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ZEAL Network SE / 1st Quarter Results
ZEAL expands its international footprint
12-May-2017 / 07:06 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG.
The issuer is solely responsible for the content of this announcement.
*ZEAL expands its international footprint*
- Launch of lottery betting in Ireland, and charity lottery licences
granted in Norway and the Netherlands
- Billings increased by EUR 1.9 million to EUR 68.4 million
- Underlying Q1 performance and cash position remain strong despite high
prize pay-out
- EBIT for the reporting period amounted to EUR 0.2 million
(London, 12 May 2017) ZEAL Group[1] maintained the positive momentum from
2016 during the first quarter of 2017. The Group made good progress with the
further internationalisation of its business, while ensuring that both
monthly active users and billings continued to grow. In March, MyLotto24
Ltd. launched a licensed lottery betting business in Ireland, allowing
customers to bet on the outcome of several lottery draws. Lottovate made
tangible progress towards its strategic aims with the acquisition of
licences in Norway and the Netherlands.
MyLotto24 was once again able to make a life-changing payment to a customer,
with a jackpot prize of approximately EUR 15 million. Despite the large
prize pay-out, the underlying performance of the business and cash position
remained strong. Consolidated revenue decreased, due to the large win
mentioned above, to EUR 23.6 million (Q1 2016: EUR 37.6 million) in the
first quarter. Total operating performance was down from EUR 38.6 million to
EUR 24.1 million in the same period. Consolidated 'normalised' revenue[2] in
the first three months of 2017 amounted to EUR 35.1 million (2016: EUR 35.6
million).
Despite the big win noted above, ZEAL was able to deliver a positive EBIT
for the first quarter of EUR 0.2 million (2016: EUR 14.2 million). The ZEAL
Group also continued to invest in the organisational structure and
marketing. Personnel expenses rose by 19 percent to EUR 8.0 million (2016:
EUR 6.7 million) primarily due to the internationalisation strategy. Other
operating expenses grew from EUR 14.4 million to EUR 15.6 million, mainly
driven by higher investment in marketing activities. This reflects the
Group's continued focus on driving customer acquisition and re-activating
the dormant proportion of the B2C customer base.
Billings rose by 3% to EUR 68.4 million (2016: EUR 66.6 million) for the
quarter. Average monthly active users (MAU) increased by 10% or 36.3k to
392.9k in Q1 2017, compared to the comparative period (2016: 356.6k),
highlighting the effectiveness of the marketing strategy. Q1 2017 saw a
reduction in average billings per user (ABPU) EUR54.35 (2016: EUR57.45)
compared to the same period in 2016, driven mainly by new users and a shift
in product mix.
Helmut Becker, Chief Executive Officer of ZEAL: 'Our journey continues. The
launch of our online lottery betting product in Ireland as well as the new
licences in Norway and the Netherlands prove that we are successfully
expanding our business with locally tailored strategies. We continue to
increase our footprint and bring our innovative and modern lottery products
to an increasing number of customers.'
*Strategic outlook remains unchanged *
The strategic outlook remains unchanged with attractive growth opportunities
in ZEAL's target markets. The Group has made progress towards its strategic
goals, especially with regard to its internationalisation strategy. ZEAL
remains well positioned to capitalise on opportunities arising from changes
to regulatory conditions and the relatively low internet penetration of the
lottery industry. Following the acquisition of the new licences, the launch
of business in Norway is planned for the current quarter (Q2) and in the
Netherlands for the third quarter of 2017.
In line with the revised guidance provided in March, ZEAL expects the
consolidated total operating performance in 2017 to be in the range of EUR
130-140 million and a consolidated EBIT of between EUR 15-25 million. ZEAL
confirms its intention to pay out a total dividend of at least EUR 1.00 per
share for the current financial year, subject to periodic review and may be
amended in the future depending on the earnings and financial position.
Selected Financials:
*Q1 2017* *Q1 2016*
Revenue EUR '000 23,574 37,574
Total operating performance EUR '000 24,142 38,634
EBIT EUR '000 245 14,244
Net profit EUR '000 165 8,695
Earnings/share EUR 0.02 1.04
***
*Contact:*
ZEAL Network SE
Press office
Phone: +44 (0)20 3739-7000
Email: media@zeal-network.co.uk
Investor Relations
Phone: +44 (0)20 3739-7123
Email: ir@zeal-network.co.uk
Internet: www.ZEAL-network.co.uk [1]
About ZEAL Network SE:
ZEAL is a holding company specialised in the area of online lottery. We
offer consumer facing lottery-based games as well as business to business
solutions. Our vision is to create a better world of lottery.
ZEAL Network SE is a London based company, founded in Germany in 1999 as
Tipp24 AG. In November 2014, the company was renamed ZEAL Network SE. Its
shares are listed on the Prime Standard of the Frankfurt Stock Exchange and
are included in the SDAX index. Since its incorporation, ZEAL has generated
stakes of 3.0 billion euros.
ZEAL holds equity interests in businesses running under the following
brands: Lottovate offers digital services to licensed lottery operators
around the world (www.lottovate.com). Lotto Network enables private business
partners to host their own branded lotto product (www.lottonetwork.com).
Ventura24 is a lottery ticket broker in Spain (www.ventura24.es). Tipp24
offers consumer facing lottery betting products (www.tipp24.com).
[1] ZEAL Group includes all subsidiaries of ZEAL Network SE and the
companies of the independent shareholding MyLotto24 Ltd.
[2] Consolidated 'normalised' revenue represents gross revenue generated
adjusted for differences between actual and expected prize pay-outs. Further
explanation is included on page 7 of the Q1 2017 report.
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)203 739-7000
Fax: +44 (0)203 739-7099
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: QRF
TIDM: -
Sequence No.: 4185
End of Announcement EQS News Service
572965 12-May-2017
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(END) Dow Jones Newswires
May 12, 2017 01:07 ET (05:07 GMT)
