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ZEAL Network SE (-)
ZEAL Network SE: Strong results and an exciting future
21-March-2019 / 07:33 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
_NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) DIRECTLY
OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
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_London, 21 March 2019_
*ZEAL Network SE: Strong results and an exciting future*
- _Billings up nearly 6% to EUR 296.3 million_
- _Adjusted EBIT up 85% to EUR 46.6 million; Statutory EBIT up 52% to EUR
38.3 million_
- _Revenue up 15% to EUR 154.8 million_
- _Record number of new registered customers acquired for the Group and
partners_
- _First foreign lottery operator to be awarded a licence in the Czech
Republic_
- _Acquisition of Lotto24 AG on track_
ZEAL Network SE ('ZEAL') today announced strong financial results and record
new customer acquisition for 2018, as it moved closer towards completion of
its acquisition of Lotto24 AG ('Lotto24').
The Group delivered an 85% increase in Adjusted EBIT to EUR 46.6 million,
generating Statutory EBIT of EUR 38.3 million (2017: EUR 25.2 million). The
adjustment accounts for one-off costs primarily associated with the Lotto24
transaction and restructuring. Billings and revenue grew for the third
consecutive year. Billings were up 6% to EUR 296.3 million (2017: EUR 280.5
million) while revenue increased 15% to EUR 154.8 million (2017: EUR 134.3
million). Total Operating Performance (TOP) was EUR 159.7 million, an
increase of 13% year-on-year (2017: EUR 141.2 million).
ZEAL also acquired a record number of new customers for the Group and its
partners, while significantly reducing its acquisition costs. The 614,000
new registered customers represent a 49% increase on the previous year
(2017: 411,000), while the cost per lead in the lottery betting business
reduced by 42% in 2018.
*Jonas Mattsson, CFO, ZEAL, said: *'ZEAL delivered a very strong performance
in 2018. We reduced our financial risk, improved our cost structure and
increased the efficiency of our marketing - delivering a record number of
new customers and excellent financial results. We achieved this while also
preparing to adapt for the future as we initiated our plan to reunite with
Lotto24 - a strategic move that protects our core business, reduces
shareholder risk, and creates strong platform for growth. This, combined
with our excellent financial performance makes ZEAL a highly attractive
long-term investment proposition.'
Building on the progress made in 2017, ZEAL continued to lay the groundwork
for its international diversification. During the year, it became the first
foreign lottery operator to be awarded a licence in the Czech Republic and
acquired its third and fourth stakes in external lottery-related start-ups,
Wshful (Cloud Canyon Limited) and The Dream Makers (De Integro Limited).
In November 2018, ZEAL announced its intention to reunite with Germany's
largest digital lottery broker, Lotto24, and transform its core German
business model to locally-licensed digital lottery brokerage. ZEAL
shareholders approved the all-share transaction in January 2019 and, to
date, nearly 74% of Lotto24 shareholders have accepted ZEAL's offer.
Completion is anticipated in May 2019.
*Dr. Helmut Becker, CEO, ZEAL, said: *_'2018 was a pivotal year for ZEAL. We
delivered excellent financial results, continued to lay the groundwork for
international diversification, and made ourselves more efficient. Through
our plan to acquire and reunite with Lotto24 we created a sustainable growth
path for our core German business. Online penetration in the global lottery
market remains low and the opportunity is as exciting as ever. I believe we
have positioned ZEAL exceptionally well for the future and the sector's
digital shift.'_
*Selected financial results to 31 December 2018:*
*2018* *2017*
Billings EUR 296.3 million EUR 280.5 million
Statutory Revenue EUR 154.8 million EUR 134.3 million
TOP EUR 159.7 million EUR 141.2 million
Adjusted EBIT EUR 46.6 million EUR 25.2 million
Exceptional items EUR 8.3 million EUR -
Statutory EBIT EUR 38.3 million EUR 25.2 million
Net Profit EUR 26.7 million EUR 17.2 million
EPS EUR 3.18 EUR 2.04
Normalised Adjusted EBIT* EUR 49.4 million EUR 38.1 million
* The difference between the actual pay-out and the expected prize pay-out
is referred to as 'normalisation'
*2019 Outlook:*
In view of the special situation created by the Lotto24 transaction, which
is moving closer to completion, and the transformation of its core German
business model later in 2019, ZEAL does not intend to provide any financial
guidance at this point in time. ZEAL's dividend policy for 2019 is currently
under review.
*- ENDS* *-*
*Media contact:*
Matt Drage
Head of Corporate Communications, ZEAL Network
T: +44 (0)7976 872 861
matt.drage@zeal-network.co.uk
*Investor Relations contact:*
Frank Hoffmann
Investor Relations Manager, ZEAL Network
T: +44 (0)20 3739 7123
frank.hoffmann@zeal-network.co.uk
*Notes to Editor*:
1) ZEAL is an international digital lottery group.
2) The company was founded in 1999. Renamed as ZEAL Network SE in 2014.
3) The company is headquartered in London and its shares are listed on the
Prime Standard of the Frankfurt Stock Exchange.
4) The Group has more than 3.9 million customers globally. Since its
incorporation, ZEAL Group has generated stakes of more than EUR3 billion
and paid out more than EUR1.5 billion in winnings.
5) ZEAL Group includes all subsidiaries of ZEAL Network SE and the
affiliated companies of the independent shareholding myLotto24 Ltd.
6) Total Operating Performance is calculated as the sum of Revenue and
Other Operating Income as disclosed in the Consolidated Income Statement.
7) ZEAL's 2018 Annual Results are available at:
http://www.zeal-network.co.uk/investors/publications/ [1]
ISIN: GB00BHD66J44
Category Code: ACS
TIDM: -
LEI Code: 391200EIRBXU4TUMMQ46
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 7891
EQS News ID: 790063
End of Announcement EQS News Service
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(END) Dow Jones Newswires
March 21, 2019 02:33 ET (06:33 GMT)
