May 07 2019

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 €67.4m; down 7.4% year-on-year (2018: €72.8m); down 1.6% on a like-for-like basis
  • Revenue of €36.5m; down 5.8% year-on-year (2018: €38.7m); down 3.5% on a like-for-like basis
  • TOP of €37.4 million; down 6.2% year-on-year (2018: €39.8m)
  • Adjusted EBIT of €11.6m; up 26.3% year-on-year (2018: €9.2m)
  • Statutory EBIT of €9.8m; up 6.7% year-on-year (2018: €9.2m)
  • Net cash of €102.1m; up 36.2% year-on-year (2018: €75.0m)


With a 16% year-on-year reduction in costs ZEAL delivered a 26.3% increase in Adjusted EBIT to €11.6m (2018: €9.2m). This cost reduction included a €2.2m decrease in personnel expenses and €3.0m 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 €102.1m (2018: €75.0m).


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 €57.47 (€58.02).


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.


[1]Like-for-like excludes the 2018 comparative information for Lotto Network Limited and the consumer-facing business of Ventura 24, in order to provide comparable information relating to the ongoing business.


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