Zeal Network has reported a revenue increase of 41% year on year (YoY) for the first nine months of 2024 to €121m (£100.8m) as the German firm “significantly expanded” its customer base.
Revenue was up from €86m for the same period last year, with EBITDA rising significantly by 51% to €35m.
The lottery operator put the strong nine months down to a large increase in the number of newly registered customers, with the metric leaping 56% YoY to 807,000.
In Q3 alone, Zeal reported a 28% spike in new customer acquisition.
Lottery revenue jumped 35% YoY to €107.6m, while billings grew 17% to €743.1m. Zeal said the spikes directly correlated to 17% rise in the average number of monthly active users per month to 1.3 million.
Average billings per user (ABPU) remained flat YoY, increasing to €61.31 against €61.02 in the same period in 2023. Cost per lead (CPL) for lottery operations was down 25% YoY from €46.81 to €35.54.
Zeal’s igaming revenue soared from €1.2m for the first nine months of 2023 to €6.8m.
Gaming ABPU stood at €525.20, with Zeal expecting revenue of €9m in 2024. The platform has more than 200 games live currently, with 18 instant win titles.
The firm expanded into the igaming vertical last year.
Highlights for Q3 included the launch of its first dream house raffle, Traumhausverlosung, with the first house raffled on 4 November.
The business noted that demand during the first draw period “was well above expectations”.
Additionally, Zeal announced it will repurchase up to 568,181 shares, representing 2.62% of the group’s stock, at a price of €44 per share?.
The share purchase offer has a volume of up to €25m and will be financed by using existing credit lines. The process will run from 18-29 November 2024, which remains subject to an extension.
On the back of a strong nine months, Zeal Network raised its revenue guidance for full-year 2024 from between €140m and €150m to between €158m to €168m.
The company added it expects EBITDA to fall between €42m and €46m after previously being set between €38m and €42m.
Zeal CFO, Sebastian Bielski, said: “We are proud of our excellent business development since the beginning of the year, which is reflected in significant growth in revenue, EBITDA and new customer acquisition.
“The efficiency gains and scale effects of our business model are reflected in a disproportionately high increase in profitability.
“Although the jackpot situation in the third quarter was less favourable than at the beginning of the year, we were able to significantly increase lottery revenue by 42% compared to the same period last year.”
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