ZEAL Network (TIMA) H2 2025 earnings summary

Executive summary

• Achieved strong double-digit revenue growth and significant gross margin improvement in 2025, with continued expansion of the customer base and business model diversification, including scaling proprietary lottery products and the Games segment.

• Raised over €375 million for charitable causes in FY 2025 and delivered on all three strategic objectives: core business profitability, scaling Traumhausverlosung/Dream House Raffle, and accelerating games growth.

• Surpassed ambitious targets in all business segments, with notable growth in customer acquisition and product diversification.

Financial highlights

• Revenue increased by 16.1% year-over-year to €218.5 million, driven by higher billings and improved gross margin.

• EBITDA rose by 11.3% to €68.8 million, reflecting efficient growth and strong operational performance.

• Lottery billings grew by 2% to €1,100.5 million, with 1,558 thousand average active customers spending €58.88 each.

• Games revenue increased by 46% to €14.4 million, with the portfolio expanding to over 650 titles.

• Gross margin from lotteries improved to 17.7%, supported by pricing actions and product mix improvements.

Outlook and guidance

• For 2026, targeting revenues of €250–260 million and EBITDA of €70–75 million, assuming average jackpot conditions.

• Marketing investment planned at €85–95 million, up to €25 million higher than 2025, within efficiency guardrails.

• Midterm guidance aims for double-digit annual revenue growth in the mid-teens and maintaining EBITDA margin above 30%.

• Traumhausverlosung/Dream House Raffle to scale to at least six raffles in 2026, targeting over 50% billings growth year-over-year.

• Games segment expected to grow over 20% year-over-year in 2026.