Overview of Q1 Results#
ZEAL Network SE, a German lottery operator, announced its first quarter results, revealing a modest growth in billings of 1% to €268 million. This growth comes despite a lackluster performance in jackpot offerings during the period.
Customer Base Expansion#
The company reported a 5% increase in its active customer base, reaching 1,575,000 compared to 1,507,000 in the same quarter last year. This growth was largely attributed to increased spending on marketing efforts aimed at attracting new players.
Financial Performance#
Revenue for the quarter was €54.3 million, marking a 6% rise from the previous year and aligning closely with analyst expectations of €54.6 million. ZEAL also improved its lottery business take rate, which is the percentage of revenue retained from ticket sales, to 17.8%, up from 17.1% in the same quarter last year. However, the company's EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization, was €15.5 million, reflecting a 13% decline from the prior year, although it did exceed the consensus estimate of €15.3 million.
Future Projections#
Looking ahead, ZEAL has confirmed its guidance for 2026, projecting revenue between €250 million and €260 million and EBITDA between €70 million and €75 million. Analysts are estimating revenue of €254 million and EBITDA of €73.5 million. For the years 2027 through 2029, ZEAL aims for consistent revenue growth in the mid-teens to double digits, with an EBITDA margin expected to remain above 30%.