ZEAL Network (TIMA) investor relations material

Executive summary

• Revenue grew 6% year-over-year to €54.3 million in Q1 2026, driven by growth in both Lotteries and Games segments, despite a weak jackpot environment.

• Active customer base increased by 5% to 1,575 thousand, with new registrations up 11%.

• Gross margin improved to 17.8%, while EBITDA declined 13% to €15.5 million due to higher marketing and personnel investments.

• Net profit after tax fell 16% to €8.3 million, reflecting increased costs and subdued jackpot environment.

• Charity lottery offerings expanded with the launch of Traumautoverlosung, strengthening diversification.

Financial highlights

• Revenue increased by 6.2% year-over-year to €54.3 million in Q1 2026.

• EBITDA declined 13% to €15.5 million, and net profit after tax fell 16% to €8.3 million.

• Gross margin in lotteries improved to 17.8%; games revenue rose 14% to €3.9 million.

• Marketing expenses increased by 13% to €17.6 million; personnel expenses rose 21% to €10.1 million.

• Lottery billings rose 1% to €268 million; lotteries revenue up 5% to €48.7 million.

Outlook and guidance

• Full-year 2026 guidance confirmed: revenue €250–260 million, EBITDA €70–75 million, with increased marketing spend and continued investment in charity lotteries and games.

• Mid-term targets include double-digit annual revenue growth and sustained EBITDA margin over 30%.

• Dividend proposal of €1.40 per share, totaling up to €30 million payout, with payment planned after AGM approval.

• Ongoing focus on diversifying the business model to reduce dependence on jackpot cycles.