Zeal Network SE

Quarterly Report • Nov 5, 2025

DEFINING THE FUTURE OF LOTTERY

QUARTERLY STATEMENT 1 JANUARY – 30 SEPTEMBER 2025

Q 1–3 2025 AT A GLANCE

€ 162.6 ^m

Revenue, total

(Q 1–3 2024: €121.0m) + 34%

1,572 ^k

Active lottery customers per month

(Q 1–3 2024: 1,347k) + 17%

€ 54.1 ^m

EBITDA, total

(Q 1–3 2024: €35.0m) + 55%

17.5 %

Gross margin, lotteries

(Q 1–3 2024: 14.5%) + 3.0pp

GROWING CUSTOMER BASE BOOSTS PROFITABILITY

• Expansion of customer base accelerated
• Further significant increase in gross margin
• Profitable growth continued

ZEAL QUARTERLY STATEMENT

Q 1–3

CONTENT

• 2 Q 1–3 2025 AT A GLANCE
• 3 BUSINESS REVIEW AND ECONOMIC POSITION
• 11 SELECTED FINANCIAL INFORMATION

BUSINESS REVIEW AND ECONOMIC POSITION

Summary of the Interim Consolidated Income Statement

IN € THOUSAND	Q 1-3 2025	Q 1-3 2024	Change	Q 3 2025	Q 3 2024	Change
Revenue	162,634	120,952	34%	61,108	44,187	38%
Other operating income	777	430	81%	216	56	285%
Personnel expenses	-28,079	-23,341	20%	-10,729	-9,043	19%
Other operating expenses	-81,205	-63,166	29%	-31,837	-20,361	56%
Marketing expenses	-49,955	-36,923	35%	-20,816	-11,388	83%
Direct operating expenses	-15,160	-12,428	22%	-5,365	-3,831	40%
Indirect operating expenses	-16,090	-13,815	16%	-5,657	-5,142	10%
Exchange rate differences	-34	85	n.a.	-24	28	n.a.
EBITDA	54,094	34,959	55%	18,734	14,867	26%
Amortisation and depreciation	-6,428	-6,069	6%	-2,157	-2,125	1%
EBIT	47,666	28,890	65%	16,578	12,741	30%
Financial result	-3,613	-2,135	69%	-1,156	-927	25%
Share of loss from associates	-52	-135	-62%	239	-50	n.a.
Net profit before taxes	44,001	26,619	65%	15,661	11,764	33%
Income taxes	-10,139	17,665	n.a.	-1,318	-4,401	-70%
Net profit	33,863	44,284	-24%	14,343	7,363	95%
Earnings per share for profit attributable to shareholders of the parent company
Basic and diluted earnings per share (in €/share)	1.61	2.00	-20%	0.68	0.32	113%
Other KPIs
Number of new registered customers (thousand), Germany segment	879	807	9%	380	215	77%
CPL (€), Germany segment	46.52	35.54	31%	45.98	41.98	10%

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

SUBDUED JACKPOT SITUATION IN THE FIRST NINE MONTHS OF 2025

The overall jackpot development was more subdued in the first nine months of 2025 than in the same period last year, but improved in the third quarter. At €8.6 million, the average jackpot level of the 'LOTTO 6aus49' lottery was below the prior-year figure of €9.9 million. The jackpot remained under €30 million throughout the first nine months of 2025, while a record figure of €48 million was reached in the corresponding period of 2024. The maximum jackpot of €120 million for the 'Eurojackpot' lottery was reached four times in the first nine months of 2025 (of which twice in the third quarter). In the previous year, this maximum amount was reached six times. At €50.0 million (and €56.4 million in the third quarter), the average jackpot level of the 'Eurojackpot' was slightly above the prior-year figure of €48.8 million.

