ZEAL Network (TIMA) H1 2024 earnings summary

Executive summary

• Revenue grew 40% year-over-year to €76.8 million in H1 2024, driven by strong lottery and games growth, record new customer acquisition, and favorable jackpot environment.

• EBITDA increased 46% to €20.1 million, reflecting operational leverage and margin improvements.

• Net profit after tax surged 561% to €36.9 million, supported by higher EBITDA and initial recognition of deferred tax assets.

• 592,000 new customers were acquired in Germany, up 70%, with cost per lead down 26%.

• Launched the Dream House Raffle charity lottery in August 2024, targeting new customer segments and supporting DKMS and other causes.

Financial highlights

• Revenue rose to €76.8 million in H1 2024 from €54.8 million in H1 2023 (+40%), with Q2 revenue growth accelerating to 45%.

• Lotteries segment revenue grew 33%, driven by 23% billings growth and margin expansion; billings from lotteries reached €507.1 million.

• Games revenue reached €4.5 million, with over 100 games live and margin at 7.3%.

• EBITDA rose 46% to €20.1 million for H1, with Q2 EBITDA up 141% year-over-year.

• Gross margin improved to 13.6% (lotteries), up from 12.5% last year.

Outlook and guidance

• 2024 revenue expected between €140–150 million, representing 21–29% growth over 2023.

• EBITDA guidance for 2024 remains €38–42 million, up 16–28% year-over-year.

• Acceleration of revenue growth expected in H2 2024 from margin optimization and new product launches.

• Billings margin anticipated to exceed 15% in H2 2024.

• Midterm revenue growth expected in the mid to high teens through 2026.