ZEAL Network (TIMA) Q1 2025 earnings summary

Executive summary

• Revenue grew 42% year-over-year to €51.1m, driven by strong lottery and games performance, with EBITDA nearly doubling to €17.7m and margin exceeding 34%.

• Net profit declined 53% to €9.8m due to a one-off deferred tax asset in the prior year.

• Record new customer acquisition in a quarter without peak jackpots, with monthly active users up 13% to 1.5 million.

• Strategic focus on core brokerage, Dreamhouse Raffle, and games business, all showing progress.

• Gross margin for lotteries exceeded 17% due to improved product mix and price optimization.

Financial highlights

• Lotteries revenue rose 41.5% to €45.2m; games revenue up 56% to €3.4m year-over-year, with over 400 games online.

• EBITDA margin improved to 34.7% from 26.1% year-over-year.

• Billings for lotteries increased 7% to €264.7m; average billings per user fell 5% to €58.57.

• Cash and cash equivalents at period end: €112.5m; equity increased to €247.8m.

• Earnings per share: €0.47, down from €0.96 in Q1 2024.

Outlook and guidance

• Full-year 2025 guidance confirmed: revenue €195–205m, EBITDA €55–60m (excluding exceptional costs), with continued investment in marketing and new business growth.

• No changes to risk and opportunity assessment or expected development compared to the 2024 Group Management Report.

• Mid-term targets (2026–2028) include double-digit annual revenue growth and expanding EBITDA margin.