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

GROUP'S EARNINGS POSITION

In the first nine months of 2025, revenue rose by 34% (€41,682 thousand) to €162,634 thousand. The main driver of this growth was the Germany segment, where revenue rose by 35% (€41,248 thousand). This was primarily attributable to the persistently strong growth of its lottery business (36%), which benefited from a higher gross margin following the price adjustment in June 2024 and a changed product mix, as well as from an increase in monthly active users (MAU). We also continued the strong growth of our games business. Revenue increased by 51% (€3,487 thousand) to €10,314 thousand. This was mainly due to the increase in MAU, which rose by 38% over the course of the reporting period to 28 thousand and reached a new high of 31 thousand in the third quarter.

Compared to the previous year, personnel expenses rose by 20% (€4,737 thousand). This trend was primarily attributable to the increase in average headcount (FTEs, excluding students and temporary staff) from 202 to 257 (27%) across the first nine months of 2025, which was mainly in connection with the development of new business fields. The rise in personnel expenses was also the result of one-off effects from the departure of executives in 2025. There was an opposing effect in the previous year from the one-off formation of additional provisions for potential wage and VAT liabilities for the years 2020 to 2023 totalling €1,582 thousand, as well as from variable remuneration components which were €505 thousand lower.

Other operating expenses rose by 29% (€18,039 thousand) in the first nine months of 2025:

• › Marketing expenses increased by 35% (€13,033 thousand). These measures enabled us to gain 879 thousand new customers (2024: 807 thousand). Due to more intensive acquisition measures, increased brand marketing and initiatives to tap new target groups and channels, cost per lead (CPL) rose by 31% to €46.52.
• › Direct operating expenses rose by 22% (€2,731 thousand) and thus more strongly than customer payments (year-on-year growth of 15%). The rise was mainly due to an increase in commission paid to external developers (€829 thousand) resulting from the growth of our games.
• › Indirect operating expenses rose by 16% (€2,275 thousand), mainly driven by higher costs for consulting and external staff (€2,092 thousand).

In the first nine months of 2025, our EBITDA margin rose from 28.9% to 33.3%. This development reflects both our strong revenue growth and considerably improved operating efficiency. There was a corresponding increase in EBITDA of 55% to €54,094 thousand.

The financial result declined by €1,477 thousand to - €3,613 thousand. This is primarily attributable to increased interest expenditure following the new loans taken out in July 2024 totalling €100 million.

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

The tax expense of €10,139 thousand in the first nine months of 2025 resulted mainly from:

• › The taxation of our German operations, based on an unchanged average tax rate of 32.28%.
• › A positive effect of €4,101 thousand from the revaluation of deferred tax assets and liabilities resulting from the future gradual reduction in the corporation tax rate from 15% to 10% brought about by the 'Act on a Tax Investment Programme to Strengthen Germany as a Business Location' that came into force in July 2025.

Tax income reported in the previous year was due to the recognition of deferred tax assets amounting to €27,495 thousand.

The decrease in net profit of €10,422 thousand resulted mainly from the recognition of deferred tax assets in the previous year, which was partially offset by the increase in profitability.

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

DEVELOPMENT OF THE GERMANY SEGMENT

Germany segment

IN € THOUSAND	Q 1-3 2025	Q 1-3 2024	Change	Q 3 2025	Q 3 2024	Change
Condensed interim income statement
Revenue	157,990	116,743	35%	59,430	42,745	39%
thereof from lotteries	146,030	107,591	36%	55,061	39,580	39%
thereof from games	10,314	6,826	51%	3,623	2,336	55%
Other operating income	777	429	81%	216	56	285%
Personnel expenses	-26,909	-22,338	20%	-10,346	-8,690	19%
Other operating expenses	-79,380	-61,473	29%	-31,055	-19,781	57%
thereof marketing expenses	-48,423	-35,529	36%	-20,136	-10,864	85%
EBITDA	52,444	33,361	57%	18,221	14,331	27%
Financial and other KPIs - Lotteries
Customer payments	682,676	599,459	14%	253,094	191,423	32%
Billings	834,286	743,051	12%	306,939	235,992	30%
Revenue	146,030	107,591	36%	55,061	39,580	39%
Customer payment margin (%)	21.4	17.9	+3.5pp	21.8	20.7	+1.1pp
Gross margin (%)	17.5	14.5	+3.0pp	17.9	16.8	+1.1pp
MAU (thousand)	1,572	1,347	17%	1,686	1,334	26%
ABPU (€)	58.98	61.31	-4%	60.68	58.95	3%
Financial and other KPIs - Games
Customer payments	31,180	19,742	58%	10,686	7,112	50%
Billings	136,878	92,856	47%	46,236	31,583	46%
Revenue	10,314	6,826	51%	3,623	2,336	55%
Customer payment margin (%)	33.1	34.6	-1.5pp	33.9	32.8	-1.1pp
Gross margin (%)	7.5	7.4	+0.2pp	7.8	7.4	+0.4pp
MAU (thousand)	28	20	38%	31	20	56%
ARPU (€)	41.06	37.63	9%	38.86	38.84	0%

