ZEAL Network (TIMA) Q3 2025 earnings summary

Executive summary

• Revenue increased by 34% year-over-year to €162.6m for the first nine months of 2025, driven by strong growth in the Germany segment and a significant rise in active lottery customers, despite a weak jackpot environment with only four peaks.

• EBITDA rose 55% to €54.1m, reflecting improved operating efficiency and higher gross margins.

• Customer base expanded rapidly, with 1,572k monthly active users (up 17%) and 879k new customers acquired.

• FY 2025 guidance was raised, reflecting improved profitability and business momentum.

Financial highlights

• Revenue rose 34.5% year-over-year to €162.6m, with lotteries up 35.7% and games up 51.1%.

• EBITDA margin improved to 33.3% from 28.9% year-over-year.

• Gross margin increased to 17.5%, attributed to price optimization and product mix improvements.

• Marketing spend increased by 35% year-over-year, supporting customer acquisition and future growth.

• Net profit after tax declined 23.5% to €33.9m due to a one-off deferred tax asset in the prior year.

Outlook and guidance

• FY 2025 revenue guidance raised to €205–215m (from €195–205m), and EBITDA to €63–68m (from €55–60m), assuming an average jackpot environment.

• Management expects to end the year at the upper end of guidance, with flexibility to invest further in marketing if opportunities arise.

• Marketing investment in Germany to expand to €60–70m in 2025.

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

• Plans to increase the frequency of Traumhausverlosung house raffles in the coming year due to strong demand.