ZEAL Network (TIMA) H2 2024 earnings summary

Executive summary

• Achieved record results in 2024 with all-time highs in customer acquisition, billings, revenue, and EBITDA, surpassing guidance and strategic goals.

• Lottery billings exceeded €1 billion, with strong growth in both user base and billings per user.

• Launched new products, including the Traumhausverlosung charity lottery, and expanded the games portfolio to nearly 300 titles.

• Completed the squeeze-out at Lotto24, enabling tax optimization and a positive one-off tax effect.

• Gross margin improved to 15.6%, driven by product mix and a price increase implemented in June.

Financial highlights

• Revenue increased by 62% to €188.2m, with lotteries revenue up 59% and games revenue up 224%.

• EBITDA increased by 88% to €61.9m, with EBIT at €53.7m (+127%).

• Net profit after tax rose 333% to €59.4m.

• Marketing expenses rose to €56.9m, above guidance, due to high jackpot-driven customer acquisition.

• Current assets increased 78% to €164.8m; equity decreased 10% to €238.5m.

Outlook and guidance

• 2025 revenue guidance set at €195–205m, with EBITDA expected at €55–60m, assuming average jackpot conditions.

• At least 4 Traumhausverlosung draws planned, targeting €30m in billings (+250% YoY).

• Games business expected to generate €14m in revenue (+40% YoY), with portfolio expansion.

• Marketing spend planned at €60–70m, up to €50m higher than last year.

• Targeting operational margin above 16% and double-digit annual revenue growth in the mid-term (2026–2028).