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

The increase in revenue of the Germany segment of 35% (€41,248 thousand) in the first nine months of 2025 was primarily due to the growth of the lottery business. Billings were raised by 12% (€91,234 thousand) and revenue from lotteries by 36% (€38,438 thousand). This development was mainly attributable to the following factors:

• › 17% increase in monthly active users (MAU), due in particular to the strong growth of our customer base in the fiscal year 2024. This growth also continued in 2025. 879 thousand new customers were acquired in the first nine months of 2025 (2024: 807 thousand). There was a particularly strong increase in MAU in the third quarter, during which the 'Eurojackpot' reached its maximum jackpot amount twice and around 380 thousand new customers registered.
• › Gross margin raised from 14.5% to 17.5% due to an increase in ticket fees in June 2024, as well as a changed product mix.

There was an opposing effect from a 4% decline in average monthly billings per user (ABPU). This decline was mainly a result of the more subdued jackpot situation compared to the previous year.

Our games business achieved significant growth in the first nine months of 2025. New partnerships with renowned games developers, such as Greentube and Ggames, helped us expand our B2C games portfolio to almost 600 titles. This enabled us to further expand our customer base in the first nine months of 2025 and significantly increase the number of monthly active users (MAU) by 38% to 28 thousand. Moreover, average revenue per user (ARPU) increased by 9% to €41.06 in the first nine months of 2025. Both factors led to an increase in revenue from games of 51% (€3,487 thousand).

DEVELOPMENT OF ALL OTHER SEGMENTS

All other segments

IN € THOUSAND	Q 1-3 2025	Q 1-3 2024	Change	Q 3 2025	Q 3 2024	Change
Revenue	4,644	4,209	10%	1,678	1,441	16%
Other operating income	–	1	-100%	–	–	n.a.
Personnel expenses	-1,170	-1,004	17%	-383	-353	8%
Other operating expenses	-1,825	-1,608	13%	-782	-552	42%
thereof marketing expenses	-1,532	-1,394	10%	-679	-525	30%
EBITDA	1,650	1,598	3%	513	536	-4%

The increase in revenue from all other segments of 10% (€435 thousand) was mainly due to the positive development of our business in Spain. This development also led to an increase in EBITDA of 3% (€51 thousand).

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

FINANCIAL AND ASSET POSITION

The following table presents a condensed interim consolidated statement of cash flows:

IN € THOUSAND	Q 1-3 2025	Q 1-3 2024
Main cash flows
Cash inflow from operating activities	45,207	25,347
Cash inflow/outflow from investing activities	4,291	-821
Cash outflow from financing activities	-59,173	-12,672
Other changes in available funds	-23	23
Total change in available funds	-9,697	11,877
Available funds at the beginning of the period	114,916	57,704
Available funds at the end of the period	105,218	69,581

In the first nine months of 2025, cash and cash equivalents declined by €9,697 thousand.

Cash inflow from operating activities amounted to €45,207 thousand in the first nine months of 2025 (2024: €25,347 thousand). The positive effect from the increase in EBITDA to €54,094 thousand and the rise in other financial liabilities of €10,507 thousand was partially offset by the following factors:

• › Decrease in trade payables of €5,217 thousand.
• › Payment of variable remuneration of €4,670 thousand, for which a provision was formed in the previous year.
• › Income tax payments of €4,635 thousand.
• › Payments of €2,399 thousand to the Austrian tax authorities in connection with the gaming duty proceedings described in note 2.3 to the Consolidated Financial Statements 2024.
• › Interest payments for long-term bank loans of €3,157 thousand.

