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ZEAL Network SE (-)
ZEAL Network SE: New countries, products and customers: a bright future for
ZEAL as Q3 results match guidance
10-Nov-2017 / 07:35 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
*New countries, products and customers: a bright future for ZEAL as Q3
results match guidance*
_London, 10 November 2017_
ZEAL Group, the world's leading lottery innovator, today announced Earnings
Before Interest and Tax (EBIT) of EUR12.5million for the first nine months
of the year (2016: EUR23.3million) as it continued to invest in
international expansion, product diversification and new customer
acquisition.
The results, in line with guidance, are published on the same day as the
Group launches Norway's first online charity lottery in partnership with
UNICEF Norway. The UNICEF-lotteriet will help raise vital additional funds
for the global charity to help support its work around the world. Tickets go
on sale at 18.00 (GMT) and the first draw will take place on Friday 17th
November through Facebook Live.
In October, the Group's continued focus on product diversification saw it
deliver its most successful new product launch to date as it introduced
world record-breaking US lottery, Powerball, to its portfolio. Additionally,
the results of the Group's sustained focus on new customer acquisition were
demonstrated by a nearly 80% uplift during the period compared to 2016.
Billings for the first nine months of the year were stable at
EUR201.7million (2016: EUR204.1 million), while Total Operating Performance
(TOP) showed a slight decrease of 3.6% to EUR97.6million (2016:
EUR101.2million). This was driven by an exceptionally weak jackpot
environment in the third quarter of 2017, increased hedging costs due to
rule changes in the EuroMillions lottery, and cumulative prize payouts in
the quarter of EUR3.7million above the statistical average.
Despite this challenging environment, ZEAL's diversified product and
marketing approach enabled the company to outperform the market in terms of
billings, by nearly 4 percentage points in the third quarter of 2017.
*Dr. Helmut Becker, Chief Executive, ZEAL Group said: *'The future is bright
for ZEAL. We have brought a very significant number of new customers on
board, have had our most successful ever new product launch with Powerball,
and will tonight launch Norway's first online charity lottery in partnership
with UNICEF Norway. Despite the unfavourable jackpot environment and higher
than average prize payouts, our financial performance in the third quarter
was solid.'
*Key Highlights for 9 months to 30 September 201**7*:
*2017* *2016*
*Statutory EBIT* EUR12.5 million EUR23.3 million
*Billings* EUR201.7 million EUR204.1 million
*TOP* EUR97.6 million EUR101.2 million
*Average Monthly Active Users* 372k 366k
*Average Billings Per User* EUR57 EUR58
*Strategic outlook unchanged*
The strategic outlook for ZEAL remains unchanged, with continuing attractive
product and market growth opportunities for the Group. TOP is expected to
range from EUR130 million to EUR140 million. The expected range for
consolidated EBIT remains at EUR15 million to EUR25 million. ZEAL confirms
its intention to pay a total dividend of at least EUR1.00 per share. This
position is subject to review and may be amended depending on the Group's
future earnings and financial position.
*- ENDS -*
*Contacts:*
_Media Relations:_
Matt Drage, Head of Corporate Communications
+44 (0) 7976 872 871
matt.drage@zeal-network.co.uk
_Investor Relations:_
Frank Hoffmann,
+44 (0) 20 3739 7123
frank.hoffman@zeal-network.co.uk
*Notes to Editor*:
1. ZEAL is an international group of companies reinventing the world of
lottery.
2. Specialising in the online lottery space, the company was founded in 1999
as Tipp24 SE and renamed as ZEAL Network SE in 2014.
3. The company is based in London, and its shares are listed on the Prime
Standard of the Frankfurt Stock Exchange.
4. Since its incorporation, ZEAL has generated stakes of more than EUR3
billion and, across the Group, paid out more than EUR1.3 billion in
winnings.
5. ZEAL's associated company, myLotto24, invented the concept of
jackpot-matching lottery betting. It holds the sector's record for the
single largest payout of EUR48 million. In Q1 2017, myLotto24, made a
life-changing payment of EUR15 million to a winning customer.
6. ZEAL's third quarter report can be accessed at:
http://www.zeal-network.co.uk/investors/financial-news/ [1]
7. Total Operating Performance is calculated as the sum of Revenue and Other
Operating Income as disclosed in the Interim Consolidated Income Statement.
8. ZEAL Group includes all subsidiaries of ZEAL Network SE and the
affiliated companies of the independent shareholding myLotto24 Ltd.
9. In the third quarter of 2017, the primary German lottery market
experienced an 12% decrease in billings on EuroJackpot and Lotto 6 aus 49
products. ZEAL's performance was 4 percentage points better during the same
period.
ISIN: GB00BHD66J44
Category Code: QRT
TIDM: -
LEI Code: 391200EIRBXU4TUMMQ46
Sequence No.: 4831
End of Announcement EQS News Service
627727 10-Nov-2017
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(END) Dow Jones Newswires
November 10, 2017 01:35 ET (06:35 GMT)
