ZEAL Network (TIMA) H1 2024 earnings summary

Executive summary

• Achieved record new customer acquisition in H1 2024, driven by a favorable jackpot environment and improved marketing efficiency.

• Revenue grew 40% year-over-year in H1 2024, with EBITDA up 46% and margin expansion to 13.6%.

• Net profit after tax surged by 561% to €36.9 million, supported by higher EBITDA and initial recognition of deferred tax assets.

• Launched a new charity lottery, the Dream House Raffle, in August 2024, targeting new customer segments.

Financial highlights

• Revenue rose to €76.8 million in H1 2024 from €54.8 million in H1 2023 (+40%), with Q2 revenue growth accelerating to 45%.

• EBITDA reached €20.1 million, up 46% year-over-year; Q2 EBITDA up 141% year-over-year.

• Lotteries segment revenue grew 33%, driven by 23% billings growth and margin expansion.

• New games business contributed €4.5 million in H1 revenue; over 100 games live, including 10 higher-margin instant win games.

• Gross billings margin improved to 13.6% in H1 2024, up from 12.5% last year, driven by price optimization and product mix.

Outlook and guidance

• 2024 revenue expected between €140–150 million, representing 21–29% growth over 2023.

• EBITDA guidance for 2024 remains €38–42 million, up 16–28% year-over-year, excluding transaction costs.

• Midterm revenue growth expected in the mid to high teens CAGR through 2026.

• Billings margin anticipated to exceed 15% in H2 2024.

• Continued investment in marketing (€40–45 million for German brokerage business) and games business growth.