Dow Jones received a payment from EQS/DGAP to publish this press release.
ZEAL Network SE / Dividend Declaration
ZEAL announces investment in growth strategy, 2017 guidance, developments in
VAT matter and adjusted dividend policy
26-Jan-2017 / 19:02 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The group has identified several significant growth opportunities in its
highly profitable core business. In order to capitalise on these
opportunities, marketing investment will be stepped up in the secondary
lottery business in 2017 and onwards.
This strategy is anticipated to have a positive impact in the mid-term, with
significant growth by 2019. As a result of the planned increase in marketing
investment, ZEAL expects an EBIT in the range of EUR 30 to 40 million in the
fiscal year 2017 and a total operating performance of EUR 145 to 155 million
in the same period.
Separately, ZEAL Network SE has been informed by MyLotto24 Ltd (MyLotto24),
a fully consolidated minority shareholding of ZEAL, that it has had initial
discussions with the German tax authorities about the classification of
certain services of MyLotto24 as so-called Electronically Supplied Services.
As part of this process, MyLotto24 expects to receive a VAT assessment from
the German tax authorities. However, MyLotto24 is confident that this
classification does not apply and expects to successfully challenge any VAT
assessed on this basis. As a result, ZEAL does not expect corresponding
provisions to be required in the group's accounts.
Also in view of the planned additional investment in marketing, management
intends to build up reserves in relation to possible VAT liabilities,
despite its stated belief that any such claim would be unsubstantiated.
Given the unpredictability of any tax case, ZEAL therefore intends to adjust
its current dividend policy. The company intends to declare a dividend in
2017 and onwards amounting to at least EUR 1.00 per share, to be paid in one
annual instalment.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de/ukreg
Language: English
Company: ZEAL Network SE
5th Floor One New Change
EC4M 9AF London
United Kingdom
Phone: +44 (0)20 3739-7000
Fax: +44 (0)20 3739-7099
E-mail: office@zeal-network.co.uk
Internet: www.zeal-network.co.uk
ISIN: GB00BHD66J44
WKN: TPP024
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
Category Code: DIV
TIDM: -
Sequence No.: 3794
End of Announcement EQS News Service
539439 26-Jan-2017
(END) Dow Jones Newswires
January 26, 2017 13:02 ET (18:02 GMT)
