ZEAL Group reduces risk exposure by EUR20million over two years
Jan 17, 2018 8:30 AM
DGAP-News: ZEAL Network SE / Key word(s): Miscellaneous
London, 17 Jan 2018
New hedging structure lowers exposure and EBIT fluctuation risk; increases capital efficiency and flexibility
The sophisticated hedging structure will provide cover during 2018 and 2019. It is backed by some of the world's leading investors, and combines a number of risk management mechanisms including collateralised reinsurance and specialist jackpot insurance.
Lower risk exposure
Additionally, by moving to cover based on actual risk rather than modelled risks, the Group has been able to secure lower premium rates. Under the new structure, like for like costs per bet are expected to be around 20% lower.
Greater capital efficiency
Greater competitive advantage
Jonas Mattsson, CFO, ZEAL Group, said: "ZEAL continues to lead the way in lottery risk management. Our new structure gives us greater flexibility as we grow internationally, increases our capital efficiency and significantly lowers our risk exposure. This is good news for shareholders and is another step in our continued focus on operational excellence."
Over the last 18 years, ZEAL and its associated companies have generated stakes of more than EUR3 billion and paid out more than EUR1.3billion in winnings. myLotto24 holds the sector's record for the largest ever single payout of EUR48million.
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Notes to Editor:
1. ZEAL is an international group of companies reinventing the world of lottery.
2. The Group specialises in online lottery betting, primary lottery operations and lottery venture capital.
3. The company was founded in 1999 as Tipp24 SE and renamed as ZEAL Network SE in 2014.
4. The company is based in London, and its shares are listed on the Prime Standard of the Frankfurt Stock Exchange.
5. ZEAL Group includes all subsidiaries of ZEAL Network SE and the affiliated companies of the independent shareholding myLotto24 Ltd.
|Company:||ZEAL Network SE|
|5th Floor One New Change|
|EC4M 9AF London|
|Phone:||+44 (0)203 739-7000|
|Fax:||+44 (0)203 739-7099|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|