Zeal Network SE, a German lottery brokerage, reported a 22% increase in group revenue for the first nine months of 2026, reaching €198.8 million ($223.8 million). This growth follows the consolidation of UK prize-draw operator SevenCanyon into Zeal's overall operations, marking a significant shift for the company. Revenue from the same period in 2025 was recorded at €162.6 million.
The group’s EBITDA climbed 9% to €58.7 million, although this figure accounts for one-time merger and acquisition costs described as being in the “mid-single-digit millions of euros.” Zeal finalized its acquisition of the remaining 96.5% of SevenCanyon on July 9, incorporating this new business for the first time in its third-quarter results. Over the nine-month period, SevenCanyon contributed €10.5 million to Zeal’s revenue. In addition, revenue from Zeal’s “Others” segment surged by 241% year on year to €15.8 million, with an EBITDA of €2.6 million, including €1.4 million from SevenCanyon.
Dr. Stefan Tweraser, the Chief Executive Officer, noted that the company’s evolving business mix is driving growth while minimizing exposure to jackpot cycles. He stated, "Our strategy to diversify our business is paying off. We are expanding our revenue basis and opening new growth opportunities." Tweraser highlighted that while their core business of brokering state lotteries is growing, the performance of charity lotteries, games, and the recently acquired SevenCanyon significantly boosts revenues and mitigates jackpot cycle risks.
CFO Andrea Behrendt remarked on the successful integration of SevenCanyon into Zeal's operations, emphasizing its importance for the company's diversification strategy. Lottery revenue increased by 16% to €170.8 million, compared to €147.7 million in the previous year, with lottery billings rising 10% to €915.1 million. The firm welcomed over one million new lottery customers, representing a 15% increase from 879,000 recorded during the same nine-month span the previous year.
Average monthly active lottery users reached 1.678 million, a rise from 1.572 million in 2025, and the lottery gross margin improved from 17.5% to 18.3%. Games saw an 18% revenue increase to €12.1 million, with billings up 17% to €160.3 million and average monthly active users climbing from 28,000 to 35,000.
The charity lotteries, including the Dream Car and Dream House raffles, continued to show strong performance, averaging €9 million in billings per event during the nine-month period. Zeal reported that its customer growth allowed for over €300 million in contributions to public funding and charitable causes in Germany, as noted by Behrendt.
The company has maintained its EBITDA forecast of €70 million to €75 million, which encompasses anticipated non-recurring costs and assumes a typical jackpot environment in Germany. After integrating SevenCanyon and aligning with International Financial Reporting Standards, Zeal has adjusted its full-year revenue forecast to €270 million to €280 million, up from the previously estimated €250 million to €260 million.
The acquisition of SevenCanyon serves as a strategic entry into the UK prize-draw market for Zeal. Tweraser indicated that the company’s adherence to regulatory standards was key to successfully entering this new market. "We expect the UK prize draw to continue moving towards more formalized rules and higher regulated standards. This should really favor us with strong experience over the last 20 years in a highly regulated market like Germany," he explained.
Currently, the UK prize draw sector operates outside traditional lottery regulation, guided by a voluntary code established by the Department for Culture, Media and Sport, aiming to enhance player protection and accountability among operators. While not legally binding, this code is considered vital for entities seeking to assert themselves in the UK market. Tweraser highlighted SevenCanyon’s role, stating, "SevenCanyon was one of the big proponents and big drivers of that voluntary code of conduct."
