ZEAL Raises Revenue Outlook as UK Expansion Narrows Margin

ZEAL Network SE reported on November 4, 2026, that nine-month revenue rose 22% to €198.8 million after UK prize-draw operator SevenCanyon was consolidated for the first time, prompting a higher full-year revenue outlook. The expansion also brought increased marketing and acquisition costs, leaving net profit lower and narrowing the group’s earnings margin.

The company now expects 2026 revenue of €270–280 million, up from its previous €250–260 million forecast, following SevenCanyon’s initial consolidation and the finalisation of its revenue presentation under IFRS. The EBITDA forecast remains €70–75 million. ZEAL defines EBITDA as earnings before depreciation, amortisation, financial result, the share of results from associates and taxes. That profit outlook assumes a normal jackpot environment in Germany and includes expected non-recurring acquisition expenses in the mid-single-digit millions of euros.

The quarterly statement covering January 1 through September 30, 2026, shows EBITDA increased 9% to €58.7 million from €54.1 million, well behind the pace of revenue growth. The EBITDA margin fell to 29.6% from 33.3%, which ZEAL attributed mainly to higher marketing investment and consulting expenses connected with SevenCanyon.

Net profit fell 5% to €32.2 million from €33.9 million. ZEAL linked the decline primarily to a €4.1 million positive deferred-tax remeasurement in the third quarter of 2025, a prior-year benefit that helps explain why higher EBITDA did not produce a higher bottom line.

Core Lotteries Still Drive Growth

Lotteries segment revenue increased 16% to €170.8 million, while lottery billings rose 10% to €915.1 million. Average monthly active lottery customers grew 7% to 1.678 million, and the lottery gross margin improved to 18.3% from 17.5%. ZEAL registered 1.007 million new customers in Germany, 15% more than in the first nine months of 2025. Lotteries was the main driver of group growth, so the stronger revenue was not simply a consolidation effect.

Those gains came despite a subdued Eurojackpot environment. The average jackpot fell to €40.8 million from €50.0 million, and the €120 million maximum was reached twice in May, compared with four times in 2025. LOTTO 6aus49 moved in the opposite direction: its average jackpot rose to €31.6 million from €8.6 million after reaching its €50 million maximum for the first time since that maximum was raised in November 2023.

Other products also expanded. Games revenue rose 18% to €12.1 million, with average monthly active users up 27% to 35,000 and billings up 17% to €160.3 million, although average revenue per user fell 7% to €38.21. The first Dream Car Raffle season ended in the third quarter of 2026 and a second began, while four Dream House Raffle houses were drawn during the nine months with average billings of €9 million.

SevenCanyon’s Contribution Comes With Costs

ZEAL acquired the remaining 96.5% of SevenCanyon on July 9, 2026, taking ownership to 100% and entering the UK market for digital prize draws. The July acquisition announcement priced the stake at approximately £33.8 million in cash, subject to subsequent adjustments, plus up to approximately £4.8 million over six months, contingent on defined financial targets. SevenCanyon contributed €10.5 million of revenue and €1.4 million of EBITDA in the consolidated nine-month figures, helping lift Other segment revenue 241% to €15.8 million.

The acquisition’s contribution sits beside a sharp increase in expenses. Group marketing expenses rose 35% to €67.4 million, including €4.8 million attributable to SevenCanyon, as ZEAL also invested in customer acquisition and the Dream Car Raffle launch. Indirect operating expenses increased 61% to €25.9 million, with consulting expenses up €4.9 million mainly as a one-off acquisition effect. The acquisition generated a €40.9 million cash outflow after acquired cash, while a new loan provided a net financing inflow of €39.8 million.

Provisionally identified acquisition-related intangible assets totaled €25.8 million and goodwill increased by €38.8 million at September 30, 2026. The purchase-price allocation remains provisional because completion accounts are outstanding, leaving acquisition accounting and operational and financial integration unfinished.

ZEAL has therefore broadened its revenue base, but the first consolidated figures also show the cost of doing so. With integration continuing and completion accounts still open, the key issue is how efficiently the UK operation can add earnings within a group whose growth is still led by its German lottery business.