ZEAL Network (TIMA) H1 2025 earnings summary

Executive summary

• Revenue increased by 32% year-over-year to €101.5m in H1 2025, with EBITDA up 76% to €35.4m, reflecting strong profitable growth and improved gross margin despite a weak jackpot environment.

• Customer base expanded to 1.5 million monthly active users, up 12% year-over-year, with record new customer acquisition of 499,000 in H1.

• Net profit after tax declined 47% to €19.5m due to prior year’s deferred tax asset recognition, despite improved operating performance.

• Leadership transition: Carola von Schmettow elected Chairwoman, Stefan Tweraser to become CEO in September 2025.

• Strategic initiatives advanced in lottery brokerage, Traumhausverlosung, and games business.

Financial highlights

• Lotteries revenue grew 33.8% to €91.0m; games revenue up 49% to €6.7m year-over-year.

• EBITDA margin improved to 34.8% from 26.2% in H1 2024.

• Gross margin for lotteries reached 17.3%, supported by price increases and product mix optimization.

• Marketing spend rose 14% year-over-year, with cost per lead at €46.9 overall and €41.7 for lottery brokerage.

• EBIT nearly doubled to €31.1m, up 92.5% year-over-year.

Outlook and guidance

• Full-year 2025 revenue guidance set at €195–205m, with EBITDA expected at €55–60m, reaffirmed and unchanged from previous guidance.

• Marketing investment in Germany to expand to €60–70m in 2025, with H2 spend expected to be higher.

• Mid-term (2026–2028) targets: double-digit annual revenue growth in the mid-teens and expanding EBITDA margin.