The cash inflow from investing activities amounted to €4,291 thousand in the first nine months of 2025 (2024: outflow of €821 thousand). The increase resulted mainly from the receipt of a bond repayment of €5,000 thousand.

Cash outflow from financing activities amounted to €59,173 thousand (2024: €12,672 thousand). This resulted mainly from dividend payments of €50,640 thousand (2024: €23,832 thousand), as well as from the redemption of long-term bank loans of €7,895 thousand.

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

Equity capital amounted to €220.4 million as of 30 September 2025 (end of 2024: €238.5 million), corresponding to an equity ratio of 51.0%. The capital reduction of €714,285 adopted in the previous year via cancellation of the 714,285 shares acquired in the fiscal year 2022 became effective on execution of the cancellation on 13 March 2025. Since this time, the subscribed capital of ZEAL Network SE has amounted to €21,681,785, divided into 21,681,785 no-par value registered ordinary shares. The difference of €19,286 thousand between the purchase costs of the cancelled shares of €20,000 thousand and the amount of the reduced subscribed capital of €714,285 was offset from the capital reserve. As of 30 September 2025, the Company still held 581,832 treasury shares.

There were no other significant changes in our financial position and performance.

RISK AND OPPORTUNITY REPORT

We reported extensively on the expected development with its main opportunities and risks in the Group Management Report 2024.

On 13 March 2025, the Federal Finance Court in Feldkirch announced its ruling in the proceedings described in the Group Management Report on page 137 of the Annual Report 2024 concerning gambling duty in Austria. The court confirmed our view and the corresponding gambling duty of 40% of gross receipts for draws in which participation occurred in Austria. The court did not permit an ordinary appeal. However, the Austrian tax authorities have lodged an appeal against the denial of leave to appeal in order to achieve an appeal. We do not currently expect the appeal to be allowed.

There were no other significant changes in opportunities and risks in the period up to 30 September 2025.

FORECAST REPORT

On 18 September 2025, we upgraded the annual guidance first published in March 2025. Depending on the general conditions – in particular the further jackpot development – we now expect revenue for the fiscal year 2025 to be between €205 million and €215 million (previously €195 million to €205 million). We expect EBITDA to be in the range of €63 million to €68 million (previously: €55 million to €60 million).

	2025	2025	2024
IN € MILLION	New guidance	Old guidance	Actual
Revenue (including reimbursements from jackpot insurance)	205–215	195–205	188.2
EBITDA	63–68	55–60	61.9

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

SELECTED FINANCIAL INFORMATION

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS IN € THOUSAND	30 September 2025	31 December 2024
Property, plant and equipment	1,688	1,324
Right of use assets	1,327	1,797
Goodwill	158,585	158,585
Intangible assets	107,707	113,285
Other investments	14,533	15,711
Shares in associated companies	1,628	1,680
Other financial assets	85	318
Total non-current assets	285,554	292,700
Income tax receivables	168	4,498
Trade receivables	2,554	4,783
Inventories	3,781	3,167
Receivables from finance lease	0	240
Prepaid expenses	3,533	1,736
Other financial assets	30,250	34,970
Other assets	1,519	523
Cash and cash equivalents	105,218	114,916
Total current assets	147,023	164,833
ASSETS	432,576	457,533

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

30 September 2025	31 December 2024
26,837	27,484
78,620	86,232
5,109	5,405
4,485	7,253
835	1,363
115,886	127,738
6,935	12,151
10,526	10,526
51,527	40,724
13,722	15,868
9,307	7,524
3,614	3,502
667	993
96,298	91,288
21,682	22,396
174,808	194,108
-25,592	-45,845
9,296	10,874
40,198	56,975
220,392	238,508
0	0
220,392	238,508
432,576	457,533

