Breaking Down ZEAL Network SE Financial Health: Key Insights for Investors

ZEAL Network SE is transforming the digital gaming landscape with a bold blend of product expansion, technology overhaul and social impact-its 2024 Traumhausverlosung generated over €5 million in revenue and had already contributed €5.4 million to charity by mid‑2025, the game portfolio swelled from nearly 300 titles at end‑2024 to more than 400 games by Q1‑2025 as the company eyes a pipeline that targets €40 million in revenues (a projected 40% year‑over‑year increase) while management pursues operational efficiency with ambitions for an operational margin above >16%, a reorganized technology stack that retires legacy systems for scalable data sub‑systems, and a 2026-2028 strategy aiming for mid‑teens, double‑digit annual revenue growth alongside commitment to responsible gaming, customer‑centric innovation, sustainability and integrity that drives every strategic move.

ZEAL Network SE (0QJQ.L) - Intro

• Core business: online lottery, digital gaming aggregation, platform services and marketing-driven product launches.
• Transformation: shift from brokerage to full digital platform with proprietary data systems and scalable sub-systems.

• Product breadth: rapid expansion from ~300 to >400 games in one quarter, with plans to exceed a 2x increase-directly increasing ARPU and retention potential.
• Campaigns & fundraising: Traumhausverlosung produced >€5M in program revenue and delivered €5.4M to charitable causes, demonstrating commercial and ESG impact.
• Revenue targets: management targets €40M revenue reflecting ~40% YoY growth as the platform scales games and customer acquisition.
• Growth runway: guidance for mid‑teens annual growth through 2026-2028 driven by product expansion, cross‑sell and tech efficiencies.

• Technology reorganization: centralized data teams and retired legacy platforms in favor of modular, scalable data sub‑systems to shorten time‑to‑market and improve personalization.
• Data & analytics: investments in customer intelligence to raise conversion, LTV and risk detection-supporting both revenue growth and safer play limits.
• Product roadmap: accelerate game sourcing and integrations (targeting >800 games over the next rollout), with multi‑channel distribution and localized offerings.

• Responsible gaming: built into onboarding, game limits, monitoring and outreach to ensure a safe customer experience.
• Social impact: major fundraising initiatives (e.g., Traumhausverlosung) aligned to company values and external partnerships.
• Operational discipline: target-driven approach-€40M near‑term revenue objective and mid‑teens CAGR commitment for 2026-2028-balanced with tech modernization and compliance.

ZEAL Network SE (0QJQ.L) - Overview

• Operational profitability: targeting an operational margin of >16% for the full year.
• Growth ambition: aiming for double‑digit annual revenue growth (target range: 10-15% year‑on‑year).
• EBITDA focus: continuous EBITDA margin expansion toward mid‑20% levels over the medium term.
• Product diversification: expand non‑jackpot offerings (casino, instant games, sports betting integrations, B2B platforms).
• Technology investment: ongoing upgrades to data systems, automation tools, and consumer UX to boost LTV and lower CAC.
• Responsible gaming: strict compliance, proactive customer protection, and secure transaction systems across markets.

• Scale customer acquisition while improving unit economics through data‑driven marketing and higher retention.
• Accelerate non‑jackpot product rollouts (instant win, digital lottery derivatives, affiliate & B2B partnerships).
• Invest in platform resilience and analytics to reduce fraud, increase conversion, and personalize offers.
• Embed responsible gaming across product design, customer lifecycle management, and regulatory reporting.
• Drive margin expansion via cost automation and higher‑gross‑margin product mix.

ZEAL Network SE (0QJQ.L) Mission Statement

• Deliver market-leading digital gaming experiences across lottery, instant games, and interactive formats.
• Invest in scalable, data-driven infrastructure to improve customer lifetime value and operational efficiency.
• Prioritize responsible gaming and reinvest a portion of profits into community and harm-minimization programs.
• Drive double-digit annual revenue growth while expanding EBITDA margins through product diversification and cost discipline.

• Expand product portfolio to broaden customer base and ARPU (average revenue per user).
• Strengthen data systems, analytics, and tooling to support personalized offers and lifecycle management.
• Target regulated markets and favorable jurisdictions while managing compliance and risk.
• Embed corporate social responsibility into commercial strategy, allocating resources to responsible gaming and community initiatives.

• Traumhausverlosung expansion: scale marketing, integrate cross-sell to existing player base, and use prize-driven acquisition to lower CAC.
• Data & platform agenda: centralized data warehouse, real-time analytics, and AI-driven personalization to increase ARPU by targeted 10-20% over three years.
• Regulatory & market entry playbook: pursue licenses in favorable North American states and targeted EU jurisdictions, leveraging compliance frameworks to accelerate go-to-market.
• Cost & margin program: process automation and supplier consolidation to capture operational savings and improve EBITDA margin by 300-800 bps.

• Monitor regulatory timelines, license approvals, and country-level tax regimes as leading indicators for market-entry feasibility.
• Track KPIs monthly: active users, ARPU, CAC, churn, margin by product, and ROI on tech investments.
• Maintain prudent balance sheet metrics: net debt/EBITDA target < 2.5x and liquidity buffer for expansion investments.

ZEAL Network SE (0QJQ.L) Vision Statement

• Innovation: Embrace next-generation technologies (AI, real-time personalization, blockchain where relevant) to create distinct, secure and engaging gaming products.
• Customer-Centricity: Continuously refine user journeys and product portfolios to boost retention, lifetime value (LTV) and net promoter score (NPS).
• Sustainability: Target double-digit annual revenue growth and progressive expansion of EBITDA margins to deliver long-term value for stakeholders.
• Responsibility: Embed responsible gaming across product design, marketing and operations to ensure player safety and regulatory compliance.
• Collaboration: Leverage cross-functional teams and strategic partnerships to accelerate innovation and operational excellence.
• Integrity: Commit to transparent governance, data-driven decisions aligned with customer needs and clear accountability throughout the organization.

• Scale core markets via localized product launches and omni-channel distribution.
• Increase recurring revenue through subscription-like offerings, loyalty programs and value-added services.
• Improve operational efficiency through platform consolidation and automation to drive margin expansion.
• Strengthen compliance and responsible gaming initiatives, reducing regulatory risk and enhancing brand trust.
• Expand selective M&A to acquire technology, market access and talent that complement organic growth.

• Product innovation velocity - new feature releases per quarter and time-to-market metrics.
• Customer experience - NPS, average session length, conversion rates from acquisition channels.
• Monetization - ARPU, share of recurring revenue, cross-sell uptake.
• Compliance & safety - self-exclusion events, age-verification success rate, regulatory audit outcomes.
• Efficiency - tech stack uptime, automation-driven cost reduction, customer support resolution time.

• Decentralized innovation squads empowered to pilot AI-driven personalization and safer-play features.
• Data governance framework ensuring privacy, model explainability and responsible use of behavioral analytics.
• Transparent board-level KPIs linking executive compensation to revenue growth, margin improvement and responsible gaming metrics.
• Continuous learning programs to retain talent, increase cross-functional expertise and drive collaborative problem-solving.