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ZEAL Network reports revenue growth but lower profits in Q1 2026

A surge in users and game titles wasn't enough to offset rising costs. Can ZEAL's expansion plans turn the tide by year-end?

The image shows a paper with the text "Loterie Nationale Tirage de la Première Tranche" written on...
The image shows a paper with the text "Loterie Nationale Tirage de la Première Tranche" written on it, indicating that it is a ticket for the lottery.

ZEAL Network reports revenue growth but lower profits in Q1 2026

ZEAL Network SE has reported mixed results for the first quarter of 2026. While revenue and user engagement grew, net profits declined compared to the same period last year. The company also expanded its gaming portfolio and launched a new charity lottery in April. The company’s games segment saw a 14% revenue increase, reaching €3.9 million in Q1 2026. This growth came alongside a rise in new registrations, which climbed by 11% to 274,000. Average monthly active users also grew by 5%, hitting 1.575 million.

Lottery revenue rose by 5% to €48.7 million in the same period. Despite these gains, net profit after tax dropped by 15.5% to €8.3 million. The decline followed higher expenses, though ZEAL maintained its full-year outlook.

ZEAL’s B2C games portfolio now includes over 740 titles, with around 90 added since late 2025. On 14 April 2026, the company launched Traumautoverlosung, a new charity lottery. The German online lottery market still has growth potential, with online penetration at an estimated 29%.

For 2026, ZEAL aims for total revenue between €250 million and €260 million. It also targets EBITDA of €70 million to €75 million. ZEAL’s Q1 2026 results show revenue growth in both gaming and lottery segments. However, rising costs have cut into profits. The company remains focused on expanding its portfolio and meeting its annual financial targets.

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