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

INTERIM CONSOLIDATED CASH FLOW STATEMENT

IN € THOUSAND	Q 1-3 2025	Q 1-3 2024
Net profit before taxes	44,001	26,619
Adjustments for
Amortisation/depreciation	5,958	5,880
Depreciation of right-of-use assets	470	189
Share of loss from associates	52	135
Interest income from finance leases and gains from the disposal of right-of-use assets	-1	-60
Other income from financial activities	-46	-137
Expenses from financial activities from lease liabilities	49	99
Other expenses from financial activities	3,562	1,973
Adjustment of fair values of financial instruments	233	405
Translation differences	34	-85
Other non-cash income/expenses	-392	-159
Changes in
Trade receivables	2,229	477
Prepaid expenses	-1,797	-864
Inventories	-613	-2,172
Other financial assets	-392	858
Other assets	-996	-238
Trade payables	-5,217	3,210
Other financial liabilities	10,507	-8,627
Other liabilities	-2,146	870
Provisions	-2,655	2,486
Interest received	160	233
Interest paid	-3,157	-2,072
Income taxes paid	-4,635	-3,673
Cash inflow from operating activities	45,207	25,347

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

IN € THOUSAND	Q 1-3 2025	Q 1-3 2024
Bond repayments 1	5,000	-
Receipts from the repayment portion of subleases (finance lease)	233	697
Payments for the acquisition of intangible assets	-	-15
Payments for the acquisition of property, plant and equipment	-726	-468
Payments for the acquisition of shares in associated companies and other investments	-400	-1,176
Dividends received	184	140
Cash inflow/outflow from investing activities	4,291	-821
Payments for the repayment portion of lease liabilities	-829	-1,437
Receipts from the sale of treasury shares	192	131
Receipts from the taking out of loans	-	58,822
Payments for the redemption of loans 2	-7,895	-42,937
Payments for the acquisition of non-controlling interests	-	-3,419
Dividend payments	-50,640	-23,832
Net cash inflow/outflow from financing activities	-59,173	-12,672
Net increase/decrease in cash and cash equivalents	-9,674	11,854
Exchange rate-related changes in cash and cash equivalents	-23	23
Available funds at the beginning of the period	114,916	57,704
Available funds at the end of the period	105,218	69,581

^<sup>1The loan from Hamburger Sparkasse reported in note 17 of the Consolidated Financial Statements 2024 was repaid as scheduled.

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1-3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

^<sup>2 Scheduled repayments were made during the reporting period on the interest-bearing loans reported in note 19 of the Consolidated Financial Statements 2024.

NOTES

Definitions of the financial measurements and indicators disclosed in this Quarterly Statement can be found in the 'Management System' section of the Group Management Report on pages 102 to 106 of the Annual Report 2024.

Unless otherwise stated, the term '2024' or 'Q 1-3 2024' used throughout this Quarterly Statement refers to the same period of the previous year (in other words, the first nine months of 2024).

Quarterly statements under section 53 of the Frankfurt Stock Exchange Regulations (BörsO) are not subject to an audit review, nor are they audited in accordance with section 317 of the German Commercial Code (HGB).

This Quarterly Statement contains forward-looking statements based on current plans, estimates and forecasts. Forward-looking statements are subject to risks and uncertainties. Actual results, events and developments may differ materially and adversely from those expressed in the forward-looking statements. ZEAL undertakes no obligation and does not intend to update any forward-looking statements after the publication of this Quarterly Statement.

ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION

FINANCIAL CALENDAR

25 March 2026 Publication of Annual Report 2025
6 May 2026	Publication of Quarterly Statement Q 1
20 May 2026	Annual General Meeting
Publication of Half-Yearly Financial Report 5 August 2026
4 November 2026	Publication of Quarterly Statement Q 1-3

PICTURE CREDITS

Cover: gettyimages/GaudiLab

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ZEAL Network SE

Straßenbahnring 11 20251 Hamburg Germany

Tel.: +49 (0)40 809036065

zealnetwork.de

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ZEAL

QUARTERLY STATEMENT Q 1–3

Q 1–3 2025 AT A GLANCE

BUSINESS REVIEW AND ECONOMIC POSITION