Zeal Network SE’s first-quarter financial results for 2024 reflect a robust performance, marked by significant growth across various metrics.
Overview of Financial Performance:
In Q1 2024, Zeal Network SE demonstrated substantial growth across its key financial indicators. Lottery billings surged by 22% to €246.3 million, underlining the company’s strength in this segment. Group revenue experienced a notable uptick of 35%, reaching €36.1 million compared to €26.7 million in Q1 2023. Despite increased investment, adjusted EBITDA saw a modest 1% rise to €9.4 million.
Lottery Business Performance:
The primary driver of Zeal’s stellar results lies within its lottery business, which witnessed a remarkable 28% surge in revenue, reaching €32 million. This growth can be attributed to a 21% monthly increase in active lottery customers, contributing significantly to the rise in billing figures. Sebastian Bielski, Zeal’s CFO, expressed satisfaction with the performance, highlighting the company’s strong revenue growth and resilience in its core lottery brokerage business.
Games Business Expansion:
Zeal’s games business, launched recently, also displayed promising growth, with Q1 revenue increasing by 20% to €2.2 million compared to Q4 2023. This expansion underscores Zeal’s diversification efforts and its ability to capitalize on emerging opportunities in the gaming sector.
Marketing Strategy Impact:
Despite doubling marketing expenses and facing a negative one-off effect from a major win in its charity lottery Deutsche Traumhauslotterie, Zeal managed to achieve EBITDA slightly above the previous year’s level. This resilience underscores the effectiveness of Zeal’s marketing strategies and its ability to navigate challenges while sustaining growth.
Yearly Performance Comparison:
The Q1 2024 results build on Zeal’s FY2023 performance, which saw a 10% increase in revenue. This consistent growth trajectory reflects Zeal’s strong market position and its ability to deliver value to stakeholders over time.
Zeal Network SE’s first-quarter financial results for 2024 demonstrate robust growth across its lottery and games businesses. With a solid revenue increase, expanding customer base, and effective marketing strategies, Zeal is well-positioned for continued success in the dynamic gaming industry.