ZEAL starts with 35 percent revenue growth into the year 2024

EQS-News: ZEAL Network SE / Key word(s): Quarter Results
ZEAL starts with 35 percent revenue growth into the year 2024

08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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ZEAL starts with 35 percent revenue growth into the year 2024

  * Lottery billings increase by 22 percent compared to the first quarter of
    the previous year

* Revenue from lotteries grows by 28 percent

  * Investments in the future pay off: More than twice as many new customers
    as in the same period last year

  * Slight increase in EBITDA combined with high investments in future
    growth

Hamburg, 08 May 2024. ZEAL Network SE, the leading German online provider of
lottery products, has started the new financial year with a strong growth
spurt. In the first quarter of 2024, billings from lotteries climbed by 22%
to EUR246.3 million. Group revenue increased by 35.0% to EUR 36.1 million (2023:
EUR 26.7 million). EBITDA at Group level increased slightly by 1% to EUR 9.4
million due to one-off effects and the almost doubling of marketing expenses
compared to the previous year.

"We made a very strong start to 2024 and were able to significantly
accelerate our revenue growth, particularly in our core business of lottery
brokerage. We are also particularly proud of the fact that we were able to
achieve EBITDA slightly above the previous year's level in the past quarter
despite almost doubling our marketing expenses and a negative one-off effect
from a major win in our charity lottery Deutsche Traumhauslotterie amounting
to EUR 0.8 million. This shows that our measures to acquire new customers are
paying off very quickly and that we are generating income across the entire
breadth of our customer base," says Sebastian Bielski, CFO of ZEAL. "With
the announced squeeze-out at LOTTO24, we are also putting ZEAL in the best
possible position for the future and are leveraging further efficiency
potential."

Revenue in core business grows by 28 percent
ZEAL's significant revenue growth in the first quarter is primarily due to
the strong performance of the lottery business. Billings increased by 22% to
EUR 246.3 million, while revenue from lotteries rose by as much as 28% to EUR
32.0 million (2023: EUR 24.9 million). The growth in billings is primarily due
to the 21% increase in the average number of active customers per month
(MAU). ZEAL was also able to improve the gross margin in the lottery
business to 13.0% (2023: 12.4%) thanks to a change in the product mix and
further margin optimizations. Excluding the one-off effect from the
distribution of a major prize in the company's charity lottery Deutsche
Traumhauslotterie, the gross margin would have been as high as 13.3%.

Games business with significant revenue growth compared to Q4 2023
The games business, which was launched last year, also developed very
positively in the first three months of the year. Compared to the fourth
quarter of last year, ZEAL was able to increase revenue from games by around
20% from EUR 1.8 million to EUR 2.2 million. At 7.0%, the gross margin was
stable compared to the previous quarters.

ZEAL was also able to further expand its games portfolio at the end of the
quarter. The subsidiary LOTTO24 AG received permission to offer a further 64
games.

Stable result thanks to efficient expansion of future earnings base
ZEAL invested heavily in future growth in the past quarter, acquiring more
than twice as many new customers (320 thousand) as in the same period of the
previous year (2023: 143 thousand). The company achieved this customer
growth much more efficiently than in the same period of the previous year.
At EUR 33.04, the acquisition costs per registered new customer (cost per
lead, CPL) were noticeably lower than in the previous year (2023: EUR 36.77).
Due to the company's strategic decision to use the exceptionally good
jackpot situation in January 2024 for efficient new customer growth,
marketing expenses of EUR 13.4 million were 91% higher than in the same period
of the previous year (2023: EUR 7.0 million). As a result, other operating
expenses rose to EUR 21.0 million (2023: EUR 12.5 million). As a result of the
increased number of new customers and the growth of the games business, the
direct costs of business operations also rose to EUR 4.0 million (2023: EUR 2.7
million).

At EUR 9.4 million, EBITDA was slightly higher than in the first quarter of
the previous year (2023: EUR 9.3 million). At EUR 7.5 million, EBIT was 6%
higher than in the same period of the previous year (2023: EUR 7.1 million)
due to lower depreciation and amortization recognized in profit or loss. Net
income for the period rose to EUR 21.1 million (2023: EUR 4.7 million) due to
the first-time recognition of expected tax benefits from the utilization of
existing tax loss carryforwards in connection with the LOTTO24 squeeze-out.

Due to the good results of the first quarter of 2024, ZEAL confirms the
forecast published on March 20, 2024.


About ZEAL
ZEAL Network is an e-commerce group of companies based in Hamburg and the
market leader for online lotteries in Germany. Founded in 1999, we brought
lotteries to the internet. Today, the ZEAL group now has around one million
active customers and more than 200 employees at three locations. ZEAL allows
the participation in state-licensed lotteries via the LOTTO24 and Tipp24
brands and also offers its own lottery products. ZEAL also owns the brands
ZEAL Instant Games, ZEAL Ventures and ZEAL Iberia. In 2024, the ZEAL Group
celebrates its 25th anniversary. Since our foundation, growth, innovation
and success are at the heart of what we do.

Press Contact:
ZEAL Network SE
Kristin Splieth
Head of Corporate Communications
Kristin.splieth@zealnetwork.de
Tel: +49 (0) 40 808117560


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   Language:       English
   Company:        ZEAL Network SE
                   Straßenbahnring 11
                   20251 Hamburg
                   Germany
   Phone:          +49 (0)40 8090360-42
   Fax:            +49 (0)40 822239-77
   E-mail:         frank.hoffmann@zealnetwork.de
   Internet:       www.zealnetwork.de
   ISIN:           DE000ZEAL241
   WKN:            ZEAL24
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1897833

End of News EQS News Service
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1897833 08.05.2024 CET/CEST