ZEAL Network SE

Welcome, ladies and gentlemen, to the full year 2025 earnings call of Sihl Network SE. The company's CEO, Dr. Stefan Tverase, and CFO, Andrea Behrendt, will guide you through the figures in a moment, followed by a Q&A session via audio line. And with that, I'm handing over to you, Andrea.

Thanks a lot. And good morning, everybody. And welcome to our earnings call for the full year results 2025. We are very happy to have you here. I hope you can all see the presentation. If not, please go on our website in the investor relations section. You will find it there. With me today is Stefan, our CFO, CEO. and together we will present our strong results of 2025. First of all, let me briefly walk you through our agenda of today. So we will start with an overview of our key highlights from 2025, followed by the review of the financial performance And then we will look into 2026 with our strategic priorities and the guidance. Last but not least, we will, of course, share our dividend proposal and the main takeaways before we are opening up for our Q&A session. And with that, let me hand over to Stefan for the summary of our 2025 results.

Thank you, Andrea. And also from my side, a warm welcome to all of you on the call. More than happy to have you. Let me give you a brief summary of what we've achieved in the financial year of 2025, which was defined by a less than exciting market environment, but we've been able to regardless deliver outstanding operational results. Let me highlight four things. First of all, we continued to significantly expand our customer base. And we will dive into the details of that. We have once again improved our gross margin in the fourth quarter of last year. We've achieved a gross margin of 18.5%, a really remarkable result. And we were able to continue growing profitable on the basis of our operational strength. But having achieved all those operational excellence has also allowed us to raise more than 375 million euros for charitable causes, which is a significant driver of what we do here. All of this has been driven by us being able to really deliver on our strategic objectives for 2025. To remind you, we had three things set out for 2025. We wanted to continuously improve the acquisition performance and the profitability of our core business, Lotto24. We wanted to successfully scale Dramas Verlosung and we vowed to accelerate the growth of our games business. In all of those three areas, we've been able to achieve outstanding results. In our core business, we've increased the gross margin to 17.7%, which was supported by both successful pricing measures and an increase of our product and improvement of our product mix towards more profitable and more margin strong products. Despite a less than exciting jackpot situation, we've been still able to acquire customers and the customer acquisition is one of the main strengths of our Lotto24 business. At Amors Verlosung, we've achieved a jaw-dropping growth of buildings of more than 200%, 205% to be exact. We raffled off a total of four houses in 2025, and the performance of 2025 was significantly above our expectations with buildings close to 40%. In terms of the houses, one outstanding performance house was the St. Peter Ording House, which delivered the best performance of our 2025 portfolio. And in the games business, also astonishing growth, more than 40%, 42% to be exact. Our games portfolio today consists of more than 650 games, which is very received by our customers. We have active customers. and our active customer base increasing from 2024 to 2025 from 22k to more than 30k customers and we generated over 40 millions of revenues and a very strong EBITDA contribution of our games business of 6.1 million and in both of these measures we have surpassed our very ambitious targets.