DGAP-Regulatory: ZEAL announces investment in growth strategy, 2017 guidance, developments in VAT matter and adjusted dividend policy

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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. 
 
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Archive at www.dgap.de/ukreg 
Language:      English 
Company:       ZEAL Network SE 
               5th Floor One New Change 
               EC4M 9AF London 
               United Kingdom 
Phone:         [phone] 
Fax:           [phone] 
E-mail:        [e-mail] 
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)