ZEAL Network SE: Successful reclaim of Spanish lottery tax withheld, impairment charge required for Geonomics investment

Mar 3, 2016 6:29 PM

ZEAL Network SE  / Key word(s): Miscellaneous

03.03.2016 18:29

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MyLotto24 Ltd, a fully consolidated minority shareholding of ZEAL Network
SE, has today received a refund of EUR 9.6 million from the Spanish Tax
Authority. This refund related to lottery tax withheld at source on a large
jackpot payout as communicated in our publication of 13 May 2015. The
payout will have a corresponding positive impact on both Total Operating
Performance and EBIT in ZEAL's consolidated income statement for the year
ended 31 December 2015.

In addition, ZEAL has assessed the viability of the business plans of both
Geonomics Global Games Limited and its subsidiary Geo24 UK Limited
(together "Geo") and concluded that it no longer supports the carrying
value of ZEAL's investment in Geo. As a result, a non-cash charge of EUR 19
million will be recorded in ZEAL's consolidated income statement for the
year ended 31 December 2015. This charge will reduce net profit by the same
amount. The residual carrying value of the Group's investments in Geo is
EUR nil at 31 December 2015.

ZEAL intends to publish preliminary unaudited figures for the year ended 31
December 2015 in the near future.

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Language:     English
Company:      ZEAL Network SE
              5 th 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