Quarterly Gambling Revenue Surges for Zeal, with Gaming Segment Showing a 55% Spike
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Holy shit, Zeal Network just dropped a massive 42% year-on-year rise in revenue, kicking off 2025 with a bang! This badass haul clocks in at a cool €51.1 million ($58.1 million), primarily driven by the ballsy moves in their lottery division.
The Q1 announcement on Wednesday screams victory, with this revenue figure smashing the €36.1 million reported in the same period last year. It's clear that the lottery game's on, and Zeal's killing it.
Chief Financial Officer, Andrea Behrendt, who stepped up to the plate in April, is all smiles. Despite no peak jackpots during the quarter, she's hyped about the lottery's performance and the impressive revenue climb within their games division.
Behrendt, in her badass wisdom, credits the lottery's performance to some sick marketing moves and the successful acquisition of new customers, creating a monster 133% increase in the average number of active users per month (MAU) to 1.5 million. That's one hell of a growth spurt!
As for the games segment, they ain't falling behind. Revenue rocketed up 54.6% year-on-year to €3.4 million, with billings soaring 45.4% to €45.5 million. Call it a vicious cycle—but the increase in customer payments fueled a 22% spike in Average Monthly Billings Per User (ABPU).
Zeal's also flexing its muscles in the B2B segment with some fresh partnerships. Their hook-ups with names like Tipico and Gamomat will undoubtedly broaden their portfolio and reach even more players.
Alright, now let's talk costs. Operating expenses increased across the board, but the surge in revenue meant EBITDA shot up 88.3% year-on-year to €17.7 million. Taxes, however, throw a wrench in the works. What happened last year, with the €14.2 million squeeze-out from Lotto24, can't be repeated this year. Zeal's taxes this year amounted to a mere €4.2 million, leading to a 53.6% drop in bottom-line net profit compared to Q1 2024. But hey, a dip like that is just a minor setback for a company as badass as Zeal Network!
Insights:
- Lottery revenue rose by 41% to €45.2 million, with a significant increase in the gross margin to 17.1%.
- The number of active customers increased by 133%, and 13% in the lottery sector specifically.
- Billings increased slightly from €246.3 million to €246.7 million, but the rise in the gross margin was crucial in enhancing revenue.
- The games division also saw an overall increase in revenue, though specific figures for the segment aren't detailed.
- Zeal Network's lottery division, fueled by strategic marketing and new customer acquisitions, experienced a staggering 133% increase in the average number of active users per month (MAU), driving a significant 41% increase in lottery revenue to €45.2 million.
- Amidst the surge in revenue, the average monthly billings per user (ABPU) in the games segment saw a 22% spike due to an increase in customer payments.
- The casino-and-gambling sector, including casino-games and lotteries, will likely expand further with Zeal Network's fresh partnerships with Tipico and Gamomat, broadening their reach and portfolio.
- While operating expenses increased and taxes dropped compared to Q1 2024, the significant rise in revenue led to an impressive 88.3% year-on-year increase in EBITDA, despite a 53.6% decrease in bottom-line net profit due to changed tax circumstances.
