ZEAL Maintains 2026 Outlook After First-Quarter Revenue Reaches €54.3 Million

(AsiaGameHub) –   ZEAL Network SE maintained its 2026 forecast following a quarter marked by rising revenue, reduced profit, and higher expenditures in its games and charity lottery segments.

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Good to Know

• ZEAL announced Q1 2026 revenue of €54.3 million, a 6% increase from the €51.1 million recorded in the same period the previous year.
• EBITDA decreased to €15.5 million due to the group’s increased spending on marketing, personnel, game development, and the expansion of its charity lotteries.
• The company’s full-year guidance remains unchanged, targeting revenue between €250 million and €260 million, and EBITDA ranging from €70 million to €75 million.

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ZEAL Maintains Guidance Amid Growth in Games and Charity Lotteries

ZEAL continues to identify significant growth potential in the German online lottery market. The group calculates that online penetration stands at around 29%, which is lower than in other European markets. This creates opportunities for Lotto24 and other ZEAL brands to gain more players, even during periods of low jackpot activity.

During Q1, average monthly active users increased by 5% to 1.575 million. New sign-ups rose by 11% to 274,000, despite the absence of peak jackpot draws for either Lotto 6aus49 or Eurojackpot in the quarter.

The lottery segment continued to be the primary revenue driver. Segment revenue grew by 5% to €48.7 million, while billings edged up by 1% to €268 million. A higher gross margin of 17.8% (versus 17.1% in Q1 2025) helped mitigate the impact of weaker jackpot scenarios.

The games segment also contributed to revenue growth, generating €3.9 million – a 14% rise from the €3.4 million in the prior year’s Q1. ZEAL’s B2C games portfolio now boasts over 740 titles, having added approximately 90 new titles since the end of 2025.

Profit declined, but ZEAL attributed this drop to planned investments. Marketing costs went up by 13%, and personnel expenses rose by 21%. Net profit after tax decreased to €8.3 million, a drop of roughly 15.5%. The group also noted that Q1 2025 was a strong period, with EBITDA having nearly doubled.

Andrea Behrendt, chief financial officer of ZEAL, said:

“The first quarter of 2026 demonstrates that we are steadily implementing our strategy even in a challenging jackpot environment: our core business is expanding, and we have continued to invest in diversifying our business model.

“The slightly reduced EBITDA compared to last year is mainly a result of these initiatives.”

Following the end of the quarter, ZEAL introduced another charity lottery. Traumautoverlosung (Dream Car Raffle) launched on 14 April 2026 as the group’s third proprietary charity lottery in Germany. The product is operated by Dreamify gGmbH, a fully owned non-profit subsidiary of ZEAL Group, with Lotto24 AG managing marketing and distribution.

The inaugural draw features a Porsche 911 GT3 RS as the top prize. ZEAL has made 250,000 tickets available, and the draw will proceed even if all tickets are not sold. A minimum of 20% of ticket revenue will be donated to charity, with Johanniter selected as the 2026 charity partner.

ZEAL already operates Traumhausverlosung (Dream House Raffle), which launched in 2024 and generated €38.9 million in billings in its first full year. The group also runs freiheit+.

For 2026, ZEAL’s targets remain unchanged: revenue between €250 million and €260 million, and EBITDA from €70 million to €75 million. The forecast assumes average jackpot conditions for the remainder of the year and already accounts for increased spending on charity lotteries and games. For the 2027–2029 period, ZEAL is aiming for double-digit annual revenue growth and an EBITDA margin exceeding 30%.