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EQS-News: ZEAL Network SE / Key word(s): Quarter Results
ZEAL starts with 35 percent revenue growth into the year 2024
2024-05-08 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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


2024-05-08 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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 2024-05-08 CET/CEST

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END) Dow Jones Newswires

May 08, 2024 01:31 ET (05:31 GMT)