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ZEAL Network SE (-)
ZEAL Group confirms 2017 results exceed guidance following strong fourth
quarter
22-March-2018 / 07:35 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
_22 March 2018_
*ZEAL Group confirms 2017 results exceed guidance following strong fourth
quarter*
- EBIT of EUR25.2 million; above guidance range
- Total Operating Performance of EUR141.2 million; above guidance range
- 31% increase in new registered customers
- Strong fourth quarter billings of EUR78.8 million; up 21% from third
quarter
ZEAL Group, the world's leading lottery innovator, today announced it
delivered a strong performance in 2017, with results exceeding guidance in
spite of the exceptionally weak jackpot environment during the third quarter
of the year.
The Group confirmed, as it published its audited results for 2017, it has
delivered EBIT of EUR25.2 million and Total Operating Performance (TOP) of
EUR141.2 million. Total billings for the year were maintained at EUR280.5
million[1].
The strong results were delivered in spite of the weak jackpot environment
in the Group's core products during the third quarter, higher hedging costs
due to EuroMillions rule changes, and significant pay-outs including a
single EUR15 million prize in the first quarter.
The Group's fourth quarter performance was particularly strong with billings
of EUR78.8 million; up 21% since the third quarter. This was driven by a
combination of its most successful new product launch to date with the
introduction of Powerball, and record billings in the Spanish Christmas
Lottery, El Gordo.
*Jonas Mattsson, Chief Financial Officer, ZEAL Group, said: *_'2017 was an
exciting and satisfactory year for ZEAL Group. Our strong financial results,
delivered in challenging conditions, demonstrate the underlying strength of
our business. I am particularly pleased with our excellent fourth quarter
performance in which we delivered our most successful new product launch
ever. This, coupled with the progress we have made on being even more
operationally efficient, gives me confidence for the future.'_
The Group continued to make significant progress against its strategy by
launching into three new international markets during the year, including
two in the fourth quarter - Norway and the UK - which followed its second
quarter launch in Ireland. In 2017, its sustained focus on customer
acquisition delivered 411,000 new registered customers for the Group and its
partners (2016: 314,000); an increase of 31%.
*Dr. Helmut Becker, Chief Executive, ZEAL Group said: *_'2017 was a
milestone year for the Group as we made good strategic progress: launching
in three new markets, improving our product portfolio, enhancing our
technology, being even more efficient, attracting more new customers, and
continuing to unearth the lottery disruptors of the future.'_
*Dr Becker added:* 'The global regulatory environment continues to be
challenging. However, we firmly believe the world's lottery market is full
of untapped potential. As a diverse and long-term focused business, we are
well positioned to take advantage of those opportunities.'
[1] Billings comprise all stakes from customers (including brokerage stakes)
net of free bets
*Selected financial results to 31 December 2017*:
*2017* *2016*
*Billings* EUR280.5 million EUR280.4 million
*Statutory Revenue* EUR134.3 million EUR112.9 million
*TOP* EUR141.2 million EUR139.6 million
*Statutory EBIT* EUR25.2 million EUR38.0 million
*Net profit* EUR17.2 million EUR26.0 million
*Earnings per share* EUR2.05 EUR3.09
*2018 Outlook*
For 2018, ZEAL Group expects to deliver EBIT in the range of EUR33 million -
EUR43 million, and Total Operating Performance (TOP) of EUR150 million -
EUR160 million. ZEAL Group expects to pay a dividend of at least EUR1.00 per
share in 2018, subject to financial performance.
*- ENDS -*
*Contacts:*
_Media Relations:_
Matt Drage, Head of Corporate Communications
+44 (0) 7976 872 861
matt.drage@zeal-network.co.uk
_Investor Relations:_
Frank Hoffmann:
+44 (0) 20 3739 7123
frank.hoffmann@zeal-network.co.uk
*Notes to Editor*:
1. The 2017 ZEAL Group annual results can be found here:
http://www.zeal-network.co.uk/investors/publications/ [1]
2. ZEAL is an international group of companies reinventing the world of
lottery.
3. Specialising in the online lottery space, the company was founded in 1999
as Tipp24 SE and renamed as ZEAL Network SE in 2014.
4. The company is based in London, and its shares are listed on the Prime
Standard of the Frankfurt Stock Exchange.
5. Since its incorporation, ZEAL has generated stakes of more than EUR3
billion and, across the Group, paid out more than EUR1.5 billion in
winnings.
6. ZEAL's associated company, myLotto24, invented the concept of
jackpot-matching online 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.
7. ZEAL Group includes all subsidiaries of ZEAL Network SE and the
affiliated companies of the independent shareholding myLotto24 Ltd.[1]
Billings comprise all stakes from customers (including brokerage stakes) net
of free bets
ISIN: GB00BHD66J44
Category Code: ACS
TIDM: -
LEI Code: 391200EIRBXU4TUMMQ46
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 5323
End of Announcement EQS News Service
667233 22-March-2018
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(END) Dow Jones Newswires
March 22, 2018 02:35 ET (06:35 GMT)
