Zeal Network SE, a German lottery brokerage, reported a notable 22% rise in group revenue for the first nine months of 2026, reaching €198.8 million ($223.8 million). This growth was attributed largely to its expanding lottery business and the incorporation of UK prize-draw operator SevenCanyon into its financials, which began following the acquisition. In comparison, the revenue for the same period in 2025 stood at €162.6 million.
Group EBITDA increased by 9%, totaling €58.7 million, despite incurring one-off merger and acquisition expenses described as being in the mid-single-digit millions of euros. Zeal finalized the acquisition of the remaining 96.5% of SevenCanyon on July 9, marking the first inclusion of this business in their results during the third quarter.
Over the nine-month duration, SevenCanyon brought in revenue of €10.5 million. Additionally, Zeal's "Others" segment witnessed remarkable growth, with revenue soaring 241% year-on-year to €15.8 million, and this segment achieved EBITDA of €2.6 million, which included €1.4 million from SevenCanyon.
CEO Dr. Stefan Tweraser highlighted that the diverse business mix was driving growth while diminishing the company's vulnerability to jackpot cycles. "Our strategy to diversify our business is paying off. We are expanding our revenue basis and opening new growth opportunities," Tweraser stated. He further noted that the core business of state lottery brokering continues to grow, alongside contributions from charity lotteries, games, and the newly acquired SevenCanyon.
CFO Andrea Behrendt remarked on the successful integration of SevenCanyon into the Zeal Group, emphasizing it as a critical step for further business diversification.
Lottery revenue experienced a 16% increase, amounting to €170.8 million, up from €147.7 million the previous year. Lottery billings also rose by 10% to €915.1 million. Zeal added over one million new lottery customers during this time, a 15% increase from the 879,000 recorded in the first nine months of 2025. The average number of monthly active lottery users rose to 1.678 million compared to 1.572 million the previous year, with the lottery gross margin improving to 18.3% from 17.5%.
Games revenue climbed by 18% to €12.1 million, with billings rising 17% to €160.3 million. Average monthly active users for games also grew to 35,000 from 28,000. Zeal’s charity lotteries, including the Dream Car and Dream House raffles, continued to show double-digit growth, averaging €9 million in billings per event during the period.
This customer growth has resulted in over €300 million being contributed to public funding and charitable initiatives in Germany, according to Behrendt.
Looking ahead, Zeal maintained its EBITDA forecast between €70 million and €75 million, factoring in anticipated one-time acquisition costs and a stable jackpot environment in Germany. Following the consolidation of SevenCanyon and the adoption of International Financial Reporting Standards, the company raised its full-year revenue guidance to between €270 million and €280 million, up from the previous estimate of €250 million to €260 million.
Regarding the acquisition of SevenCanyon, Tweraser explained that it provided an ideal entry point into the UK prize draw market. He emphasized Zeal’s commitment to regulatory compliance, which he believed would facilitate their success in this market. "We expect the UK prize draw to continue moving towards more formalised rules and higher regulated standards. This should really favour us with strong experience over the last 20 years in a highly regulated market like Germany," he said. He also pointed out that growing standards favor operators with robust compliance capabilities and expertise in the market.
The UK prize draw sector currently operates outside traditional lottery regulations, guided by a voluntary code established by the Department for Culture, Media and Sport. Although not legally binding, Tweraser remarked that the code has become essential for operators wanting to succeed in this sector. He noted that SevenCanyon played a significant role in advocating for this voluntary code of conduct.
