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ZEAL Network SE / Half-yearly Results
ZEAL Network SE: Continued growth in Billings, Revenues and Active Customers
11-Aug-2017 / 07:07 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group AG.
The issuer is solely responsible for the content of this announcement.
*Press release *
*Continued growth in Billings, Revenues and Active Customers*
- After a successful beta launch in Norway, planned roll out of social
lottery in the Netherlands in the fourth quarter
- EUR 1.9 million investment in Los Angeles based start-up Omaze Inc.
- Total operating performance up 6% to EUR 65.0 million
- EBIT for the reporting period amounted to EUR 7.9 million
(London, 11 August 2017) ZEAL Group[1] had a solid first half of 2017 and
laid the foundations for further growth, driving forward the Group's
internationalisation strategy. Our Business-to-Consumer (B2C) segment
continued to perform well against key performance indicators. Billings,
Average Monthly Active Users (MAU) and Total Operating Performance (TOP) all
increased. In addition, the Group further pursues its internationalisation
strategy and the extension of its product portfolio.
In May 2017, ZEAL invested EUR 1.9 million in the Los Angeles based start-up
Omaze Inc. Omaze offers an international non-licenced social prize
competition. It targets the emerging millennial generation and transforms
charitable giving, offering once-in-a-lifetime experiences. In June 2017,
ZEAL successfully launched a Norway charity lottery product in beta in
partnership with UNICEF Norway. For the next half year, the Group plans to
roll out an innovative social lottery in the Netherlands under its Lottovate
licence. Furthermore, the Group is applying for a lottery licence in Czech
Republic.
The Group expanded its product portfolio and strengthened its B2C business
by launching two new exciting products: 'Danke Million' and 'Cash4Life',
both of which have shown a promising start.
Billings increased by EUR 3.4 million (+3%) to EUR 136.4 million in the six
month period ended 30 June (2016: EUR 133.0 million). This, together with a
reduction in exceptional prize pay-outs of EUR 2.0 million compared to the
prior period, drove the year on year increase in TOP of 6% to EUR 65.0
million (2016: EUR 61.4 million).
In the first six months, EBIT decreased from EUR 10.3 million last year to
EUR 7.9 million this year, primarily due to investments in marketing
activities, higher personnel costs and higher hedging expenses.
Average MAU increased 7% to 387k for 2017, compared to the corresponding
period in the prior year and confirms the currently intensified marketing
activities within the group. Average Billings Per User (ABPU) decreased
slightly to EUR 55.24 (2016: EUR 57.26), influenced by new users and a shift
in the product mix.
Dr Helmut Becker, Chief Executive Officer of ZEAL: 'In the first half of the
year, we made good progress and stayed fully in line with our
internationalisation strategy. Later this year, we expect to receive a
licence to operate in the Czech Republic. Our innovative lottery products
and long-standing experience help us to make successful new market entries.
At the same time, we further push the expansion of our B2C product portfolio
and make strategic investments, including our stake in Omaze.'
*ZEAL's strategic outlook for 2017 remains unchanged *
The strategic outlook of ZEAL remains unchanged with attractive growth
opportunities in its target markets. The Group is in a good position to
further capitalise on opportunities arising from changes to regulatory
conditions as well as from the relatively low internet penetration of the
lottery industry.
The expectation for TOP in 2017 ranges between EUR 130-140 million and
therefore stays in line with the revised guidance provided in March. The
expectation for the consolidated EBIT is unaltered 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. This position is subject
to periodic review and may be amended depending on the Group's future
earnings and financial position.
[1] ZEAL Group includes all subsidiaries of ZEAL Network SE and the
companies of the independent shareholding MyLotto24 Ltd.
Selected Financials:
*H1 2017* *H1 2016*
Revenue EUR '000 62,351 38,330
Total operating performance EUR '000 64,976 61,444
EBIT EUR '000 7,899 10,264
Net profit EUR '000 5,600 6,329
Earnings/share EUR 0.67 0.75
***
*Contact:*
ZEAL Network SE
Press office
Phone: +44 (0)20 3739-7000
E-Mail: 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 SE. In November 2014, the company was renamed ZEAL Network SE. Its
shares are listed on the Prime Standard of the Frankfurt Stock Exchange.
Since its incorporation, ZEAL has generated stakes of more than 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 [2]). Lotto Network enables private
business partners to host their own branded lotto product
(www.lottonetwork.com [3]). Ventura24 is a lottery ticket broker in Spain
(www.ventura24.es [4] ). Tipp24 offers consumer facing lottery betting
products (www.tipp24.com [5]).[1] ZEAL Group includes all subsidiaries of
ZEAL Network SE and the companies of the independent shareholding MyLotto24
Ltd.
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
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
Category Code: IR
TIDM: -
Sequence No.: 4521
End of Announcement EQS News Service
600773 11-Aug-2017
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(END) Dow Jones Newswires
August 11, 2017 01:07 ET (05:07 GMT)
