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ZEAL Network SE (-)
ZEAL Network SE: A solid start to 2019
07-May-2019 / 07:32 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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_London, 7 May 2019_
*ZEAL Network SE: A solid start to 2019*
? _Solid underlying performance in billings, revenue and Total Operating
Performance (TOP) despite impact from closure of Ventura24 S.L.U._ _and
Lotto Network_
? _Costs down 16% year-on-year_
? _Positive EBIT performance. Adjusted EBIT up 26.3% year-on-year_
? _Acquisition of Lotto24 AG ('Lotto24') to complete next week after
93.04% of Lotto24 shareholders accepted offer _
ZEAL Network SE ('ZEAL') today announced a solid underlying performance in
the first quarter of 2019.
The first quarter of 2019 was the first reporting period following the
closure of Lotto Network in November 2018 and the Group's Spanish
consumer-facing business, Ventura24 S.L.U. ('Ventura24') in December 2018.
Despite this and a lower number of large jackpots during the quarter having
a negative impact on billings, revenue and TOP, performance was solid on a
like-for-like basis[1].
The Group delivered:
? Billings of EUR67.4m; down 7.4% year-on-year (2018: EUR72.8m); down 1.6%
on a like-for-like basis
? Revenue of EUR36.5m; down 5.8% year-on-year (2018: EUR38.7m); down 3.5%
on a like-for-like basis
? TOP of EUR37.4 million; down 6.2% year-on-year (2018: EUR39.8m)
? Adjusted EBIT of EUR11.6m; up 26.3% year-on-year (2018: EUR9.2m)
? Statutory EBIT of EUR9.8m; up 6.7% year-on-year (2018: EUR9.2m)
? Net cash of EUR102.1m; up 36.2% year-on-year (2018: EUR75.0m)
With a 16% year-on-year reduction in costs ZEAL delivered a 26.3% increase
in Adjusted EBIT to EUR11.6m (2018: EUR9.2m). This cost reduction included a
EUR2.2m decrease in personnel expenses and EUR3.0m reduction in other
operating expenses such as consulting services and hedging. The Group
expects to implement further synergies and reduction in costs before
exceptional items during 2019 as it prepares to transform its business.
ZEAL's net cash position improved by 36.2% to EUR102.1m (2018: EUR75.0m).
ZEAL also continued to build on the positive customer acquisition trend it
has developed in recent years. During the quarter, ZEAL delivered 182,000
new registered customers for the Group and its partners - a 30% increase
year-on-year (2018: 140,000). Average Billings Per User were broadly
maintained at EUR57.47 (EUR58.02).
*Jonas Mattsson, CFO, ZEAL, said: *_'We delivered a positive EBIT
performance, reduced our cost base and further improved our net cash
position. These results highlight the strong position we have created for
ZEAL and set us up well as we prepare to complete our acquisition of
Lotto24. I look forward to next week's reunification of ZEAL and Lotto24
and, together, building our Group's future.' _
The acquisition of Lotto24 is expected to close on 14 May 2019 after 93.04%
of Lotto24 shareholders accepted the voluntary public takeover offer within
the two acceptance periods.
*2019 Outlook:*
In view of the special situation created by the Lotto24 transaction and the
transformation of ZEAL's 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* *-*
*Investor Relations contact:*
Frank Hoffmann
Investor Relations Manager, ZEAL Network
T: +44 (0)20 3739 7123
frank.hoffmann@zeal-network.co.uk
*Media contact:*
Matt Drage
Head of Corporate Communications, ZEAL Network
T: +44 (0)7976 872 861
matt.drage@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.ZEAL's Q1 2019 results are available at:
http://www.zeal-network.co.uk/investors/publications/ [1]
[1] Like-for-like excludes the 2018 comparative information for Lotto
Network Limited and the consumer-facing business of Ventura24, in order to
provide comparable information relating to the ongoing business.
ISIN: GB00BHD66J44
Category Code: QRF
TIDM: -
LEI Code: 391200EIRBXU4TUMMQ46
Sequence No.: 8523
EQS News ID: 807845
End of Announcement EQS News Service
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(END) Dow Jones Newswires
May 09, 2019 17:10 ET (21:10 GMT)
