A few days ago, the German e-commerce group ZEAL Network SE once again reported extremely pleasing consolidated sales. The online provider of lottery products increased its turnover by an impressive 40% in the first half of 2024 alone. But why is ZEAL currently enjoying such good business figures?

At the end of May this year, we at GambleJoe reported that lottery broker ZEAL Network had reported record sales for the first quarter. The positive trend seems to have continued in the second quarter, with ZEAL achieving overall sales growth of 40% in the first half of 2024. From this impressive growth, it can be concluded that the business of brokering lottery products online currently appears to be doing very well in Germany.

Lottery broker generated a profit of around 20 million euros in the first half of the year

A look at ZEAL's EBITA is particularly impressive. In the first six months of this year, the company managed to increase its profit before taxes, depreciation and amortisation to 20.1 million euros (+ 46%).

Overall, ZEAL Network SE generated revenue of around 76.8 million euros in the first half of 2024. This represents an increase of 40% compared to the same period last year. In the first half of 2023, consolidated revenue totalled 54.8 million euros.

The main reason for this enormous success is the high number of new customers in the period under review. According to ZEAL, it was able to generate around 592,000 new customers in the first half of 2024 alone (+70%). According to the company, it still had 1.2 million customers as of December 2023 - now it has around 1.7 million.

The fact that the acquisition costs per new customer have been significantly reduced was particularly pleasing for the company's management. Specifically, ZEAL ‘paid’ 33.20 euros per new customer in the first half of 2024. In comparison: in the same period of the previous year, the figure was still EUR 45.09 per customer.

ZEAL Network SE, based in Hamburg, was still called Tipp24 SE until a few years ago. The company was originally founded in 1999 and ZEAL most recently generated revenue of EUR 116.1 million in 2023, primarily through the brokerage of lottery products. The group of companies currently employs just under 200 people. ZEAL Network SE is present on the market with the Tipp24, Lotto24, ZEAL Instant Games and Deutsche Traumhauslotterie brands, among others.

ZEAL Network's share price rose by just under 10% to EUR 37.30 last month. Over a five-year period, the company's share price has even risen by over 85% (as at 11 August 2024).

Back in May last year, we reported that Lotto24 and Tipp24 had received a German licence for virtual slot games. Unfortunately, ZEAL did not provide any information on the development of online slot revenues in its current half-year report.

ZEAL currently expects the positive trend in consolidated revenue to continue in the coming quarters.

Image source: https://pixabay.com/de/photos/geld-geldscheine-münzen-euro-2991386/

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