Zeal Network SE, a German lottery brokerage, has announced a 22% increase in group revenue for the first three quarters of 2026, reaching €198.8 million ($223.8 million). This growth is attributed to the expansion of its lottery business and the recent integration of UK prize-draw operator SevenCanyon, which Zeal fully acquired on July 9, 2026. In comparison, the group revenue during the same period in 2025 was €162.6 million.
The company's EBITDA also saw a rise of 9%, amounting to €58.7 million, even as it navigated one-off costs from mergers and acquisitions estimated to be in the “mid-single-digit millions of euros.” SevenCanyon contributed €10.5 million to Zeal's revenue over these nine months, marking its first full quarter within the group as reported in the third quarter results.
There was notable performance in Zeal's “Others” segment, which surged 241% year on year to €15.8 million, producing an EBITDA of €2.6 million where €1.4 million came from SevenCanyon.
Dr. Stefan Tweraser, CEO, commented on the performance, stating that the diversification of their business model is proving beneficial, reducing reliance on jackpot cycles. "Our strategy to diversify our business is paying off. We are expanding our revenue basis and opening new growth opportunities," he said. He added that their main business in state lottery brokering is on the rise, while charity lotteries and the SevenCanyon acquisition enhance their revenue streams.
CFO Andrea Behrendt noted the successful consolidation of SevenCanyon within the Zeal Group provides a crucial foundation for further diversification.
On the charity lottery front, revenue increased by 16% to €170.8 million from €147.7 million in the previous year, with lottery billings rising by 10% to €915.1 million. Over the period, Zeal attracted over one million new lottery customers, marking a 15% increase compared to the 879,000 from the first nine months of 2025. The average monthly active users in the lottery segment reached 1.678 million, up from 1.572 million, while the gross margin improved to 18.3% from 17.5%.
Games revenue also grew by 18% to €12.1 million, with billings up 17% to €160.3 million, and the average monthly active users rising to 35,000 from 28,000. Zeal's charity lotteries, such as the Dream Car and Dream House raffles, achieved considerable growth too, with the Dream House raffles averaging €9 million in billings per event.
The company announced that customer growth contributed to over €300 million in funding for public and charitable causes in Germany, according to Behrendt.
Looking ahead, Zeal maintained its EBITDA forecast at between €70 million and €75 million, accounting for expected non-recurring acquisition costs and a standard jackpot environment in Germany. After consolidating SevenCanyon and aligning with International Financial Reporting Standards, the company increased its full-year revenue guidance to €270 million-€280 million, up from a previous estimate of €250 million-€260 million.
Explaining the strategic significance of the SevenCanyon acquisition, Tweraser remarked that it allowed Zeal to effectively penetrate the UK prize draw market. He emphasized that their strong commitment to regulation would facilitate success as the UK sector evolves towards more formalized guidelines and higher regulatory standards, which would benefit Zeal given their extensive experience in Germany’s highly regulated environment.
"This is an ideal environment for us as a well-capitalized consolidator with the right infrastructure and a rules-based setup. Rising standards favor operators with strong compliance capabilities and market expertise," he stated.
Currently, UK prize draws operate outside traditional lottery regulations, guided by a voluntary code established by the Department for Culture, Media and Sport designed to enhance player protection and accountability. Tweraser underscored SevenCanyon's role in advocating for this code, which has become crucial for operators seeking to establish themselves in the UK market.
