half 2024, with revenue and EBITDA both increasing. The group revenue increased by 40% to EUR 76.8 Million (2023: EUR 55.8 Million). EBITDA grew even stronger by 46 percent, to EUR 20 million (2023: EUR 13 million ).
“Our excellent operational performance is reflected in the very strong growth of revenue and EBITDA. We are especially pleased to have acquired over half a billion new customers since the start of the year. This half-year, the acquisition of new clients has been not only exceptionally successful but also extremely efficient due to the reduction in acquisition cost per new registered customer. “We are therefore benefiting from the constant investment in brand-development in recent years,” said Sebastian Bielski CFO at ZEAL.
Revenues in core businesses grow by 33 percent
The significant revenue growth of ZEAL in the first six months of the year was primarily due the the development of its lottery business. The billings increased 23 percent, to EUR507.1million, and the revenue rose 33 percent, to EUR68.0million (2023: EUR51.2million). The increase in billings can be attributed to a 21 percent rise in the number of average active customers (1353 thousand), and a 2 percent rise in the average billings for each active user, which now stands at EUR 62.48. ZEAL also improved its gross margins in the lottery business from 12.5 percent in 2023 to 13.4 percent in 2019 thanks to a new product mix and margin optimizations.
The Games business, launched in June of 2023, has continued to grow in the second quarter 2024, compared to the previous quarter, with solid revenue growth.
Strong results thanks to customer growth and lower acquisition cost
ZEAL’s customer base grew significantly in the first half 2024, largely due to a favorable jackpot situation. The number of new customers registered increased by 70% to 592 000 (2023: 349 thousands), which is the second highest figure in ZEAL history. The acquisition costs per new registered customer (cost per lead or CPL) decreased by 26 percent on an annual basis to EUR 33.20. (2023: EUR 44.09). Marketing expenses rose by 28 percent on an annual basis to EUR 25.5 millions (2023: EUR 20 million) due to the strategic decision of the company to take advantage of the positive jackpot situation during the first half year in order to accelerate customer growth. Direct operating costs increased by EUR 8.6 millions (2023: EUR 5.8 million) and other operating expenses rose by EUR 42.8million (2023: EUR 31.16 million ).).
EBITDA, at EUR 20,1 million, was 46 percent more than the same period in the previous fiscal year (2023: EUR 13,8 million). This is due to a significant increase in sales and cost-efficiency compared to last year. EBIT was EUR 16.1 millions, 73 percent higher than the previous year (2023: EUR 9 3 million).
Due the positive results of the first half in 2024, ZEAL confirms its forecast from March 20, 2024.
Zeal launches first house lottery in Germany
As ZEAL announced a few weeks ago, a new charity lottery, Traumhausverlosung, will be launched on the 01 August 2024. This is the first raffle where participants can win a fully-furnished dream home. The raffle of each house will take place regardless of how many participants there are. The participants also have the opportunity to win a variety of additional prizes.
