ZEAL Network SE: Adjustment of forecast due to winnings payout

May 17, 2016 8:24 PM

ZEAL Network SE  / Key word(s): Change in Forecast

17.05.2016 20:24

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


In a secondary lottery held by MyLotto24 Limited, a fully consolidated
minority shareholding of ZEAL Network SE, a player has won a prize of
approximately EUR 37 million.

The majority of the prize is covered by a special insurance held by
MyLotto24, which is independent of the ILS hedging structure of high
jackpot pay-outs. Consequently, the pay-out will not affect the self-
retention of the ILS hedging structure. However, the pay-out of the non-
covered part will impact Total Operating Performance and consolidated EBIT
in the current fiscal year 2016 by approximately EUR 17 million.

While statistical fluctuations are inherent to the secondary lottery
business model, MyLotto24 Limited has had prize pay-outs above the
statistical average in the current year to date. ZEAL has therefore
adjusted its Total Operating Performance and EBIT guidance for the current
fiscal year 2016. Taking into account the favorable development and
performance of the business in the first months of the year and assuming a
normal course of business in the remaining year (i.e. absence of very large
jackpots, winnings payouts around the statistical average), ZEAL reduces
its Total Operating Performance guidance for 2016 from EUR 140-150 million
to EUR 125-135 million and its EBIT guidance from EUR 40-50 million to EUR
25-35 million.

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Language:     English
Company:      ZEAL Network SE
              5th Floor One New Change 
              EC4M 9AF London
              United Kingdom
Phone:        +44 (0)20 3739-7000
Fax:          +44 (0)20 3739-7099
E-mail:       office@zeal-network.co.uk
Internet:     www.zeal-network.co.uk
ISIN:         GB00BHD66J44
WKN:          TPP024  
Indices:      SDAX
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
End of Announcement                             DGAP News-Service