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(AsiaGameHub) – During this morning’s FY2025 earnings call, Zeal Network executives informed analysts that the company is exploring potential investments in more social lotteries and prize draw ventures beyond Germany.
Dr Stefan Tweraser, the recently 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 gain.
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 climbed 46% for the period. Company executives commended Zeal’s 21% increase in marketing expenditure over the year. CFO Andrea Behrendt informed analysts that this upward trend is projected to persist into 2026, as Zeal 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 considerable value for shareholders. The expansion into additional digital marketing channels in 2025 enabled the company to enhance its partnership strategies, according to the CFO.
New customers grew despite weak jackpot environment
A key highlight of the FY25 earnings report was Zeal’s customer base expansion, achieved despite what was characterized as a challenging jackpot environment in 2025.
The lottery segment added 7% more registered customers during the 12-month period, totaling 1.2 million. Monthly active users (MAUs) for lotteries increased 8% year-over-year to 1.6 million.
In the gaming division, MAUs hit 30,000 in FY25, representing a 36% increase. Behrendt stated that this demonstrated Zeal’s ability to boost customer acquisition even during periods between jackpots. She added that lottery customer acquisition has grown less reliant on jackpots, resulting in greater stability.
Nevertheless, the subdued jackpot environment in 2025 caused lottery cost-per-lead to rise by 32%.
In response to questions about its prize draw operations and domestic competition in Germany, Tweraser asserted that Zeal dominates the ‘dream house raffle’ segment, with rivals falling short of its scale, customer growth generation, and capacity to drive lotteries from offline to online.
The company anticipates scaling up its Traumhausverlosung operation to raffle as many as one house per month going forward.
With Germany still undergoing a review of Interstate Treaty gambling rules, an analyst inquired whether Zeal foresees any regulatory shifts ahead. Tweraser responded that no major changes are expected and that the operator maintains close communication with the GGL.
Zeal expects revenue uptick of up to 19% in 2026
Zeal projects 2026 revenue between €250 million and €260 million, representing a potential 19% rise over 2025. EBITDA is forecasted at €70-75 million, which already incorporates higher investment levels compared to 2025 aimed at further diversifying the company’s portfolio.
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